Most of us there enjoy the car ride, and at the same time, we have to pay for our enjoyment in the form of tax, fuel, maintenance and not to mention the cost of car insurance Ontario, Canada. So motorists have a reason to be pleased to know that after years of rising prices for car insurance plan premiums have started declining. Still, the fall is not in tune with the rising premium rates. That makes it imperative not to make a mistake still takes a big bite out of your financial budgets, especially when you have more than one car or vehicle.

car insurance

So it becomes important to understand and know about the car insurance market, different policies that companies are offering, to make a right and prudent selection. And for a right selection, you have to know about the:-

The legal requirements: - First of all it is important to know and understand that, don't drive your car without insurance, it’s against the law. If you own a vehicle or car, it must be insured and taxed unless and until your vehicle is declared off the road. And anyone found guilty of flaunting the rules will be charged with a fixed penalty notice and it may result in vehicle seizure and destruction.

Risk factors: - We all know insurance is all about risk, the riskier you are, the more expensive cover you need. Before quoting a premium for it, the insurer considers a lot of factors and your age is one of the most critical indicators of the risk attached. It is a common belief that older motorists have fewer accidents as compared to young motorists. And this is the reason young motorists are paying significantly more premium than the average motorists.

The risk is also associated with gender, and this is the reason men are considered to be riskier as compared to females. Men are looked up to make an expensive claim, while females make general claims due to a lower speed that requires less repair work. And due to these reasons, women car insurance is comparatively cheaper than male. Further, some postcards and occupations are cheaper than others. The type of car you drive also contributes largely towards the premium of your insurance.

Rewarding safe drivers: - Insurance companies reward the careful drivers, and one of the best ways to mitigate the cost of car insurance is to build up no claim discounts. If you have managed no claim for five consecutive years, it will allow you to knock 75% off your insurance premium.

Types of car insurance: -It has three different levels of covers. Third party car insurance is the most basic and requires minimum legal requirements. The policy is used to pay for the damages sustained by the third party, their property or their vehicle if you are at fault.

Third party fire and theft car insurance is a step ahead and includes cover in case your vehicle is damaged by fire or stolen.

Comprehensive car insurance that covers all the things mentioned above, plus it covers you and your car for any damage or injury, even if you were at fault.

You have a variety of options while making a selection of policy to ensure that you have a good coverage when it comes to making a claim.