Buying a Car

Avoid surprises … talk to us before buying a new vehicle.

Buying a Car: Everyone is excited about buying a new car, but you should consider the additional cost of insurance prior to making your purchase. Call your broker, we can tell you the cost for the different vehicles you are considering. Different models of the same vehicle can have different prices, i.e. 2dr vs. 4dr, basic model vs. fully loaded with all the options. If you are moving from an older vehicle with no collision to a new vehicle with full coverage your premium can increase dramatically. If I buy a new car but forget to call my broker am I covered? Yes you have 14 days automatic coverage based on the coverage’s you had on your old car.

When buying a new vehicle the cost of insurance is an important consideration. Some vehicles cost more to insure than others, and it is not always just related to the cost of the vehicle. The insurance cost for vehicles are rated based upon their cost to repair, incidence of theft, and safety features. The Vehicle Insurance Center of Canada develop statistics on each vehicle and from these statistics cars are assigned rate factors which are used to determine the cost of insurance.

Typically we find that 2 door cars, sports cars, and foreign or exotic cars where parts are hard to get, or expensive are more costly to insure. Colour doesn’t play a factor. Purchase price can – all other factors being equal the more expensive car will usually be the more expensive to insure. Safety features such as all wheel drive, ABS brakes or sophisticated alarm systems may help reduce the cost of a particular model.

When adding a vehicle to your personal “fleet” make sure you think about the use – is it a second vehicle – can the older vehicle be used to commute, saving the less expensive pleasure rating for the new car. If it is a third vehicle in the household, will a child be designated as the driver? Insurance companies will assign one driver to each vehicle in the household – if you have two parents and a child, the third vehicle could result in a costly underage driver rating.

As an Utter Morris client we will check rates on new vehicles before you buy them, and offer advice on the best (and least expensive) method to insure them. We’ll also phone the dealer to confirm coverage so the licensing can be done, confirm coverage with the leasing company, and hold covered on your old vehicle if necessary. We’ll also make sure you get the correct coverages. On new vehicles it is important to make sure you receive the OPCF 43R – Waiver of Depreciation – this endorsement waives depreciation on repairs meaning new parts are used. In the event of a “write off” due to an accident, theft or fire, it means that the insurance company will pay you what you paid new for the vehicle, without deduction for depreciation! This important endorsement is good for the first 24 months that you own the car.

Temporary coverage is included in the auto policy when you are buying another vehicle. Subject to a bunch of conditions newly acquired vehicles are insured automatically for 14 days – however this applies only if we insure all your vehicles and only for common coverages so it is a good idea to talk to your Utter Morris professional to ensure that it will apply in your situation.