Kitchener Car Insurance: Best Options in 2024
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Discover the methodologyDid you know that you are legally required to have four types of mandatory car insurance in Kitchener, Ontario?
But how are you then supposed to know what car insurance to buy and who the best insurance providers are in Ontario?
This article can act as your one-stop car insurance in the Kitchener guide. It will break down the four types of mandatory coverage, explore optional add-ons for you to personalize your policy and point you in the direction where you can find the best car insurance providers in Ontario.
Kitchener Car Insurance: 5 Key Takeaways
- There is a legal requirement to have four types of car insurance in Kitchener.
- You must have liability, accident benefits, DC-PD and uninsured automobile insurance.
- Average car insurance costs in Ontario can range from $150 to $500 per month.
- Standard auto insurance offered by all insurers in Kitchener includes mandatory coverage.
- Numerous car insurance discounts are available depending on the insurance provider.
How does mandatory car insurance work in Kitchener, Ontario?
In Kitchener, Ontario, having car insurance isn’t just a good idea, it’s a legal requirement. Mandated by the Canadian government and regulated by the Financial Services Regulatory Authority of Ontario (FSRA), all drivers are required to be insured for third-party liability, accident benefits, direct compensation - property damage, and uninsured automobiles.
The reason for mandatory insurance is that it acts as a financial shield that protects all motorists from unexpected losses arising from accidents. Whether these losses come in the form of physical injury and medical bills or property damage, car insurance will provide peace of mind knowing that severe financial loss won’t accompany a motor incident.
If you want to compare car insurance quotes in Ontario based on your unique needs, simply use our free tool below. It gives you results instantly and it's completely free.
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Mandatory Kitchener car insurance coverage
| Mandatory car insurance in Kitchener, Ontario | Extent of coverage |
|---|---|
| Third-party liability coverage | This provides coverage against any property damage or injuries caused to others in a vehicular incident where you are at fault. The absolute minimum requirement for third-party liability is $200,000 in Ontario, although the majority of drivers choose higher limits. |
| Accident benefits coverage | If you’re in an accident that is not your fault you might still be at a financial loss due to medical expenses or lost income. Accident benefits provide you with financial protection following a collision regardless of who caused it. |
| Direct compensation – Property damage (DC-PD) coverage* | Similar to accident benefits, DC-PD offers financial protection against damage to your vehicle regardless of who is at fault. DC-PD allows individuals to claim against their insurance provider which takes the hassle out of navigating fault and ensures that repairs are completed quickly. |
| Uninsured automobile coverage | Since not every motorist has insurance, uninsured automobile insurance was introduced to provide a policyholder with protection if they’re in an accident with an uninsured driver. Uninsured automobile coverage also provides coverage against hit-and-runs. |
Watch out!
*Direct compensation-property damage (DC-PD) will only apply to your vehicle if:
- The collision or incident happens in Ontario
- One of the other vehicles in the accident is also insured by an Ontario-licensed insurance company
- At least one other vehicle is involved in the incident
What is Kitchener standard auto insurance policy?
While buying the four types of mandatory coverage in Ontario may seem daunting, the way that the insurance coverage is implemented in practice is fairly user-friendly. Most Ontario car insurance companies offer standardized policies, which are regulated by the FSRA.
This means that when you buy a standard auto insurance policy from one of Ontario’s car insurance providers, you will automatically acquire a pre-assembled package of all the mandatory insurance required by the government.
This simplicity eliminates the need for individuals to research and buy each type of coverage and streamlines the overall process while ensuring compliance with provincial law.
However, finding the right standard coverage may not be easy. HelloSafe’s online car insurance comparison tool makes your life easy by automatically comparing the best coverage in your province. It gets you free quotes from multiple providers in a few quick steps.
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What are the optional add-ons for Kitchener car insurance?
While standard auto insurance policies provide a solid foundation covering all the legal requirements, many motorists do seek additional coverage for an extra layer of security. The extra coverage is necessary to gain comprehensive insurance for all damages that may befall a vehicle or its passengers in the event of a collision or incident.
These optional add-ons for Kitchener car insurance include:
- Collision and upset: This insurance protects the insured vehicle against damage resulting from an incident with another car or a stationary object, such as a brick wall or street sign. In addition, it will also cover the costs to repair any damages as a result of the vehicle turning over.
- Specified perils: As the name indicates, specified perils protect against specific, named, incidents. These include often include fire, theft, water, earthquake, explosion and damage caused during transport.
- Comprehensive coverage (except collision and upset): Similar to specified perils, comprehensive coverage will cover all extra damages where the driver is not at fault. Specified perils and comprehensive coverage do differ, however, as the latter will also insure against vandalism and damage caused by falling objects.
