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The following article was published in our article directory on August 4, 2010.
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What You Should Know about Car Insurance Ontario

Article Category: Advice

Author Name: John Cortuna

If you live in the province of Ontario, Canada, you are required to purchase car insurance Ontario for your private vehicle, just like in most countries. This is a law mandated by the government to protect its citizens in cases of accidents, injuries, or damages involving privately-owned cars.

It is true that getting auto insurance Ontario is the legal thing to do. But even if it is not mandated by the law, you would still be better off having your car insured for several reasons. For one, auto insurance makes you more financially secure if there is an accident. If you are involved in a car accident, the insurance company will cover almost all the expenses—from hospital bills to car damage repairs. If you do not have insurance, you have to find that big amount of money that will cover all the expenses.

Car insurance also gives you peace of mind. You do not need to always worry about being in an emergency that involves your car because you know that no matter what happens, you are protected by your insurance policy financially. This does not mean that you can become a reckless driver because you know that your insurance will help you in dire financial emergencies. In fact, it will even make you a careful driver because you do not want to have higher premium. As you probably know, being in an accident drastically makes your insurance rates higher.

These are just some of the things that you can get from getting Ontario auto insurance. To give you more information, look at the following paragraphs.

- Ontario requires you to get insurance for your vehicles. If you fail to do that, you have to pay a penalty ranging from $5000 to $50000. It would be much better if you purchase insurance for your car right away, which will give you a lot of benefits than pay this fine. Aside from paying a fine, your driving license might be suspended or your car might be impounded if you do not have vehicle insurance. These are just some of the hassles that you will experience if you fail to obey this simple rule regarding vehicle insurance.

- If you have a bad credit history and you live in Ontario, you do not need to worry about getting higher rates because insurance companies are not allowed to use an individual's credit history to determine the insurance premium. Other criteria that Ontario insurance companies are not allowed to use as bases for the insurance premium include employment status and bankruptcy. It is also okay if you do not own a credit card or if you have negative records with your previous insurance companies, such as cancellation of policy or rejection of application.

- However, regular Ontario car insurance companies do not accept high-risk drivers. These are people who have had multiple cancellations of insurance policies due to non-payment of premium or being involved in several accidents in which he is always at fault. Fortunately for these people, they still have a chance to get insurance. They can apply for insurance from the Facility Association, which is considered as a last resort insurer for high-risk drivers.

About the Author: John is a specialized author who contributes to on-line car insurance comparison site, where Canadian can save money on Ontario car insurance, in addition to travel insurance.

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