Insurance for a new car: Everything you need to know about Insuring a new vehicle

Auto insurance for a new car

Have you purchased a new car? Are you thinking of buying one? Before you get behind the wheel in Ontario, you need to have auto insurance.

When looking for a new car, you likely go to a reputable car dealer to determine which vehicle meets your lifestyle needs and budget. The same is true when buying new car insurance: Go to a top-rated insurance broker to get auto insurance that meets your needs and budget.

You can get competitive insurance quotes for a new vehicle when you contact an insurance broker. You will receive professional guidance on the best insurance coverage to ensure your new car is properly protected. The icing on the cake is an insurance broker makes insuring a new car quick and easy.

What insurance do I need for a new car?

Insuring your new vehicle is not only essential; it is required by law in Ontario. There are four mandatory insurance coverages in the province of Ontario: Third-party liability coverage, accident benefits coverage, direct compensation property damage coverage, and uninsured automobile coverage.

Third-party liability coverage protects the insured driver when someone is injured, killed, or property is damaged. Third-party liability pays for defence costs to settle legal claims against you to a stipulated limit. The minimum amount of liability coverage in Ontario is $200,000. You can purchase increased limits and, due to high costs associated with lawsuits and settlements, at least $2 million in liability coverage is highly recommended. Why? Let’s suppose a court determines you must pay $1 million to an injured person following a motor vehicle accident. If you have $200,000 in third-party liability coverage, the insurance company will pay $200,000 of the $1 million. The rest of the money must be paid by you.

Accident benefits covers costs not covered by OHIP if you are injured in an accident. Some benefits are income replacement, dependant care, caregiver, medical, rehabilitation and attendant care, death, and funeral costs. There are statutory coverage minimums for accident benefits coverages; however, there are options to purchase increased limits.

Direct compensation property damage covers damage to your vehicle, contents, and loss of use when another driver is at fault for an accident.

Uninsured automobile coverage is protection if you and your family are injured or killed in an accident with an uninsured or hit-and-run driver. This coverage pays benefits to the driver and passengers to recover from an injury and repair or replace your vehicle.

Insurance For A New Vehicle - Morison Insurance - Ontario

Additional Insurance Coverages Available for a New Vehicle

If you would like more protection for you and your new vehicle, you can increase the limits and purchase additional coverages, such as collision coverage, comprehensive coverage, and waver of depreciation coverage, that can be added to your policy.

Collision coverage to protect your asset. Collision coverage provides coverage for any physical damage to the car due to events such as hitting another vehicle, pole or fence.

Comprehensive coverage protects against theft, fire, vandalism, falling objects or glass claims. These are non-collision-related losses. Comprehensive coverage is good to have. Suppose your windshield is damaged by one of these perils. Many windshields in new cars have the technology to make driving safer, such as built-in defoggers, and repairs can be costly.

We recommend Waiver of Depreciation coverage when buying new vehicle insurance because as soon as you drive your new car off the dealership's lot, its value begins to fall. Some say a new vehicle's value may drop by 10% in the first month alone and more than 20% in the first year after purchase. Waiver of depreciation protects against depreciation when settling a claim for loss or damage for 24 to 60 months after the purchase date, depending on which insurance company insures your vehicle.  The waiver places a value on your car for a period. In case of a claim, you will receive whichever is the lowest of these three: the amount you paid for your new vehicle, the manufacturer’s suggested retail price of the automobile or the cost to replace the vehicle with a new one of the same make and model.  This amount includes applicable taxes.

Your best bet is to speak with an insurance broker. They are available to answer questions and provide guidance to ensure you, and your new car, are properly protected.

When should I get insurance for a new car?

You should get insurance for a new car when the sale is finalized, and you are waiting for the delivery or pick-up date of your new car. The dealership will require proof of insurance before you can pick up the vehicle.

An insurance broker will get you several competitively priced insurance quotes quickly and will help you get new car insurance that meets your needs. The insurance broker will also work with the dealership to ensure your insurance is in place when you get your new vehicle.

Car Insurance For A New Car - Morison Insurance - Ontario

How do I compare insurance quotes for a new vehicle?

You can compare insurance quotes for a new vehicle by contacting an insurance broker who shops for numerous quotes from several insurance companies. Shopping means you can compare coverages and prices to get good value. The broker will discuss the quotes with you, answer your questions and help you to determine which policy is best for you.

How do I get insurance for a new car?

Get insurance for your new car by contacting an insurance broker who will look after you and make the process quick and easy.

The insurance broker will ask for information about you, such as your driving history, where you live, and how much you drive. They will also ask for details about your new vehicle, such as the make and model. If needed, the broker will also contact the dealership for you to get details on your vehicle, financing information and a copy of the ownership.

The insurance broker will then quickly get several insurance quotes and will discuss coverages and prices, and ways you may be able to save. The broker will also answer any questions you have. You can select which policy is best for you and the broker gets your new vehicle insured.

How much does insurance cost for a new car?

The cost of new car insurance can usually range between $800 - $4,000 annually. The cost of your auto insurance depends on many factors, some of which pertain to your car and others which are specific to the driver. Some of these details include, the year, make, and model of your new car, your age, driving history, years licensed, where you live, how far the car is driven, and more, will determine your new car insurance price.

To get an accurate quote for your new vehicle, contact an insurance broker who will compare quotes from dozens of insurance companies to ensure you have the best insurance coverage for your new car.

Insuring A New Car - Morison Insurance - Ontario

Is insurance for a new car more expensive?

In most cases, insurance for a new car is more expensive. New vehicles are equipped with more built-in safety technology to improve safety, and these features are costly to repair and replace. New vehicles also often have more luxurious features, such as heated seats, blind-spot detectors and back-up cameras. These features can make replacement or repair following even an accident – even, in some cases, a seemingly minor fender bender – more complicated and expensive.

What happens to my current car insurance when I get a new car?

Your current car insurance will change when you get a new car.

If you are replacing a vehicle or trading in a car currently on your auto insurance policy, you will need to tell your insurance broker the date when the replacement car will be ready, or the trade-in will take place. At that time, the insurance broker will replace your existing vehicle on your auto insurance policy with your new car.

If you are adding a new vehicle to your auto insurance policy, your insurance broker will discuss what insurance coverages and deductibles you want on the car and ask about the vehicle's usage. The broker will then contact the insurance company that provides your auto insurance to determine the price to add the new vehicle. The insurance broker will inform you of the additional cost, and you can then have the vehicle added to your auto policy. Adding a new vehicle is often less expensive than cancelling an existing insurance policy, where penalties may apply. Tell your insurance broker where you purchased your new car so the broker can collect additional information to ensure your new car insurance is in place on your pick-up date.

If you sell or want to remove a vehicle listed on your auto insurance, always let your insurance broker know to remove it from your policy.

Where can I get an insurance quote for a new car?

You can get new car insurance from Morison Insurance. We are insurance experts providing outstanding insurance coverage and service. Our brokers will get you multiple new car insurance quotes and discuss your needs based on your lifestyle. Contact us today by calling 1-800-463-8074 or by filling out the form on our website.


This content is written by our Morison Insurance team. It is provided for general information only. Insurance needs differ from person to person, and this article is therefore not a substitute for professional advice about your individual insurance needs which can be obtained by speaking to one of our brokers.

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