What You Need To Know About Car Insurance Changes

By: Brenden Somerville   |   08 Nov 2016
City street at night

This past June, Ontario made a policy change regarding automotive insurance policies, but many Ontario drivers may not have been affected just yet. In order to make auto insurance premiums more affordable to Canadians, the coverage levels took a direct hit, which means the insurance you previously signed up for may have been adjusted. According to the Financial Service Commission of Ontario, some benefits and coverage have been reduced, some coverage options have been eliminated or altered, and some completely new options are being introduced. While the changes won’t come into effect for policy-owners until their policies are up for renewal, it’s a good idea to understand the terms of your insurance, and start looking into other options to keep you protected while driving on Ontario’s busy highways. One of the best backups to have is a warranty on your vehicle, and we’ll explain why.

Car Insurance Vs. Car Warranty

Though they might sound the same, car insurance and car warranty are two very different terms. Car insurance is a policy that protects you from the risk of any financial loss connected to your vehicle and caused by an external source. With car insurance, you don't pay out of pocket for hefty repair or damage fees that result from these cause. Be it an act of vandalism, a bad storm, a collision or even a fire, car insurance will reimburse your loss, and also protects you in the event that your vehicle causes damage to somebody else’s personal property. A car warranty, on the other hand, is basically a mandate from the auto manufacturer that the vehicle you have purchased is solid and true, and if by any means it fails to live up to its promises, then the manufacturer or dealer you purchased it from is responsible for the cost of repairs. To remember the difference, car insurance covers most damage caused by external factors, while car warranties cover the costs of damage brought on by the vehicle itself.

Why Should I Get An Extended Warranty?

Luxury and exotic car owners in Toronto know that their vehicle is more than just a mode of transportation; it’s an investment. While car insurance provides sufficient coverage, the extended warranty provides drivers with peace of mind, which is priceless. While you can never predict an accident or collision brought on by another vehicle, you can take responsibility for your own vehicle and increase your protection long after the manufacturer's warranty has worn off. Many extended warranties are customizable and transferable, which is great if you plan on selling or trading in your exotic car or SUV in the next few years. All of the vehicles available for our used vehicle leasing programs at Somerville Auto come with a manufacturer’s warranty. We are more than happy to discuss your extended auto coverage options with you, should you feel the need to increase your level of protection out on the road.

Has there been a change in your insurance coverage or warranty on your vehicle? Contact us online or call us today at 1-(855) 503-5102 to discuss your options with a professional.

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