Insuring a car

[rogier21]

Hello all,

This summer I will be landing in Calgary, and I need a car. I know insurances are pretty high so I want to buy a good deal. A car around 10k (yr 2010), I found insurances online for about 2500$ (i'm from '85). I have no past insurance record because I made some damages which didn't get me any level of "no accidents" I can take with me.

Are there local insurance companies that will give you a good deal?

And might it be better to buy a brand new car with payment terms so that I can build up some credit history?

 

[rg2012]

Hello all,

This summer I will be landing in Calgary, and I need a car. I know insurances are pretty high so I want to buy a good deal. A car around 10k (yr 2010), I found insurances online for about 2500$ (i'm from '85). I have no past insurance record because I made some damages which didn't get me any level of "no accidents" I can take with me.

Are there local insurance companies that will give you a good deal?

And might it be better to buy a brand new car with payment terms so that I can build up some credit history?

Insurances rates in Canada are typically pretty high. Compounded by the fact that you are new (your driving history may or may not be acceptable in Canada), the rates stay high for a while. One of the things you can consider finding out is if your employer has any group insurance options. That way you can lower your premium. I do just that and its much lower than the normal rates.

 

[newtone]

I dont understand for the life of me why the hell insurance rates in Canada are soo high, we only have a population of 33 million sparsely spread out through 10 million square kilometers as opposed to bangladesh which has a population of 146 million occupying 147 thousand square kilometres, the likely hood of you being struck by lightning is higher. What a scam! talk about legal organized robbery

 

[rg2012]

I dont understand for the life of me why the hell insurance rates in Canada are soo high, we only have a population of 33 million sparsely spread out through 10 million square kilometers as opposed to bangladesh which has a population of 146 million occupying 147 thousand square kilometres, the likely hood of you being struck by lightning is higher. What a scam! talk about legal organized robbery

Few reasons:

* Fraud
* Not enough competition - its easy when there are less number of companies to be able to "enforce" larger permiums. Another example, is our cellphone/internet rates.
* Bad laws around insurance minimums
* Too many accidents (common in large cities).

I lived in the US before this. I used to pay (I'm not kidding), $555 per year for car and motorcycle combined. Of course, I have a squeaky clean record. Over here I pay close to $2500 per year for one car.

 

[newtone]

Few reasons:

* Fraud
* Not enough competition - its easy when there are less number of companies to be able to "enforce" larger permiums. Another example, is our cellphone/internet rates.
* Bad laws around insurance minimums
* Too many accidents (common in large cities).

I lived in the US before this. I used to pay (I'm not kidding), $555 per year for car and motorcycle combined. Of course, I have a squeaky clean record. Over here I pay close to $2500 per year for one car.

I totally believe you, its much cheaper in USA but here are my concerns about the points you've raised

1) Fraud- I am sure it happens in USA too, Canada aint the only country where all con-men and criminals reside happily ever after.
2) Not enough competition- Whats stopping American companies from coming here and offering cheaper rates?
3) Too many accidents- so Canadians dont know how to drive? atleast in Ontario, whats the point of having all this safe drivers course and over that you have three levels to pass G1, G2, G, same thing with motorcycle M1, M2, M.

If anything insurance should be cheapest in Ontario. I can understand car insurance being expensive so that they can encourage people to use the subway, have you seen the state of subway lines in this cosmopolitan city Toronto, it reminds me of pipes underneath my sink cabinet. 2 lines North South, East West. $3 to travel one way when minimum wage is $10.25/hour. Population in the city is increasing, gridlocks are increasing, pollution is increasing, and hybrid cars are not the answer. Cant believe they call this a developed country.

 

[rg2012]

I totally believe you, its much cheaper in USA but here are my concerns about the points you've raised

1) Fraud- I am sure it happens in USA too, Canada aint the only country where all con-men and criminals reside happily ever after.
2) Not enough competition- Whats stopping American companies from coming here and offering cheaper rates?
3) Too many accidents- so Canadians dont know how to drive? atleast in Ontario, whats the point of having all this safe drivers course and over that you have three levels to pass G1, G2, G, same thing with motorcycle M1, M2, M.

