NF Insurance for brand new drivers

[Dan668]

That's awful. When I first started I paid 3500 a yr. Now I pay 2200 which includes comprehensive collision and 2m liability and I'm 22

[Dan668]

Forgot to mention zero deductibles.. this is with statefarm.

[Canuck2fan]

Ontario is unique for auto insurance because the Insurance industry here pay out the most of any jurisdiction in Canada and they LIKE doing it too. This is still true even with the reductions in our coverage from 2010 that were supposed to drop our rates.

 

Here is the condensed version of facts that makes auto insurance a BAD deal for customers in Ontario. A while back the insurance CEO's sat down the boys in parliment and told them they were going to stop covering autos..... Unless the province guaranteed them a 12% return AFTER ALL THEIR claims were paid out. The reason they demanded the 12% "profit" after claims and "claims only" was because at that time they could have put the money into bonds and made around a 12% return. Politicans being stupid agreed even though there were two major flaws with this arrangement.

 

First with the 12% being guaranteed AFTER claims that meant that for the next renewal the insurance company could raise rates to meet any shortfall to top up to 12%. It also meant that if an insurance company cracked down on fraudulent or any claims paid out for that matter they would actually HAVE to charge customers less the next year. Now they might be greedy but insurance companies aren't stupid because the margin of 12% on a million after claims doesn't look as nice on the bottom line for shareholders as 12% on a billion!!! So at no time do they have ANY incentive to cut payouts on claims dispite what they might want us to believe, because the math doesn't lie.

 

The second flaw with their argument about needing 12% to match would they would have gotten in the bond market is two fold. Firstly, they would NOT have HAD any money from auto claims to put in the bond market if they stopped insuring cars, but the politicans didn't seem to grasp that part. Secondly now in the bond market if you are a frigging investing savant you might get a 3% return? So now the companies are enjoying about 8 to 10% more than they could in the bond market. Of course they have to cover the losses they took by diving into the junk mortgage market a few years back.

 

So until a government gets the stones to say to the industry sink or swim without the 12% guarantee after your claims are paid out, our rates for auto insurance will continue to sky rocket, because the more they spend out the more they can charge the following year. Also if you don't get insurance the government will charge you and the industry will punish you with even higher rates when you do knuckle under.

[nofish4me]

Location, Location, Location!

 

And a Honda Civic is the most stolen car.

[Dan668]

My post was towards the op. Im from toronto. And this is with a 02 exploder v8. When I first got insurance, my parents were owner but I was principle driver. Statefarm tacked on multi vehicle, house and good student discounts ( over 70). When I turned 18, statefarm let me go on my own and allowed me to keep all these discounts.

[Steve]

i don't work in auto insurance, but working in the industry has allowed me to pick up a couple tips.

 

- shop around. every year. know your details. for auto know your ticket history. no point in having someone quote you something that isn't correct, cause they likely will run a check, and your picing will change. just be upfront. for property know the age of your roof, wiring, other upgrades, anything that will make your property more attractive.

 

- if you do have a broker, and they can't get you a price you feel is good, then don't be afraid to shop around just your sons policy. I mean you might have a great relationship with your broker; maybe a long time deal and you don't want to move all your policies. Well, you don't have to. Call some direct writers. BelAir Direct, PC, heck, really shop around. You may be surprised that you find a single home for your son without having to change the rest of your policies.

 

- increased deductibles. if your son is driving an older car, with the cost of insurance, just request the highest property deductible. At least $1k. Yes, in the event of a claim, he's paying a grand, but heck, he's paying a lot more than that anyway. I can confirm that our company provides a rate break at 21 and 25. As well when you get married, or become common law. If he is only being Insured for 3rd party liability only, consider lower limits. Not something that I love to suggest, but $1m (instead of $2m) might be an option.

 

- distance driven per day. make sure the broker is asking you the distance driven. your son works in toronto which may mean he isn't driving far distances per day. as such, his rate should be lower. I believe our companies greatest discount is when you confirm less than 15km's per day.

 

- driving school discount. most companies will offer discounts for folks who have passed an accredited driving school.

 

oh, I'm paying $1,750 annual on a 2003 Yukon SLT w/ col, comp, $300 ded, and $2m Liab. Even us working in Insurance get taken on our prices.

[Dan668]

Agreed, looking around is key. Our friend In statefarm couldn't insure me and my brother for a good price. We went to another statefarm broker and got a much lower price. Don't ask me how that worked

Edited December 5, 2012 by danbob

[Dan668]

Kind of worried about my cheap rate. Got a 33 over to fight in court this week

[Steve]

Volume DanBob.

 

State Farm is a direct writer of sorts - agent controlled. depending on the experience of volume of the agent, they may get preferred pricing discounts.

[funfishing]

Try Belair, I was with TD Meloche Monnex for a few years and upon turning 25, they gave me a discount but Belair's quote was even better. I used kanetix.ca to shop around, just took a moment and I was hooked up with Belair because their's was the cheapest for me.

 

I leased a vehicle when I was 21, and for full coverage I was paying about $285/month in Waterloo. So for TO that probably would have been $50 more per month. Around $4000 seems normal for GTA, first time own insurance, under 25 category. Once you hit 25, it goes down. Getting your G, it also goes down considerably.

[funfishing]

Kind of worried about my cheap rate. Got a 33 over to fight in court this week

 

I'm fighting a 93mph in 65 mph, a 25km over (reduce from 38 over), a 15km over (reduced from 27 over), and a no insurance. All these after years of driving with no tickets. Don't feel too bad!

