Sudbury car insurance premium rates are expectedly meant to be cheaper for residents and drivers in the city, compared to other major Ontario cities. No one likes to spend money on insurance – either life or auto. Invariably, no one likes to pay more than others for the same product or service.
However, driving in the Greater Sudbury area and other Ontario cities requires you by law, to have compulsory insurance on your vehicle. Any driver caught driving without a valid car insurance coverage faces a penalty of having his or her driver’s license seized with payment of fines. The authorities may also impound such a driver’s car. Hence, you need to equip yourself with the right information on how Sudbury car insurance works and the measures put in place to determine rates.
Sudbury or Greater Sudbury area is a Canadian city located in the Ontario province. The city is famously known as a mining town. Greater Sudbury, located in northern Ontario, is the largest city in the northern part of the province with a population of approximately 165,000 people. Sudbury city occupies the fifth largest municipality in Canada in terms of land area.
Sudbury Car Insurance: How It Works
Compared to other major cities in Canada, Sudbury has a relatively smaller population. This implies that there will be fewer vehicles and commuters on the road daily, vying and scrambling for top spots on the city roads. Invariably, there would be less traffic, less accident and collision, and few insurance claims, which implies cheaper car insurance rates. Although Sudbury car insurance rates might be cheaper than other major Ontario cities, it is still more than what other drivers pay in other major Canadian cities.
The Ontario car insurance rate is the second most expensive auto insurance rate with an average of $1,528, a little below the British Columbia auto insurance rate.
Private companies operate car insurance in Sudbury as in other Ontario cities. This has led to competition in service and premium rates. Though the rates charged by these insurance providers are approved and regulated by the Financial Service Commission of Ontario (FSCO) and the Financial Services Regulatory Authority of Ontario (FSRA), there are salient factors considered by insurance providers in determining the premium paid by each driver in Greater Sudbury.
Hence, it is no surprise that some people may experience high insurance rates than others in the same city with the exact specifications. This is why it is important to shop around and compare quotes from different insurance providers and choose the best car insurance rates available.
Car insurance rates change from time to time. The auto insurance rate is reviewed, approved and published every three months by the FSCO. Thus, it is essential for drivers to often shop for the lowest rate available.
Mandatory Coverages for Sudbury Drivers
Every driver in Sudbury is mandated by law to have car insurance on their vehicles. The Ontario province has stipulated some mandatory car insurance coverages that every driver must have in their car insurance policy. Anyone who requires additional coverage can opt for the optional car insurance coverages. The mandatory car insurance coverage includes:
Accident Benefits Coverage
This coverage covers the occupants of a vehicle against injury sustained in a crash. The coverage includes medical and rehabilitation cost, recovery expenses, funeral expenses, and death benefits.
Uninsured Motorist Coverage
This coverage protects you and your family against injury or death if you are involved in an accident with an uninsured or hit and run driver.
Third Party Liability Coverage
This coverage pays for legal claims against you, specifically if you are liable or responsible for a collision or crash that leads to injury, death, or property damage of another person. The minimum coverage requirement is $200,000. The most common coverages are $500,000, $1 million, and $2 million.
Direct Compensation Property Damage (DCPD)
This coverage protects you gains t damage to your vehicle and any property inside the car, as a result of a crash caused by another driver.
Additional Coverage Options
The following are some of the additional coverage options that you can add to your car insurance policy in Sudbury.
- Collision coverage
- All perils coverage
- Comprehensive coverage
- Waiver of depreciation
What Determines My Sudbury Car Insurance Rate?
Type of Vehicle
The type or model of the car you drive, and the sophisticated nature of the vehicle will determine your auto insurance rate. Other aspects include the year, repair cost, engine size, theft rate, and more.
Your Residential Location
Drivers who live in high traffic prone areas pay more rates as a result of high congestion on the roads, which can result in a high possibility of collisions.
Age and Gender
Another factor used by insurance providers is the age, gender, and marital status of the policyholder. For instance, a female policyholder will usually pay less than her male counterpart.
Your driving record and history are also used as determining factors. This involves the number of traffic tickets, traffic convictions or charges, accidents, and insurance claims.
Another factor taken into consideration is the distance you cover in driving to work or the period/time you spend on the road driving daily.
How Can I Lower My Sudbury Car Insurance Rate?
Shop and Compare
To get the best lowest car insurance rate in Sudbury, you need to shop around, compare quotes from different car insurance providers, and choose the best available lowest rate.
Buy and Install Winter Tires
Driving during the winter season can be difficult, with slippery roads and poor visibility, making it a high-risk period for accidents and high insurance claims. You can get up to 5% discount on your auto insurance premium when you buy and install winter tires. This shows that you value your safety.
If you are a member of an association, group, or a professional body, you may be entitled to auto insurance discount by your insurance provider. The key to getting this discount is by asking your insurer about available discounts that you might be a beneficiary.
A deductible is the portion of an insurance claim you agree to pay from your wallet. Increasing this can lower your premium rates.
Bundle Your Policy
You can also get discounts from your insurance provider when you bundle your home and auto insurance policy with the same insurance company.
Sudbury car insurance premium rates are flexible, as all the insurance providers have different rates. With the above tips, you can get the lowest rates that suit you.