If anything insurance should be cheapest in Ontario. I can understand car insurance being expensive so that they can encourage people to use the subway, have you seen the state of subway lines in this cosmopolitan city Toronto, it reminds me of pipes underneath my sink cabinet. 2 lines North South, East West. $3 to travel one way when minimum wage is $10.25/hour. Population in the city is increasing, gridlocks are increasing, pollution is increasing, and hybrid cars are not the answer. Cant believe they call this a developed country.

In some ways I agree. But you would be surprised by the scale of small claims fraud in Canada. Search for it.

There are plenty enough laws that prevent competition from the US coming in that easily. Why do you think, for example, the big 3 in telecom/cable are having such a good ride? We aren't that much of a capitalist country compared to the US. We are more socialist (take a look at our welfare program and how easily its exploited).

And yes, we in Canada really don't drive that well. I'm only saying because I've lived in 4 countries my life and I know the difference in driving patterns. We aren't good drivers....

 

[newtone]

hahaha, well said

 

[steaky]

2) Not enough competition- Whats stopping American companies from coming here and offering cheaper rates?

Auto insurance in BC is pretty much a monopoly.

 

[newtone]

So let me get this right:

Insurance is Monopoly
Phone companies are Monopoly
Banks are Monopoly

Can we not rename Canada to Canapoly, I would love to see that change. Does anyone know how I can make money from these Monopolies? I already have substantial investments in all 5 Canadian banks. Need to increase my wealth cause I need bigger share of all this action

 

[rogier21]

Banks are not monopoly I think because there are plenty and the mortgage rate is quite low for Canada.

Insurance could be a big market but you would have to study the law carefully, I don't understand how insurance companies apparently pay out so easily.

Internet is a good business but remember the distances in Canada, it would cost you fortunes to put cabling alone. Look at Google, they are still thinking if Canada is investable enough.

 

[newtone]

I think Banks in Canada are a monopoly any other Banks trying to get in will have to go through the thick bureaucratic red tape. I always wondered why Canada had two thick vertical red lines on the outer edges of its flag, it now makes sense. The red maple leaf protected in the center from outside influence.

 

[ADUFE]

I dont understand for the life of me why the hell insurance rates in Canada are soo high, we only have a population of 33 million sparsely spread out through 10 million square kilometers as opposed to bangladesh which has a population of 146 million occupying 147 thousand square kilometres, the likely hood of you being struck by lightning is higher. What a scam! talk about legal organized robbery

Very well said! That's ALL it really is; legalized broad daylight robbery!!!

 

[ADUFE]

[quote author=newtone link=topic=133462.msg2052103#msg2052103 date=hat you have three levels to pass G1, G2, G, same thing with motorcycle M1, M2, M.

If Cant believe they call this a developed country.

Me too! Lolz!!

 

[ADUFE]

In some ways I agree. But you would be surprised by the scale of small claims fraud in Canada. Search for it.

There are plenty enough laws that prevent competition from the US coming in that easily. Why do you think, for example, the big 3 in telecom/cable are having such a good ride? We aren't that much of a capitalist country compared to the US. We are more socialist (take a look at our welfare program and how easily its exploited).

And yes, we in Canada really don't drive that well. I'm only saying because I've lived in 4 countries my life and I know the difference in driving patterns. We aren't good drivers....

I have also lived in 3 countries and have been to half-a dozen more , where I've seen FAR worse driving, yet car insurance in these countries is NOWHERE as high as what obtains here. In fact, in some of these countries insurance is not even compulsory except for bank-financed vehicles.

 

[rogier21]

I have also lived in 3 countries and have been to half-a dozen more , where I've seen FAR worse driving, yet car insurance in these countries is NOWHERE as high as what obtains here. In fact, in some of these countries insurance is not even compulsory except for bank-financed vehicles.

I agree, I have been driving in a few countries, also in eastern Europe and Russia. I cannot imagine that Canada has such a high record of accidents that insurance costs 10-100 times as much as other countries!

If you look here:
http://en.wikipedia.org/wiki/List_of_countries_by_traffic-related_death_rate
You see it is bad, but not that bad. US has less deaths than Canada.

In Netherlands I pay for FULL insurance with 3 years new car warranty, and no insurance record around 64 euro per month...