Automobile Insurance in Canada
In Canada, one car was stolen even six minutes in 2010. This sobering statistic is sure to give you the impression that car theft is a major problem in this country, but the truth of the matter is that these types of crimes are actually on the decline. While approximately 254 cars were stolen per day in 2010, that number pales in comparison with the average number of vehicles that were stolen per day in 2007. During that year, around 400 cars were stolen per day. According to Kanetix, car theft has been on the decline throughout Canada for some time. Find out why that is and learn more about car theft in Canada by checking out the following information.
A Steady Decline in Car Thefts
Between 2001 and 2010, the number of car thefts in Canada per year decline by 45 percent. Approximately 170,000 vehicles were stolen in Canada in 2001 while around 93,000 were stolen in the country in 2010. The total number of car thefts declined in each province, with the exception of Newfoundland and Labrador, where the number of automobile thefts actually increased by approximately 30 percent between 2009 and 2010. The largest decrease happened in Prince Edward Island, where the total number of car thefts dropped by around 30 percent.
Provinces with the Highest and Lowest Car Theft Rates in Canada
For many years, Manitoba led the country when it came to the total number of car thefts per year. That was because automobile theft was rampant in Winnipeg. That all started to change with the implementation of a multi-agency auto theft prevention strategy in 2005. In fact, the total number of thefts in the province has dropped by approximately 15 percent.
These days, Saskatchewan has the dubious honour of having the highest number of car thefts in the country. It earned the top slot in 2010, even after a 10-percent drop was taken into account. Nunavut and the Northern Territories are also at the top of the list in terms of the total number of auto thefts.
If you want to live in a province where it’s extremely unlikely that your car will be stolen, you need to move to Prince Edward Island. This charming province not only enjoyed the largest decrease in the total number of car thefts, but it holds the title of having the lowest number of auto thefts right now. Despite the fact that the total number of car thefts increased in Newfoundland and Labrador, the province also enjoys one of the lowest auto theft rates in the country. Nova Scotia rounds out the list.
Why are Auto Theft Rates Plummeting?
There are many possible reasons for the steady decline in automobile thefts in Canada over the past 10 years. More new vehicles are coming equipped with top-notch vehicle security features than ever. While people aren’t a lot more likely to have anti-theft devices installed, the ready availability of new vehicles that have immobilizers and other features has apparently discouraged many would-be car thieves.
Another reason that the total number of car thefts has been decreasing is that auto insurance companies are offering significant financial incentives to drivers whose vehicles are equipped with state-of-the-art anti-theft devices. Once again, many people won’t voluntarily have such devices installed. If it means saving a lot of money on car insurance, however, more people are willing to invest in such devices.
There is no question that law enforcement efforts are playing a huge role in the steady decrease of auto thefts in Canada. As mentioned above, the city of Winnipeg has slashed its car theft rate with the implementation of a multi-agency auto theft prevention strategy. Cities like Vancouver have been making effective use of the Bait Car program, in which police-owned vehicles are set up to tempt car thieves into engaging in auto theft. There are many other similar efforts happening in other parts of the country, and they seem to be working.
Additional Car Theft Statistics
It’s definitely heartening to know that automobile theft is declining in Canada. That doesn’t change the fact that it continues to be one of the least likely crimes to be solved by police. In 2007, for example, a mere 11 percent of automobile thefts resulted in a specific person being accused of the crime. The majority of cars that are stolen in Canada are stolen from public places like parking lots. Approximately one-third of all cars that are stolen are taken from private areas like driveways. Auto theft is most likely to be carried out by people who are between the ages of 15 and 18. Finally, although the Honda Civic is the most popular car in Canada, the Toyota Venza is the one that is most often targeted by thieves.
As you can see, auto theft continues to be an issue in Canada. It is on the decline, though. With any luck, that trend will continue.
The high cost of car insurance can take up a huge portion of any family’s budget. If you have had your salary recently reduced, paying for auto insurance can eat up a bigger portion of your budget. Fortunately, there are a lot of options for families who need to reduce their insurance costs. The following tips are worth trying for anyone who needs to save a little money.
