car insurance liability question...

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umesh840

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I want to get my car I recently purchased insured, and TD is asking me 350 a month, and I was wondering if I can reduce my insurance liabilty from the 1 million to $200,000 (which is the minimum that otario asks ), I am aware that I can reduce it with desjardins to $500,000, but I dont know if all companies can reduce it and can they all reduce it to the MIN $200,000?

I am aware that if I do switch to the minium that I will be held responsibilty for anything over that amount, but at this time I can not afford to pay $350 a month...
 
I'd shop around and see if you can get a better rate. Before you buy your next car, check the rate groups and try to buy a car where 1 mil insurance is affordable.
 
The lowest I got was $350 , thats being 19 and never insured, and clean record

Thats why I was just wondering if its possible for me to bring down my liability from 1 million to half a million or even 200,000...
 
It's possible although I'm not sure how much of a cost difference you are expecting. They may ask you to send the change in writing and signed stating that you understand the risks and all that before they endorse the policy. Have you looked at higher deductibles for collision and adding a DCPD deductible? If your car is leased or financed, your options on loss or damages coverages will be more limited.
 
You should be able to get the lower liability amount given that Ontario's requirement is for only $200,000 third party liability. However, you're not likely to see much that change in your premium, and you will open yourself up to a world of hurt on the off chance that you cause a crash and are sued for more than $200,000 by the other party.
 
turbodish said:
You should be able to get the lower liability amount given that Ontario's requirement is for only $200,000 third party liability. However, you're not likely to see much that change in your premium, and you will open yourself up to a world of hurt on the off chance that you cause a crash and are sued for more than $200,000 by the other party.
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^ Yepp. Its Ontario. People like suing each other.

Also, if you were to find a company to do that, you're maybe looking at saving $20 a month (guessing... but the difference will probably not be what you're expecting)
 
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PLau said:
^ Yepp. Its Ontario. People like suing each other.

Also, if you were to find a company to do that, you're maybe looking at saving $20 a month (guessing... but the difference will probably not be what you're expecting)
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I would guess that you're right. I think I went from one million to two million for a lot less. It's a complicated mix of lots of lower cost claims and a smaller number of big ones that set the rate. $4200 a year doesn't surprise me for a 19 YO. Sticker shock.

Not meaning to poke the OP with a stick but look at the course of his actions. He buys a car and then discovers his insurance is unaffordable. Is part of the rate based on the car?

The course of his actions says he makes assumptions. People that make assumptions tend to get into more trouble than those that are paranoid and think things through. This is possibly one of the reasons young drivers pay the higher rates.
 
hey OP what car is it?

i was paying $465mth with desjardins when i was 19, i had a toyota yaris hatchback 2dr (this was the cheapest i found) im now 21.
now i just transfer the car to my mom and let her buy her own insurance and i just drive it whenever i need to
now the monthly payment is zero, paid $2k at the beginning for the whole year:P

insurance is quite funny with mine, same premium for a Yaris(little family car) and a Audi TT(sport)
 
It was with td insurance, and the car was a 2004 honda civic si 2 door, decided to go with 1 million liability because it was just $200 difference between the 200,000 liabilty vs 1 million liabilty...

Civics are very expensive to insure, thinking about switching it to a honda pilot next month because they are asking $260 for that
 
Yes, you can drop to $200K liability coverage, but you might save about 10% at best. Not worth it at all. if you're going to do anything, get a beater car and don't bother with Collision coverage.

You're correct -- Civics are expensive to insure. We use the Insurance Bureau of Canada's CLEAR vehicle rate groups to determine the relative difference in premium from one car to the next. As a young person, pay particular attention to the Accident Benefits rating, since this makes up a huge portion of your annual premium.

http://www.ibc.ca/en/Car_Insurance/documents/hcmu/2010/HCMU_E_2010.pdf

In general, trucks and SUVs are the cheapest to insure but they guzzle gas. The rate is very dependent on your likelihood of being injured in a collision.

BTW, get LOTS of quotes . . . premiums for 19yo's vary considerably. Try an online quote with Belair Direct.
 
I would strongly recommend that you leave your liability limit at $1M, in fact I'd suggest looking as high as $2M.

That being said, I'd also try to arrange your policy in such a way that you'll be renewing shortly after your birthday. At 19 years old, your rating variables are changing quickly. After your birthday you'll be 20, you'll likely have another year of driving experience and you'll also have a year of insurance history under your belt, all making for a very favourable reduction in your premiums on renewal, assuming you don't have any claims or convictions during the year leading up to that point.
 
elton_t said:
hey OP what car is it?

i was paying $465mth with desjardins when i was 19, i had a toyota yaris hatchback 2dr (this was the cheapest i found) im now 21.
now i just transfer the car to my mom and let her buy her own insurance and i just drive it whenever i need to
now the monthly payment is zero, paid $2k at the beginning for the whole year:P

insurance is quite funny with mine, same premium for a Yaris(little family car) and a Audi TT(sport)
Click to expand...

Great, another guy lying to his insurance company so he can escape paying the premium he should.....and the best part.....the rest of us who are honest end up having to pay for his lies.
 
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