Car Insurance in Hamilton, Ontario
Your Partner for Hamilton Auto insurance
Auto insurance is essential for every driver in Hamilton, where holding coverage is a legal requirement. Before hitting the road, it’s important to be well-informed about the complexities of car insurance. Our team of experts understands the nuances of insurance concepts and terminology, and we’re here to guide you. This comprehensive guide covers everything you need to know about car insurance in Hamilton—from coverage options and limits to costs and key considerations.
We also introduce you to our auto insurance products. At Acumen Insurance, we provide a suite of personal and business insurance products, like home, auto, life, business, and travel insurance. Our main goal is to help you get the protection you need on a rainy day. And we go above and beyond to achieve that goal.
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Why Acumen for Car Insurance in Hamilton?
Tailored Consultancy
Get expert advice from the best in the industry, tailored just for you. Each client we serve gets special treatment as we customize solutions individually. Our customer service is also available to help you make the best decision. Get the service you deserve with Acumen Insurance.
Risk Prevention Experts
We help you gain a clear understanding of the risks you face, and make decisions to mitigate them. While risk management does not eliminate risks, good car insurance practices will have you reap greater rewards, including lowering your car insurance costs.
We Want You to Pay Less
We make sure you only pay for the coverage you need. From obtaining great deals to advising you on the best practices and offering discounts, we work for you, not the insurance company. We reward you for good driving behaviour, as we offer discounts for installing winter tires and enrolling in the telematics program.
Is Car Insurance Mandatory in Hamilton?
Car insurance is legally mandatory in Hamilton, as well as in all cities in Ontario. The city of insurance mandates carrying a minimum amount of coverage to protect Hamilton drivers from unexpected events. Failing to provide proof of valid insurance when prompted results in penalties for all drivers.
Penalties for Driving Without Car Insurance in Hamilton
- Fines: First-time offenders face fines ranging from $5,000 to $25,000. For subsequent offences, fines increase to between $10,000 and $50,000.
- License Suspension: Your driver’s license may be suspended for up to one year.
- Vehicle Impoundment: Your vehicle could be impounded for up to three months.
- Additional Fees: A 25% victim fine surcharge is added to the imposed fine.
- Insurance Implications: A conviction can lead to higher insurance premiums or difficulty obtaining coverage in the future.
What Are the Optional Car Insurance Coverages in Hamilton?
- Comprehensive Coverage: Comprehensive coverage protects you against non-collision-related damage, including theft, vandalism, weather damage, animal attacks, falling objects, and more. It pays for the repair or replacement costs.
- Collision Coverage: Collision coverage protects against any type of collision, be it against another car, property or object. It’s optional coverage for Hamilton drivers that protects the policyholder, even if they are at fault in the accident.
- All-Perils: All-perils coverage contains a combination of comprehensive and collision coverage. Additionally, it may offer coverage if a household member or employee steals your car.
- Specified Perils: It offers protection for specified perils, like theft, attempted theft, explosions, natural disasters, fire, and other perils specified in your policy. It doesn’t protect you from some perils, like vandalism and breakage of glass.
What Is the Minimum Mandatory Coverage in Hamilton?
- Third-Party Liability Coverage: Liability coverage is the coverage you need when you’re sued for being the driver at fault in an accident. Each driver should hold a minimum of $200,000 of car insurance in Hamilton, but drivers are advised to increase their limits. You may opt for a coverage limit of $500,000, $1 million, or $2 million, with up to $2 million limit. Third-party liability insurance includes: 1- Bodily Injury: If you’re at fault in an accident that results in an injury, the coverage pays for medical costs, in addition to lost wages, and emotional distress.2- Property Damage: If the accident results in damage to another person’s property, like a car or building you hit, third-party liability coverage pays for repair and replacement.
- Accident Benefits Coverage: Statutory accident benefits pay for the medical expenses if you’re injured in an accident, whether you are at fault or not. It covers medical expenses for your recovery, specifically expenses your OHIP doesn’t pay for. Additionally, it may cover attendant care, rehabilitation, and lost wages.