Start by shopping around at several different auto insurance companies. Car insurance rates will vary a lot between different companies. Furthermore, insurance companies change their rates a lot between various geographic locations. Even if you have recently looked around for lower rates, it may still make sense to check again. Be sure to check again if you have recently moved or changed the vehicles that need to be insured.
After shopping around, look into bundling all of your insurance policies together. Most auto insurance companies offer a discount to their customers who insure multiple cars or recreational vehicles with them. If you only have a single car, think about keeping your other policies such as homeowner’s, life, or renter’s insurance with the same company. Multiple policy discounts are usually the biggest discounts offered by most insurance companies.
Since you’re already on the phone or internet looking for discounts, go ahead and ask about increasing your insurance deductible. Increasing a deductible from $500 to $1000 can save you money off the premium. This is because an insurance company does not have as much liability with policies that have higher deductibles as those with lower deductibles. Of course, make sure you have enough in savings to cover a higher deductible if you are in an accident. In general, though, it is likely that you will not claim small amounts of damage to your vehicle. Therefore, increasing your insurance deductible really shouldn’t affect your budget too much.
After checking out how much it is possible to save by increasing your deductible, it also makes sense to inquire about discounts for behaviors that can easily be changed or that already occur. Auto insurance companies typically offer their clients discounts for all sorts of activities. Currently, auto insurance companies are offering discounts to customers who regularly wear their seatbelt, install a car alarm system, have airbags in their car, change their oil regularly, and are considered by their state to be good drivers. Remember that discounts can vary a lot between companies. There are also discounts offered for personal behaviors such as having good grades, not driving at night, and not drinking. Unfortunately, most insurance companies will not provide you with a list of what discounts are offered, so you will have to talk to an insurance agent in order to find out what is currently being offered.
After you subtract all of the available discount that you and your family qualify for from your premium, you should have an affordable policy. If you don’t, then it is probably time to think about getting a car that is cheaper to insure.
In general, the auto insurance premium for a small, cheap, used car is less expensive than insurance for an expensive sports car. If you have a few accidents on your record, insuring a more expensive car can become very cost prohibitive. Downgrading your car for a few years may provide the relief in your budget that you need to make it through a rough patch.
It makes no difference who one is and what their assets are; it is a well-known fact among experts that there are really no correct answers when it comes to insurance questions. There is no specific code that informs one of how much and what kind of coverage is right and only the individual themself can really judge which policies are best for their personal needs. So it is understandable why people feel lost when it comes to insurance needs.Luckily, a large variety of easily accessible, free tools are now available that help one to figure out their insurance needs with a great deal of accuracy. The internet has been a tremendous help in this field. Almost all major insurance companies provide various tools that allow individuals to read up, analyze, collect quotes and compare policies. All this can be achieved without leaving the house or having to deal with pushy insurance agents. A lot of detailed information on insurance can be collected just by making an effort to educate oneself. Carrying out a self-assessment on insurance needs is really a simple process. One first decides what the most likely risks that one is exposed to are composed of and then should work backwards from that point to cover those exposures.
For Canadians, insurance needs are essentially made up to two things. First, cover for protecting an expensive item like a car or a house in case the unmentionable happens, and second, an income cover in case one is unable to work. Difficult a task as it is, one must be ready for all eventualities and one needs to plan for these things even when life is great.
Backtracking is the ideal way to make insurance self-assessments. One should just imagine the worst case scenario, and then determine if one can cover themselves in that eventuality or not. This kind of a stress test on major assets helps one to see more clearly. For example, what will happen if one does not have insurance and the house catches fire or the basement floods? These things are not beyond the realm of possibility. In such a case, will it be possible to pay for the clean-up out of pocket or buy a new home? If the answer is no, then insurance is necessary.
Of course, in many cases one may not find it necessary to replace an asset and thus can continue on without insurance. For example if one has a leisure boat which sinks in a storm, one can live without replacing it, and so insurance is not an absolute necessity. On the other hand, if the boat is used as a means to earn a living, then obviously it must be replaced and insurance becomes a necessity. It is this type of understanding and reasoning that one has to use when deciding what to insure and what to leave out.
