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Auto insurance in Guelph

Like all parts of Canada, car insurance in Guelph is mandatory. Although there are minimum requirements, many drivers buy additional insurance beyond the legal minimum. Extra insurance provides better protection against liability and financial risks related to driving, such as property damage and injuries.

Ontario has a no-fault insurance system, meaning all drivers involved in accidents file claims with their own insurance providers to cover their losses.

Mandatory Guelph car insurance coverage

Guelph drivers must follow Ontario's traffic laws and carry the minimum amount of car insurance. The types of auto insurance required by law in Ontario are:

• Third-party liability insurance:

  Liability insurance protects you if you are sued for property damage, injuries, or the death of another person. Ontario's minimum third-party liability coverage is $200,000, but you can increase it to as much as $2 million. Insurance professionals now recommend upgrading your policy to include at least $1 million in coverage.

• Statutory accident benefits insurance:

  This coverage assists with extra medical costs (such as supplies), rehabilitation services, and care from attendants. It also provides income replacement and caregiver benefits if your injuries prevent you from working or taking care of a dependent.

  • Standard coverage for accident benefits:

    • $3,500 is available per person for medical care for minor injuries.

    • $65,000 per person for combined medical and attendant care for severe injuries for up to five years (an insurer may extend the benefit period for children).

    • $1 million per person for combined medical and attendant care for catastrophic injuries.

• Direct compensation property damage insurance (DCPD):

  This type of coverage, also known as DCPD, protects you when your vehicle or items inside your car are damaged. Your insurance provider will compensate you directly for a loss, even though another person may be at fault. You don't have to sue the other person in court to receive compensation.

  DCPD is still automatically included in standard auto insurance policies in Ontario, but drivers can apply to remove it as of 2024. Opting out of DPCP can reduce the cost of insurance premiums. However, it means you are taking a significant component of "no-fault" insurance out of your policy. With DCPD, drivers are reimbursed for vehicle repairs, loss of a vehicle or its contents, or a replacement vehicle, among others. Without DCPD, you must pay out of pocket to repair or replace your car. Removing DCPD may save you money in the short run but could cost you more in the long run.

• Uninsured vehicle insurance:

  You or your family will receive protection under this provision if you are in an accident with a car without insurance. If you are injured or killed, you and your family will receive compensation, even though the at-fault driver's liability insurance isn't enough to pay for the damage you incur. The money paid out by this coverage can go toward medical costs, repairing property damage, and legal fees.

Optional Guelph car insurance coverage

Drivers in Guelph often look to take on extra coverage beyond the mandatory options. You can choose to increase the coverage amounts for the standard coverages in your policy or purchase additional coverage that protects you from other risks — or some combination of both.

Some of those additional coverages may include:

• Extra third-party liability coverage:Legal damages often exceed $200,000, the minimum amount of liability insurance you must purchase. You can buy at least $1 million to $2 million in third-party liability coverage for more protection.

• Additional accident benefits coverage: Standard coverage for medical care is $65,000 for severe injuries and $1 million for catastrophic injuries. However, healthcare can get expensive when serious injuries occur. Insurance experts recommend increasing your benefits to as much as $1 million for medical care and $3 million for attendant care.

• Collision coverage: If you cause a collision with another car and are responsible for the accident, this coverage will help pay to repair or replace your vehicle. It carries a deductible, and your insurance premium will rise at renewal if you claim this coverage.

• Comprehensive coverage: This coverage pays for damage caused by non-collision accidents — fire, theft, vandalism, falling objects, wind, and hail, for example.

• Stronger coverage for collisions with underinsured drivers: Adding OPCF 44R, the Family Protection Endorsement, enhances your third-party liability insurance. It's designed for instances where someone is in a collision with a driver who has less liability coverage than them, and the accident causes severe injury or fatalities. OPCF 44R boosts the at-fault driver's coverage up to your third-party liability coverage level.

• Loss of use coverage: Loss of use coverage helps when you need a rental car while yours is being repaired. This coverage reimburses you for the cost of that rental. The OPCF 20 endorsement, or Coverage for Transportation Replacement, adds this loss of use coverage to your policy.

• Borrowed and rented vehicle coverage: Your Guelph auto insurance policy can be extended when renting or borrowing a car. To do this, you must add OPCF 27, Liability for Damage to Non-Owned Automobile(s).

• Leased vehicle coverage: If you lease a vehicle, you need to include an endorsement called OPCF 5 in your auto insurance. This endorsement covers rented or leased vehicles and extends coverage to the specified lessees. It's specifically for long-term leases, not short-term car rentals.

• New vehicle replacement: All cars depreciate as soon as they're driven off the lot. New vehicle replacement coverage ensures your insurance company will not factor in any depreciated value if it's damaged in an insurable peril. The Removing Depreciation Deduction endorsement, OPCF 43, offers this type of protection.

Even more endorsements are available to Ontario drivers than are listed here. If you want help to clarify your coverage needs, try getting a free car insurance quote on LowestRates.ca. We'll help you find the lowest premium, and a licensed insurance professional will contact you to finalize your rate and answer any questions.

Factors that determine your car insurance rates in Guelph

Auto insurance companies grade you on a number of variables to determine your premium. How low your rate is depends on how well you score. It may not seem fair, but here's what they assess you on and why:

• Your driving experience: Insurance companies will weigh risks, and someone with more experience behind the wheel is likely less of a risk than a new driver with little to no experience.

• Your driving record: Some drivers are safer than others. Having and maintaining a clean driving record with few or no infractions is rewarded with a lower auto insurance premium.

• Your age and sex: Guelph auto insurance companies (along with all others) will discriminate based on age and sex. You are considered an even greater risk if you are a male and under 25. According to the Insurance Institute for Highway Safety (IIHS), male drivers are more likely to speed, get behind the wheel while drunk and neglect wearing a seat belt than their female counterparts.

• Your vehicle: Guelph auto insurance companies also consider the risk factors of cars themselves. Higher-end models can be more expensive to repair and replace, while lower-end models are cheaper. Also, consider vehicles with safety features, which would help contain your premium.

• Where you live (and park your car): Neighbourhoods with high rates of car thefts or heavily congested areas would pose more risk and your auto insurance rate will increase if you reside there.

Car insurance rates for Guelph seniors

Adults between the ages of 50 and 70 get some of the lowest car insurance rates in Guelph. After age 70, you might see your rate begin to climb. If this happens to you, it may be time to shop around for new automobile insurance in Guelph.

Car insurance rates for students in Guelph

Finding affordable car insurance for new drivers in Guelph isn’t easy. Young people pay, on average, the highest insurance premiums of all drivers.

While it can be challenging for new drivers to find cheap car insurance in Guelph, we’ve found that the demographic that finds the most savings on LowestRates.ca are young drivers — the more you’re expected to pay, the more dramatic the savings you can find when you compare Guelph car insurance quotes.

Car insurance for new immigrants in Guelph

If you have had car insurance in the past, ask your previous insurance company to provide a reference to your new Ontario insurer. This will improve your chances of lowering your car insurance rate.

Car insurance for high-risk drivers in Guelph

Having traffic convictions or an extensive claims history will put you in the high-risk category with most car insurance companies.

It’s hard to find cheap auto insurance rates in Guelph as a high-risk driver. However, it’s still possible to get coverage. LowestRates.ca provides quotes from car insurance companies that specialize in outfitting high-risk drivers with insurance coverage.