- Direct Compensation – Property Damage (DCPD):DCPD covers damage or loss of use of your vehicle in an accident where the other driver is insured and is at fault, paying for repair and replacement costs. That means your insurance company will compensate you rather than a third-party provider.DCPD used to be a mandatory car insurance coverage until January 2024. Currently, it’s included in standard car insurance policies, but you can opt-out and get it removed.
- Uninsured Automobile Coverage: This auto insurance coverage, also known as uninsured motorist coverage, pays the medical expenses if you’re injured or killed in an accident where the other driver is uninsured or unidentified. It also pays for the repair and replacement costs if your car is damaged in a hit-and-run. Uninsured automobile coverage has a limit of up to $200,000.
Car Insurance in Hamilton OPCF Endorsements
What are OPCF Endorsements?
Ontario Policy Change Form (OPCF) is an optional add-on that can add, reduce, or change the coverage limits of your existing policy. It helps you tailor your insurance policy to your needs specifically.
OPCF 20: Coverage for Transportation Replacement
If your car can’t be used anymore because it was stolen or damaged, this coverage pays for your transportation. It also pays for getting a rental car until your car is repaired or replaced.
OPCF 27: Liability for Damage to Non-Owned Automobile(s)
If you damage a car you don’t own, like a rental or borrowed car, OPCF 27 covers the repair costs with a limit ranging from $25,000 to $50,000.
OPCF 39: Accident Waiver/Accident Forgiveness
OPCF 39 may prevent your premium from increasing when you get into your first at-fault accident. Note that it’s only applicable as long as you’re with the same insurance company. When you change to another insurance provider, you may see your car insurance costs increase.
OPCF 43: Waiver of Depreciation
Cars start depreciating as soon as they hit the road when you purchase them. Normally, your car insurance company has the right to deduct the depreciation value from your new car if you get into an accident. But with OPCF 43, you may get reimbursed for the value of your car, so you can buy another one. OPCF 43 is available for a limited time, usually 2-5 years, and only applies until your mileage reaches 5000 kilometres.
OPCF 44R: Family Protection Coverage
OPCF 44R, known as the Family Protection Coverage endorsement, is an optional addition to your car insurance policy in Hamilton. It enhances the financial protection for you and your eligible family members if you’re involved in an accident where the at-fault driver is uninsured, underinsured, or unidentified (such as in a hit-and-run).
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What Are Hamilton Car Insurance Rates?
Average Hamilton car insurance premiums is $2,747.22per Year. The numbers differ from one person to another based on many factors, like the driver’s age, gender, and location, as well as the car’s make and model. Below we take a closer look at the factors that affect premiums.
Get a QuoteFactors that Determine Hamilton Car Insurance Premium
Driving Record
Your driving record is the most important determining factor. Because insurance companies want to be sure that you’re responsible and reliable, drivers with a clean driving record get better rates than drivers with traffic violations.
Here’s how traffic violations affect your insurance premium.
- One minor traffic violation, like slight speeding or failing to single, might increase your premium by 15%.
- A major violation, like speeding over 30-49km over the limit or running a red light, might increase your premium by 25%.
- Serious violations, like DUIs or stunt driving, might increase your premium by 100%.
Note that these percentages might accumulate, raising your premium prices dramatically or putting you in the ‘high-risk drivers’ category. That’s why, it’s crucial to maintain safe driving habits at all times.
Location
Each location or postal code in Hamilton pays different rates. The reason behind this is that each area has a different traffic density, crime rates, and historical claims data.
Gender
Car insurance providers also consider the driver’s gender when calculating Hamilton car insurance rates. According to statistics, women are less likely to get into accidents, which qualifies them for a discount. For example, an 18-year-old male would pay an average annual car insurance premium of $5,119.21, while an 18-year-old female would pay $4,718.75.
