Sell me auto insurance, please

I’m in the market for competitive auto insurance, as Dominion of Canada has just raised my rates 15% for no reason.

  • Car and driver in Prince Edward Island.
  • One driver, born 1966.
  • Licensed since 1982.
  • No violations/convictions/accidents.
  • One car, 2000 Jetta 4DR.
  • $500,000 Liability.
  • Collision — $250 deductible.
  • Comprehensive — $100 deductible.
  • Driven only for pleasure, approx. 8000km/year

Last year’s rate was $806. This year it’s gone up to $940. Can you do better?


Alan's picture
Alan on March 17, 2004 - 23:37 Permalink

Yumpin’ Yumminy! Raise your liability to one ro two million at least. $500,000 is nowhere near enough.

DerekMac's picture
DerekMac on March 18, 2004 - 03:30 Permalink

Deductibles for Comprehensive and Collision are low. Most people have them at $500 these days. If the damage is less than $500, you probably don’t want to put it through your insurance anyway. Raising these limits would save a few dollars. And, ss Alan has said, you definitely need at least a million for liability.

Ritchie Simpson's picture
Ritchie Simpson on March 18, 2004 - 13:13 Permalink

Perhaps you should wait until Apr 1. AS I understand the IRAP Press Release that’s the date the mandated rate reductions are supposed to come into effect. It might be an interesting exercise to compare before and after.

Jeff Geddes's picture
Jeff Geddes on March 18, 2004 - 16:11 Permalink

Maybe you should ask your insurance company why they are raising your premiums, as the insurance companies in Canada made record profits last year. I think somewhere in the range of 2.65 BILLION dollars. Of course they say it’s not because they gouged everybody by raising premiums to obscene levels !! yeah right………. Just tell them they are a bunch of crooks and deserve to go to jail.

Ann's picture
Ann on March 18, 2004 - 19:41 Permalink

$940 a YEAR??

Where can I sign up?

Peter Rukavina's picture
Peter Rukavina on March 18, 2004 - 20:38 Permalink

There are people who pay more than $940/year for insurance?

Alan's picture
Alan on March 18, 2004 - 21:23 Permalink

People with sufficient liability coverage for one…

Dan James's picture
Dan James on March 18, 2004 - 21:44 Permalink

Peter, I pay 2,400 for insurance a year. Mind you, I’m young and drive a sports car.

Fred Hyndman's picture
Fred Hyndman on March 18, 2004 - 22:27 Permalink

I reccomend that Peter sit tight for now, as Dominion rates are being reduced effective April 1st — by around 12% and that refunds will be made for the number of months remaining in his contract.

Jevon's picture
Jevon on March 19, 2004 - 01:37 Permalink

Yeah. Don’t ask me what I pay. It would put most to shame (err. glee)

Mandy's picture
Mandy on March 19, 2004 - 03:36 Permalink

You young boys and your fancy cars… that certainly does make it expensive. But Dan, yours should drop now correct, since you just turned 25?

Ann's picture
Ann on March 19, 2004 - 14:36 Permalink

I, a middle aged woman with a used car (and a bitter reality that is), pay $982 a year. I have a good driving record and more liability than Peter does…but not as much as Alan recommends.

I think, Pete, in this age of over inflated insurance rates, you’ve got a pretty good deal.

One day when I was at my insurance company, a family came in to complain that the insurance on the brand new sports care that they had bought for their sixteen year old son was going to be $5,200. Though I generally think insurance rates are too high, I think this kid’s entry into my risk pool was at a pretty fair price.

Alan's picture
Alan on March 19, 2004 - 15:35 Permalink

Just to explain the liability levels, if you are in an accident now in which a child is injured and there is some indication that future earnings would have been in anyway enhanced or some indication that there will be future costs of care due to no likelihood of recovery, your liability coverage levels should meet those cost levels. If they do not you are risk managing, telling yourself that it will never happen to you. But if it does happen it would be disasterous. Paying the increased premium is not disasterous — just a pain in the ass. Further, if you increase your deductable to $500 bucks you will offset that premium increase.

If you do that you are saying to yourself “I will pay the first 500 bucks of a 5 million claim” rather than “I will pay the first 100 bucks and last 4.5 million dollars of a 5 million dollar claim”. I pay lots for insurance of many classes directly or through work (auto, life, renters, disability, travel, health, maybe errors and omissions). I never begrudge the cheques.

John Morris's picture
John Morris on March 20, 2004 - 16:55 Permalink

Peter I also pay $2400 and drive a sports car with a clean driving record (Been driving for 4 years). I would switch with you any day. For a 2000 Jetta my insurance would be 4 times my current amount.

Mandy's picture
Mandy on March 21, 2004 - 01:25 Permalink

you would switch with Peter cause your insurance would be 4 times greater or less?

Mandy's picture
Mandy on March 21, 2004 - 01:27 Permalink

oh.. sorry… I was NOT reading this all correctly apparently. Forgive my ignorance and go on as usual (as I’m sure you all do with me anyway, it’s all good)

Peter Rukavina's picture
Peter Rukavina on March 3, 2005 - 01:30 Permalink

Just for reference, my 2005 rate is $834.