Life insurance is one of the most complicated types of insurance to understand and determine the need for. Using the various analysis tools available online can help to make this process easier for individual situations. Just spending a little time using these tools and plugging in specifics like income, debts and future expenses, one can get free personalized proposals, which, if feasible, can then be refined through discussions with an agent. The best part is the fact that one is not limited to one quote or company; it is possible to get quotes for as many different policies as one desires and from as many companies as one wants. All it costs is time. It is possible to spend as little or as much time as one feels comfortable to fully understand the policy – there is no rush or pressure.
Insurance does not have to be complicated. It also no longer requires painstaking sessions with an agent whose sole interest is to push his policy. It only takes a little effort in educating oneself; all the tools are available and they cost nothing to use. Once all the information has been collected, then an agent can be approached and questioned on one’s own terms instead of being at his mercy.
Shopping for car insurance coverage may seem simple in the beginning, but can quickly become complicated as you customize your policy. You’ll need to consider your coverage limits, deductibles, and the types of endorsements to add. You’ll also need to uncover numerous details that can affect your rates and influence the way in which your claims are resolved. Buying auto insurance involves more than simply comparing quotes between insurers to find the lowest rates (though that remains a key part of the process). It involves a bit of investigative effort.
To help you get started, we’ll present five of most important questions to ask your insurer below. When your policy expires and the time comes to shop for better rates, review the following items. They will help to ensure you receive the coverages you need at the lowest possible rates.
#1 – “Which Endorsements Do You Recommend?”
Each person’s insurance needs are unique. Hence, your policy is bound to vary substantially from the policies of others. For example, you may find value in collision and comprehensive coverages while others may not. Or, you might prefer to add Family Protection coverage to your policy while others have little need for it. If you’re uncertain regarding the coverages you need, ask your insurer or broker for recommendations.
Your insurance company (or agent, broker, etc.) can help you to decide which endorsements to add to your policy. He or she will ask questions to clarify your circumstances so their recommendations are sound.
#2 – “What Type Of Discounts Do You Offer?”
Nearly every insurer offers at least one or two discounts to their policyholders. Most companies extend several. The discounts apply for a variety of reasons, such as having a car alarm installed in your vehicle, driving fewer miles than normal, and being a retiree. They vary by insurance company.
The important thing to note is that your insurer’s discounts may not be automatically applied to your policy. You might need to request them. There are many consumers who could enjoy lower rates simply by calling their insurers, and asking for every discount for which they are eligible.
#3 – “Do You Offer A Multi-Line Policy?”
This is a particular type of discount that deserves its own mention. Insurers that offer multiple lines of coverage (e.g. auto insurance, property insurance, etc.) often extend a discount to policyholders who combine them. For example, suppose you have car insurance at one company and property insurance at another. By consolidating them under a single company, you may become eligible for a multi-line discount. Ask your insurer or broker whether such a discount is offered.
#4 – “Do You Offer Accident Forgiveness?”
Accident forgiveness is a feature about which many people are unaware. It can be valuable in the event you cause an accident. Your insurer will protect your rates from rising as much as they otherwise would if this feature was unavailable.
It is important to highlight a few points about accident forgiveness. First, not all insurance companies offer it. Second, companies that do offer it typically do so only to policyholders with clean driving records. Third, you are not actually “forgiven” for an at-fault accident. Although your premiums will be protected from a substantial increase, the event will still appear on your driving record.
#5 – “How Will My Vehicle Be Valued If It Is Totaled?”
Before establishing a new policy with an insurance company, ask for clarification regarding how your car will be valued if it needs to be replaced. Some companies use the cash value of a vehicle. This is its value at the time of the event that prompted the claim (e.g. accident, theft, etc.). Other companies use an agreed upon value that is established between the insurer and policyholder each time the policy is renewed.
Ask for the details. Otherwise, if your car is totaled or stolen, the compensation check you receive from your insurer may be far lower than expected.
There are, of course, many other questions to ask your insurer, agent, or broker. The five above are among the most important. Whenever you shop for auto insurance, make certain you receive the answers you need.
