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How To Buy First Time Car Insurance in Ontario (Step-by-Step)

How to buy first time car insurance Ontario | KBD Insurance
Curtis Killen

As president of KBD, Curtis aims to simplify insurance for his clients. He’s helped lead KBD to become one of Canada’s fastest 400 growing companies according to the Globe & Mail.

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So, you’re a first time car insurance buyer in Ontario?

You’ve come to the right place.

We put together a step-by-step guide to make things easy for first time car insurance customers in Ontario.

We’re breaking down what you need to know, while keeping out the fluff.

Not a big reader? 🤓 Don’t have time? Fair enough.

Give the KBD Ontario team a call for a quote instead. The process takes about 3-5 minutes.

We’ll make it easy and walk you through buying car insurance for the first time.

With that covered, if you do want to prep before making any calls – keep reading to learn our best tips.

Jump ahead to learn:

How much is insurance for a new driver in Ontario?

There’s no way around it – first time car insurance in Ontario is expensive.

This is especially true when it comes to insurance for a new driver.

For example, new drivers in Ontario pay an average of $5000 a year if they’re insured on their own policy.

If you think that number is high, you’d be correct. ✅

To compare, the average car insurance policy in Ontario costs approximately $1528 a year in 2022.

So unfortunately, new drivers actually pay the highest car insurance premiums in Ontario.

But if you fall into the new driver category, there’s still hope to lower your premium.

Keep reading to learn ways to save as a new driver, and how to buy first time car insurance in Ontario.

Why is insurance so much for new drivers?

Buying car insurance is a lot like building credit history: you have to have good credit to get access to the perks.

Likewise, brand new drivers pay high premiums because car insurance companies have no history to base their rates off of.

Until you build your history, you’ll have to stick with the economy equivalent of car insurance, or worse – high risk car insurance.

So, a lack of history is a strike against you in the eyes of insurance companies.

Plus, new drivers are often under 25 years old – which puts them into a higher paying age group for car insurance.

To note: If you’re a first time car insurance customer, but you’re not a new driver, keeping a clean driving history can help you get a lower rate.

How to buy first time car insurance in Ontario? (Step-by-Step)

Car insurance is mandatory in Canada and throughout Ontario, so you need to get it before hitting the road.

But do you know how to buy car insurance in Ontario?

Here’s our step-by-step guide to find the best rates and coverage.

Step 1) Gather your info

Your broker or insurance company will need a few things from you to process a first time car insurance application.

Before getting a quote, get this information together:

  • Your driver’s licence
  • The make & model of your car
  • Vehicle specs, including security features and mileage
  • Personal information (birthday, marital status, etc.)

Once you have this ready to go, you can start shopping for your first car insurance policy.

Need a car insurance quote asap? Give our Ontario team a call.

Step 2) Shop around & compare rates

Next, you’ll want to shop around to get multiple quotes. You can do this online or over the phone.

BUT, we will say: For first time car insurance buyers, we recommend getting advice over the phone.

That way, your insurance broker or agent can thoroughly explain everything to you.

You’ll have to answer questions about your personal information to build your profile, so make sure you’re prepared with all your info.

After collecting a few quotes, make sure that both the price and coverage amounts match up to make an accurate comparison.

This is a good way to ensure that you get the right coverage, and that there are no unwelcome surprises if you have to make a claim.

For example, in Ontario, mandatory car insurance coverages include:

  1. Liability coverage
  2. Accident benefit coverage
  3. Direct compensation
  4. Uninsured automobile coverage

But depending on your situation, you may want to include additional car insurance coverages like:

  1. Collision
  2. Comprehensive

Pro tip: If you’re leasing or financing the vehicle, you’ll need to insure the car “both ways,” which means that you’ll be covered for any type of accident.

For example, if you can’t afford to replace your vehicle if you’re in a wreck, it’s a good idea to be covered with these additional policies.

Ask the car insurance broker or company to walk you through exactly what you need.

Give the team at KBD a call.

Step 3) Decide which company to go with

Once you’ve narrowed down 2-3 policies, it’s time to make your decision.

If the policies are all similar in coverage and price, it’ll come down to a few deciding factors.

Here are a few things we recommend considering when choosing an insurance provider:

  1. Do you want a personalized service?
  2. Do you want help if there’s a disputed claim?
  3. The insurance company’s payout history
  4. Company reputation
  5. Check out their Google reviews

If you want a personalized service and help if you need to dispute a claim, a broker is the way to go.

Not to pat ourselves on the back, but here’s a quick clip on why our clients like working with us 😉:

You can also check our Google reviews for good measure.

Need a car insurance quote? Give our Ontario office a call.

Step 4) Purchase your car insurance policy

There you have it. You’re now all set to purchase your first car Ontario car insurance policy.

Give your car insurance broker or company a ring to finalize your purchase.

Once you have your policy in place, make sure to keep a copy of your proof of insurance, licence and registration with you while driving.

These are all documents that you’re required to have on hand when driving in Ontario.

That’s it. You’re officially ready to go out on the road.

Pro tip: Once you’ve bought your policy, note the renewal date in your calendar so that you remember to be updated on the best car insurance rates every year.

Ready for your car insurance quote? Give us a call.

How to save money on car insurance as a new driver

New drivers pay the highest car insurance premiums, especially if they’re listed on their policy alone.

Like we mentioned above, you can end up paying $5000 on average.

Here are a few smart ways to get cheaper car insurance rates as a new driver:

  1. Drive responsibly: New drivers don’t get any leeway with car insurance companies, so you’ll want to be on your best behaviour. Stay out of accidents, otherwise you’ll be stuck with super high fees.
  2. Be listed as a secondary or an occasional driver: If you’re a teen or young driver, you can be added to your parent’s car insurance policy, as long as you aren’t the primary driver of the vehicle. This will save you money while you get more driving experience. However, this only applies if you’re actually an occasional or secondary driver. If not, you could risk having your claim refused if you get into an accident.
  3. Don’t make claims: If you can afford to pay out of pocket for a fender bender, do it. Remember what we said about good credit history? Car insurance works the same way, so if you want to keep your rates down, drive safely, and keep your record clean.
  4. Download telematics: Telematics is an app-based GPS system that insurance companies use to track your driving behaviour on the road. On average, good drivers save 9-15% when they sign up. Just make sure you’re a safe driver, because bad drivers are penalized. And if you’re not a safe driver, consider becoming one! Reckless driving will eventually catch up to you.

You can also check out our video on tips to save money on your car insurance:

These are the top 3 things that first time car insurance customers in Ontario should know.

Give your car insurance broker a call to see if there are any areas that you can save in your policy.

How long does it take to get car insurance in Ontario?

Q: Once you get your car insurance policy, how long does car insurance take to activate?

A: Your car insurance will kick in as soon as your payment is processed.

Car insurance takes effect immediately, so you can be insured and ready to drive within 10-15 minutes.

Just make sure to have all the required proof of insurance documentation with you when you hit the road.

Ready to get some car insurance? Call us.

Wrap-up

Buying car insurance for the first time is easier than you think.

Hopefully this first time car insurance buyer’s guide has answered your questions.

But if you want someone to walk you through how to get car insurance for the first time, give us a call.

We’ll find you the best car insurance rate and coverage.

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