Automobile Insurance

Like any other type of insurance, automotive insurance is a form of financial protection for you and your family. The premium you pay to the insurance company ensures you'll be covered financially, should anything ever happen. Simply put, insurance is a way to share risk. When you buy insurance, you're buying financial protection and peace of mind. Your insurer uses the premiums of thousands of other vehicle owners to pay for the financial loss of those who are involved in collisions and other mishaps.

The deductible is what you are responsible for paying as part of the overall insured loss. Usually, the amount is $500. This means that you have to cover $500 of any repair bill and the insurance policy pays the rest. Any damage that costs less than $500 is your responsibility. There is no deductible in the case of damage incurred by fire, lightning, or theft.

Click here to find out which car is better to keep your insurance premium lower.

The insurance company will pay for the repair or replacement of your vehicle, minus the deductible, in the condition it was before it was damaged. They will only cover the part of your car that was actually damaged. If you make other repairs to your vehicle not directly related to the accident, you are still required to contribute financially. During repair, the mechanic may use reconditioned or used parts. These parts must be of the same quality as the originals and must not adversely affect the operation of the vehicle. Any extra work done on the vehicle not directly related to the damage is your financial responsibility.

As the old adage goes, "As soon as you drive a new car off the lot, it depreciates 40%." However, you can insure a new vehicle against depreciation for the first two years of ownership. For the incredibly low annual fee of $25, you can protect the full retail value of your car and insure it against losses incurred from theft, damage and depreciation. You won't get this kind of valuable information voluntarily if you were to deal directly with a call centre or direct writer. This is just one example of the inside edge you get with the expertise of Neziol Insurance Group.

Collision coverage is optional in Ontario. If you drive an older vehicle, you may wish to drop collision coverage to reduce your insurance premium. Most people drop collision coverage once their vehicle is 10 years old or if the vehicle value is less than $3,000. Since everybody's situation is unique, call one of our professional sales staff for your own personal evaluation.

Liability insurance protects you in the event your vehicle is involved in an 'at fault' auto accident. If you caused any bodily injury, death, or property damage to anybody your liability insurance will protect you from any successful lawsuit. We now recommend at least $2,000,000 of coverage due to the increase in courts awarding victims over $1,000,000.

More than anything else, your driving record is the most important factor affecting your insurance rates. The insurance company also considers some other aspects including: type and age of vehicles, whether the car is used for business or pleasure, where and how far you drive, and how many people use the vehicle.

Your record of moving violations is used by most insurance companies as an indicator of how responsible of a driver you are. The more you seem at risk, the higher premiums you pay.