Frequently Asked Questions – Auto Insurance – Premiums

Consider these money-saving tips:

When buying a car and shopping for insurance:

• Consider insurance costs when shopping for a car. The type of vehicle you drive affects your rates
• Wait for your current auto insurance policy to expire before you change companies. A penalty may apply if you cancel your policy mid-term
• Compare rates, protections, discounts and services offered
• Compare access to professionally trained insurance personnel
• Request a free, no-obligation quote from OTIP

When setting up or reviewing your policy:

• Choose higher collision or comprehensive deductibles if you have the financial resources to do so
• Don't buy collision protection on an older car with a market value that is out of proportion to the cost of the coverage
• Eliminate duplicate coverages or services if you currently have equivalent or better protection with other health or insurance plans
• Inquire about discounts, such as a multi-line discount for insuring your home and car with OTIP

When your policy is in force:

• All drivers insured under your policy should take extra caution to protect their driving record
• Protect your insurance record and avoid untimely cancellation by paying your premiums on time
• Avoid filing minor claims if you can afford to pay for the damage out of existing resources

Yes. Driving convictions, including seat belt infractions, may affect your rating in several ways depending on the number and type.

To be eligible for our Six Star or Nine Star preferred rating, you must have a clear record or no more than one minor driving conviction. Additional convictions will result in the loss of the preferred status and the discounted premiums. So, in addition to the fine you pay, your insurance costs can go up.

It usually makes good financial sense to add your teen as a driver to your existing policy. Even though your rates will go up overall, they'll still be lower than if your teen were to take out a policy on his or her own. If your teen does not own his or her own car they will be added to your policy as an occasional driver.

Ways to Save

If your son or daughter has completed graduated licensing and driver training, he or she may be eligible for several discounts. If your child goes away to college or university and the car stays at home, you are eligible for a 40% discount off of their premium, provided that the post-secondary institution is more than 100 miles away.

In general, it's best to let OTIP know right away when your teen gets a driver's license. Your insurance company could deny a claim if your teen is involved in an accident, based on the grounds that you didn't inform them of the new driver.

Actuaries and statisticians who have studied the claiming behaviour of people involved in accidents have long known that people who have either had an accident or received a ticket recently are more likely to have another accident in the next couple of years than people whose recent driving record has been incident free.

Insurance companies use this information not to punish people who have had an accident, but to charge them the premium that most accurately reflects their likelihood of having an accident. People who are more likely to have accidents should reasonably be expected to pay higher premiums.