Age
Age is another important price factor and for a good reason. Older drivers are more experienced and less reckless, making them less prone to accidents. Car insurance for Hamilton seniors is usually the cheapest up to a certain age. As for students in Hamilton, car insurance rates are the highest until the age of 25 because they’re still learning, and they are more likely to engage in dangerous behaviour like stunt driving, or racing. The average Hamilton car insurance rates for drivers
- Age 18-25: $4,803.13
- Aged 25-40: $3,157.55
- Aged 40-60: $3,163.57
- Aged 60+: $2,220.39
Car Insurance Companies
Car insurance companies use different metrics to measure insurance rates in Hamilton. Here are some examples of the average monthly insurance premium for a 35-year-old male driver living in Hamilton:
- Aviva: $228.73
- Wawanesa: $202.5
Car Make and Model
The make and model of a car can tell a lot about its market value and sturdiness. Generally, new luxury cars are more expensive to insure than older mid-range models, because they have higher repair or replacement cost. The average yearly premiums for a Ford is $2,920.96. A Honda Accord, on the other hand, might be more affordable, $3,252.93. Lastly, luxury cars, like a BMW 7, might be more costly, ranging $3,816.29.
Other Factors:
- Mileage: If you commute daily with your car, you may get a higher insurance premium.
- Insurance history: Having previous claims on your record raises your premium rates because it increases the likelihood of future claims.
How to Get a Student Car Insurance Discount
- Maintain good grades
- Take a driving course.
- Enroll in usage-based driving.
- Add an experienced driver to your policy.
How to Get Cheapest Car Insurance Premiums in Hamilton
Our tips for getting the cheapest car insurance quotes.
- Bundle auto and home insurance policies: Many insurance companies give discounts if you combine your home and auto insurance.
- Consider increasing your deductible: To lower your insurance premiums, you might consider increasing your deductible. We recommend reviewing your finances first to be sure that you can afford to pay the deductible at any point.
- Maintain a good driving record: Safe driving habits protect you from accidents and help you get lower rates.
- Install winter tires: We offer discounts on your car insurance policies for installing winter tires.
- Ask for discounts: Inquiring about your discount eligibility might result in a pleasant surprise. Many insurance providers offer discounts for various reasons.
- Shop around: Get quotes from multiple insurance companies before settling on one insurance policy. It’s helpful to learn about different prices and coverage options before making a final choice.
How Do Car Insurance Rates in Hamilton Compare to Other Cities in Ontario?
Hamilton has some of the highest car insurance rates in Ontario. As of 2024, Hamilton drivers are paying an average of $2,747.22 per year which is more than the provincial average of $2,595.04 .
Here is a comparison to other cities in Ontario:
- Toronto: $3,208.8
- Vaughan: $3,751.54
- Milton: $2,887.32
- Burlington: $2,386.75
As shown, Hamilton’s rates are higher than Milton’s but lower than Vaughan’s. Factors that contribute to Hamilton’s higher rates are high traffic, collision frequency and highway driving. Keep in mind individual rates can vary based on personal factors such as driving history, vehicle type and coverage options.
What Are the Common Risks for Drivers in Hamilton?
Hamilton drivers face these common risks on the road:
- Distracted Driving: 19.1% of fatal and injury crashes from 2017 to 2021 were caused by distracted driving.
- Aggressive Driving: Speeding, tailgating and lane changing will increase accidents rates.
- High-Risk Intersections: Some intersections in Hamilton are more prone to collisions so drivers need to be extra careful.
- Bad Weather: Snow, ice and fog in the winter months reduce visibility and road traction, making it hazardous to drive.
- Impaired Driving: Driving under the influence of alcohol or drugs is also a big risk, as it impairs judgment and reaction time.
To reduce these risks, we recommend drivers always be focused, follow speed limits, be patient and adjust driving habits to the weather. We also advise staying informed of high-risk areas and defensive driving to stay safe on Hamilton roads.