- All perils: This optional add-on is often purchased by the most risk-averse individuals as it provides coverage for nearly all motor incidents. Additionally, it combines the coverage under one policy meaning that only one co-payment or deductible will be required.
- Waiver of depreciation: If a vehicle is less than 5 years old, the waiver of depreciation add-on will allow you to replace your vehicle with the same or comparable model if your vehicle suffers a total loss. Without this coverage, the insured would normally only be reimbursed the value of the vehicle, including its depreciation.
- Borrowed and short-term rental: Additional insurance that extends coverage to damage of a borrowed or rented vehicle.
Credit card rental car insurance
Before paying extra for short-term rental coverage, have a look at any potential benefits offered alongside your credit card. Often, credit cards provide rental car insurance for free which can save you money on this optional car insurance add-on.
What companies offer the best car insurance in Kitchener, Ontario?
The best car insurance in Kitchener, Ontario, is provided by some of the biggest insurers in Canada. In addition to the basic standard auto insurance policies, these insurance providers will also offer a variety of optional add-ons outlined above to ensure that you can purchase the personalized car insurance you need for your unique circumstance.
The following are some of the top insurers offering the best car insurance in Ontario. Click on them to explore our detailed guides on their coverage, cost, how to apply, and more.
When buying car insurance you want to make sure that you are getting the best coverage at the best price. You can explore these aforementioned insurance policies and plans from Canada's other top providers right here. Use HelloSafe’s free online comparison tool to compare multiple car insurance quotes at the same time.
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How much does Kitchener car insurance cost?
Kitchener car insurance premiums are determined by a variety of factors that vary between providers. When applying for insurance, your relationship with these factors will be reviewed by underwriters who ultimately determine their risk and the subsequent premium that you will have to pay to get insured.
The factors determining your car insurance costs include, but are not limited to:
- Age and gender of the policyholder
- Previous driving experience and length of time you have had your licence
- Where you reside
- Former claims history, traffic violations or criminal convictions
- The amount of driving you will do per day and per year
- The purpose of your driving
- The year, make and model of the insured vehicle
- Where the vehicle will be parked during the day and overnight
- If the vehicle is financed, leased or paid off
- The extent of coverage
- Whether any other individuals will drive the car
Fortunately, despite the considerations above, online car insurance calculators do exist that can provide preliminary quotes based on specific information provided.
The following table indicates preliminary Ontario car insurance costs for Kitchener residents who do not have any prior claims history or traffic violations and want only third-party liability insurance. Additionally, the car insurance premiums are based on a paid-off 2020 Honda Accord EX 4DR, driven no more than 10,000km per year, used to commute to work and parked at the owner’s residence at night.
| Age | Female | Male |
|---|---|---|
| 20 | $279.67/month | $340.08/month |
| 25 | $232.00/month | $226.33/month |
| 30 | $213.75/month | $204.42/month |
| 35 | $205.50/month | $191.25/month |
| 40 | $198.42/month | $182.50/month |
| 45 | $189.42/month | $176.58/month |
| 50 | $174.92/month | $173.92/month |
| 55 | $165.67/month | $169.08/month |
| 60 | $153.83/month | $158.00/month |
What is the cheapest car insurance in Kitchener, Ontario?
While quotes may vary from person to person, the cheapest car insurance in Kitchener, Ontario, is likely offered by Economical Insurance. As a proudly Canadian company, Economical Insurance has become one of the biggest car insurance providers throughout the country and merits its success in focusing on customers first.
Are there any Kitchener car insurance discounts?
The car insurance discounts available in Kitchener will vary depending on the insurance provider themselves. However, nearly all car insurance providers in Ontario will help you save on insurance costs by offering the following:
- Claims free rewards
- Installing an app to track driving habits
- Electric or hybrid vehicle discount
- Multi-insurance combination discount
- CAA membership discount
- Anti-theft device discount
Outside of the official car insurance discounts offered by insurers, you can also prove to underwriters that you are less of an insurance risk. If you are, your premium may decrease further. Some ways in which you can affect the overall cost of your car insurance in Kitchener are:
- Keep a good driving record: By avoiding collisions, incidents and traffic violations, insurers will assume that you are a responsible driver and low-risk insured. This will likely decrease your car insurance premiums.
- Driving a good and cheap car: When a vehicle is considered safe and reliable, without needing constant repairs or at high risk of theft, insurers will gladly take on the risk of insurance for a lower cost.
- Parking: By parking your car in a secure location such as a garage, you will lower the risk of third-party damage and thus your overall premiums.
- Compare rates: Car insurance premiums notoriously increase drastically upon renewal. Do not shy away from comparing your current car insurance policy to others to ensure you get the best current rate.