[kemper]

Belair Direct is the only insurance company that young drivers can even afford to call for a quote.

 

When I bought my first car they came in at more than $1000/year less than the next guy.

 

I've been driving 6 years, 4 with my own car and have a totally clean record. I pay $115/mo - which isn't so bad when I hear what most of my buddies are paying...

[nlpaintballer]

yep, ontario is horrible for rates. At 28 with a G2, previously insured on a motorcycle in my name, I was quoted 3500-4500 on a 96 f-i50 with a clean record. The damn truck only cost me 1500 and it wasn't even a 4x4 or extended cab. Had to sell it to my dad and be listed as a secondary driver.

 

For a newer car, my quotes ranged from 6000-7500 depending on the make. What a scam.

[DanD]

I don’t know or understand; but the government has made it law that we must have auto insurance (which everyone should but that’s beside my point); so why doesn’t the government offer us a bare bones liability insurance? I’ mean something that would be affordable to anyone; but if you were the liable party in an accident, then you’re on the hook to them like income tax, something that doesn’t go away until paid? There’s probably thousands of reasons why they shouldn’t; but to make a law that we need to purchase something and then stand back and let the vender of this product run wild?

 

Dan.

Edited December 5, 2012 by DanD

[danbouck]

I started paying $540/month, then down to $420 for a year, then down to about $340 for about 5 years. It's ridiculous! Now I pay $130/month but it took 10 years to get down to that.

[limeyangler]

ONTARIO INSURANCE IS A SCAM!

 

I was paying the equivalent of $700 a year driving my brand new Ford Focus ( i think they are called ZX Focus here). I had 9 years no claims bonus.

 

When i moved here, they would not recognize any of my drivers experience and none of my no claims, even though i provided a letter from my UK insurer confirming my driving record. Basicaslly saying i was considered a 'New Driver'....what a load of crap. They wanted to charge me over $3500 for my truck(canyon).

 

I manged to convince the broker here to get someone to aknowledge 4 of my 7 years of my no claims bonus....but they would only consider it as driving experience towards a 7 year threshold when my rates would magically go down.

 

 

RIP OFF

[Jer]

Well how much is auto insurance in Ontario for a person with a clean record...45 years old,, driving umm say a new Corolla or any car in that price range? Is it that outrageous?

 

 

Well I'm only 44, and don't drive a Corolla but a 2001 Dakota, my record was clean until just these past few weeks.

 

I'm paying about $1200 a year, full coverage.

[Jer]

I'm fighting a 93mph in 65 mph, a 25km over (reduce from 38 over), a 15km over (reduced from 27 over), and a no insurance. All these after years of driving with no tickets. Don't feel too bad!

 

 

As long as you realize, that fighting a "reduced" ticket in court and losing, you can be found guilty of the original, pre-reduction charge.

[davew3]

Do you have any relatives that live out in the country that he could move to? On paper anyways.

[workwear]

Do you have any relatives that live out in the country that he could move to? On paper anyways.

 

 

ive often thought of that....but he will STILL one day need to get insurance...so the old saying goes...pay them now or pay them later

 

remember....insurance companies require you to disclose how many license drivers live at that address...

 

he needs to be placed on a policy otherwise it aint gonna count towards his so called experience

[davew3]

ive often thought of that....but he will STILL one day need to get insurance...so the old saying goes...pay them now or pay them later

 

remember....insurance companies require you to disclose how many license drivers live at that address...

 

he needs to be placed on a policy otherwise it aint gonna count towards his so called experience

[John]

Roy.. I have FULL coverage on my F150.. replacement (as it's financed) etc. It also has my youngest down as an occasional driver "at school"... $1100/YEAR!

 

Davey Buoy... there are bonuses in having kids that want to drive at 16!.. and having them listed as occasional drivers since, to show continueous insurability before they go out on their own. If that fails.. make sure his drivers licence is changed to a new address and he "borrowed" your car!

 

Yep this is the way to do it. Our kids were listed as occasional drivers from 16 on. For 2012 F150, 2010 VW wagon, 2008 Princecraft and homeowners insurance around $350 a month.

[Freshtrax]

Malory insurance brokes in Barrie always get me a fair deal.

[DRIFTER_016]

When I moved from Ontario to the NWT in 2005 my car insurance instantly dropped 75%!!!!

It went from $4k/yr to $1k/yr just by moving. I felt like I had won the lottery when I went to change my insurance over.

[ch312]

at 18 i finally got my license and got quotes on an early 90's ford tempo that were $300/month on a $500 car ended up getting a roadmaster and paid the ridiculous insurance for a few months. i ended up with a roadmaster that cost $300 /month. my dad was with state farm so i called them to see if they'd give me a discount if i switched to them to be with the same insurer as my dad and it saved me a few bucks a month.

 

then, i found a nice little tidbit...listing myself as common law rather than single dropped my yearly rates by over $1000. within 2 years my $300/month rates on a junk car dropped to $160/month for a newer dakota with full coverage. their theory is people who are in a serious relationship are more mature and less likely to cause accidents.

 

9 years and 3 speeding tickets later my house, truck, atv, and motorcycle (newly licensed with a xt250) are $260/month with full coverage.

 

 

FYI...state farm still gives a discount at 25. but, because i already had the marriage discount applied, when i turned 25 my rates only dropped $7/month. they said this would have been a much bigger drop if i wasn't already listed as common law.

 

 

another FYI for state farm customers. they offer a 15% discount (on top of the driving school discount) for drivers under 25 who are willing to watch a safety video and keep a driving log. this could result in huge savings for many new drivers...