High-Risk Drivers Car Insurance in Hamilton
High-risk drivers are ones that insurance companies consider risky to insure and are more likely to file insurance claims. These drivers face a lot of difficulty in getting affordable car insurance. In many cases, they may have to find a car insurance provider that offers high-risk car insurance, like Jevco. In other cases, where they may have been rejected by multiple insurance companies, they resort to the Facility Association—a collective of insurers operating in Ontario- for more costly car insurance.
Insurance companies classify a driver as “high-risk” based on factors indicating a higher likelihood of filing claims. Key factors include:
- The driving record has multiple traffic violations, at-fault accidents, and DUIs.
- The driver shows a pattern of reckless driving, like multiple speeding tickets.
- The driver has a long insurance lapse.
- The driver is very young and experienced or elderly.
How to Get Cheap Car Insurance in Hamilton as a High-Risk Driver
To get a cheaper insurance premium as a high-risk driver, you should follow safety protocols moving forward to avoid further violations. You could also use telematics for the company to monitor your driving habits and see that you drive safely. Another suggestion is to install winter tires and anti-theft devices to decrease the probability of filing more claims that may increase your car insurance rates.
How to File a Car Insurance Claim in Hamilton?
- Ensure Safety and Report the Accident:
- Immediate Safety: Check for injuries and move to a safe location if possible.
- Call 911: If there are injuries, over $2,000 damage or a criminal act (e.g. impaired driving).
- Collision Reporting Centre: For minor accidents with no injuries and under $2,000 damage, report to a local Collision Reporting Centre within 24 hours.
- Collect Information:
- Other Parties: Get names, contact information, driver’s license numbers, license plate numbers and insurance info from all other drivers.
- Witnesses: Get contact information from the witnesses.
- Documentation: Take photos of the scene, vehicle damage and any relevant road conditions.
- Notify Your Insurance Company:
- Timely: Tell your insurer as soon as possible, ideally within 7 days.
- Provide Details: Share all collected information and documentation with your insurance representative.
- Fill Out Forms:
- Proof of Loss: Fill out any forms provided by your insurer to detail the damage and circumstances.
- Vehicle Inspection and Repairs:
- Damage Appraisal: Your insurer may require an appraisal of the vehicle damage.
- Approved Repair Shops: Use repair shops recommended or approved by your insurer to be covered.
- Know Your Coverage:
- Deductibles: Know your policy’s deductible amount and the amount you’ll pay out of pocket.
- Rental Vehicles: If your policy has rental coverage, your insurer can help arrange a rental car during repairs.
- Follow Up:
- Claim Status: Stay in touch with your adjuster to stay updated on your claim.
- File: Save all correspondence and documents
Tips for Reducing Your Car Insurance Premiums
- Bundle Policies: Combining auto and home insurance can lead to discounts.
- Maintain a Clean Driving Record: Avoiding traffic violations and accidents helps keep premiums lower.
- Install Safety Features: Vehicles equipped with anti-theft devices or advanced safety systems may qualify for discounts.
- Review Your Coverage Regularly: Ensure your policy reflects your current needs and take advantage of any new discounts.
Car Insurance in Hamilton - FAQs
Car insurance annual premiums range is $2,747.22. Each driver gets a different price quote, depending on many factors. To get an accurate quote, please fill out our form and we will be in touch.
Car insurance in Hamilton is slightly lower than in Toronto because Toronto has a higher traffic density, among other factors.
To get cheap car insurance in Hamilton, consider these tips:
- Bundle home and auto insurance
- Increase deductible
- Ask about discounts
- Install winter tires
- Drive safely
Our team of expert brokers can help you get affordable car insurance without compromising on adequate coverage. Contact us now.
Yes. You can cancel your Hamilton car insurance at any point, though it’s not recommended because it might incur expensive cancellation fees.
Hamilton car insurance is expensive because of many factors, like high traffic density, claim rates, vehicle theft and vandalism rates, and high repair and medical costs.
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