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car insurance for newcomers - how to keep it cheap?

Discussion in 'Settlement Issues' started by Juche, Jan 28, 2010.

  1. What is the best way to get affordable car insurance as a newcomer to Canada? They seem to rip off immigrants from what I have seen by the sample quotes I have been getting...
  2. Hi

    1. It helps to have a letter from your previous insurance companies (not agent) showing the no. of years of claim free driving. If you emigrating to BC, the ICBC site has the format of the letter required. 10 years claim free, is worth a 43% discount.

  3. Insurance rates are based on risk. An immigrant without proof of good driving experience is a risk to the other drivers -- whose premiums would go up if the immigrant turned out to be a crazy accident-prone driver.

    So, you are not being "ripped off".
  4. Hi Seniors, Is any1 having the format of the no claim history letter to get the discount for car insurance?
  5. Just request a claim's history from your insurance company. They will have a standard format.
  6. I moved from the US to Ontario and found car insurance to be quite expensive here; almost $1000 more than I used to pay per year, and I have been driving for over 30 years with a very clean drivers and claims history. Part of the cost is higher required coverage at, I think, $1 million. Keep getting quotes though because you will find some variability. You might try CAA (Canadian Automobile Association) and if you are a member of any professional organizations (certified accountants, etc) ask if they have an associations that offer discounts to members.
  7. Move to Manitoba or find some other way to legally register and insurer your car there. You can get full comprehensive coverage for the equivalent price of what you pay for liability in Southern Ontario. Drive an old inexpensive car. Car insurance will still probably be exponentially more expensive in Canada than an equivalent policy in the U.S.
  8. Hope this helps


    American cars are generally cheaper to insure than non-American ones
  9. I agree it is a rip-off when comparing US rates. I had to pay 2.5 time I was paying in US. This is even after I provided my driver abstract and Insurance letters. Auto Insurance in Canada have rip-off insane rates comparing US.
    meetme_here likes this.
  10. If you think insurance in Canada is expensive, try looking at what it costs in the UK :D :D :D
  11. Hi,
    My question is which insurance company in Ontario accepts no-claim letters from another country?

    Thanks for sharing
  12. I heard Qorax said Ontario does not give discount base on no-claim letters from another country.
  13. Given that the Car Insurance for Newcomers is expensive but to get the cheapest among them there are a few additional factors for Ontario. Eventually its all about risk. The higher the risk the higher will be your quote.

    - Area you live in the GTA (Brampton, Scarborough, downtown Toronto etc. will get you a more expensive quote). For the last few months Markham, ON is getting a cheaper quote for most insurance companies.
    - The model, year and make of the car also has an effect. The older the car is the lower the insurance. But if it is more than 10 years old then some insurance companies might refuse to insure also.
    - Opt for winter tires and keep the mileage low. This will keep the quote lower.
    - If you have family and kids then it could lower the quote also.
    - If you are part of any professional association (like doctors, PEng, accountants, Government employees, MNC employees etc.) then your quote will be a lot lower.
    - How well the insurance company is doing in terms of claim versus subscriber ratio. How much profit they are making? If they are not meeting their financial targets then the insurance quotes are generally higher for that company. Check their stock rates to get an idea.
    - Some companies offer combining with Tenants or Home Insurance package which makes the car insurance cheaper. I am paying less for the total package as compared to only car insurance. Strange but that is a fact!

    The above factors are not always applicable. Every insurance company has it own algorithm to evaluate the risk.

    Nowadays, I have found that TD's Meloche Monnex is offering the cheapest car insurance for newcomers if you live in Markham. Also try RBC, they might also offer better rates.

    Hope the above helps!

  14. My best quote so far is from a Desjardins (sP?) general insurance in Ontario. It's only about $200 a month, at $100 more a month for our two cars and I do have a accident, low claim (under $1500) from 5 months ago otherwise a claim/toicket/blemish free for 15 years record. I had tried at least 5 other places and all were at least $50 more a month.
    They did ask about our records and claims, ect not sure how it did actually play in though.

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