Auto insurances are a requirement in Canada. Drivers legally can't drive without proper auto insurance Canada policies. Hence, even when the premium rate for auto insurance Canada is affecting your budget, you can't avoid it.

The prices of auto insurance Canada have been sky rocketing over the decades, which has left the drivers struggle with their budge. Some drivers are compromising with their coverage level, when many others have decided to go without coverage. None of these scenarios are desirable since both uninsured and underinsured drivers are threats to the society.

Why auto insurance is a legal requirement?

Like many other countries across the globe, Canadian law enforcement body also wants the drivers to carry insurance when they hit the road. Insurance has become important to keep the drivers accountable for their act and take responsibility when they cause accident. You're required to compensate the victim for causing property and/or physical damage.

How can you benefit from comparison shopping?

The increased cost of healthcare and auto repair has made auto policy expensive. Drivers finding it hard to cope up with the rising cost of auto insurance Canada however can still get competitive dealing by shopping around.

Internet has allowed drivers to shop around and compare cost of different providers. Following are the tips to help you find competitive auto insurance Canada rates.

-You can now visit the direct websites of different auto insurance Canada providers and check the different policies available. Some insurers also publish the premium chart of their competitors to help customers decide better.

-There are also third party sites which offer quotes from different insurance providers. Most of these sites will let you obtain no-obligation quotes from different providers.

-Many independent agents and insurance brokers have their websites which can help auto insurance Canada customers to shop around and find competitive rate for auto policies.

What are the negatives of comparison shopping?

Along with its many benefits of comparison shopping for auto insurance Canada, it also has certain disadvantages, which the customer should be aware of.

1.While doing comparison shopping the customer shouldn't concentrate only on the price of the policy. The objective of comparison shopping is to get the best pricing deal without compromising with the coverage level.

2.The price displayed in the site when you are obtaining quotes online, might or might not match with the premium rate in reality. Hence, you may only take it as a ballpark.

3.There can be hidden costs and terms and conditions, which the customers need to clarify before applying for an auto insurance Canada policy online.

4.The cheap rate available on the site can only be a teaser rate, which may go up soon after the policy is issued.

You may find many unknown and less known auto insurance Canada providers online. But often these providers aren't genuine. Hence, the customers should stick only to reputed auto insurance Canada providers while looking for cheap auto policies.

There are several ways you can compare auto insurance and your choice of method would boil down to how much time you have and how desperate you are to get the best deal at a price favorable to your budget.

The most time consuming method would be to do old school method and that would mean sitting down in front a phone and calling everyone on the phone book. Or you could visit different insurance offices and spend a lot of time listening to insurance agents make their spiel. The chance of getting out alive from these meetings and with your wallet intact is almost zero. But if you're retired and just want to make use of your idle better outside of the house, dropping these offices will ensure you have at least free coffee and someone to chat with.

Most of us don't have this luxury and the pressure to close an auto insurance plan is something we just want to get over and done with. Here then are other options for those who are busy but want to pay the least possible under the most comprehensive plan available.

Free Online Insurance Quotes

Start asking for companies to send you free insurance quotes. All you will need to provide are the basic information such as car model and year. Most online insurance companies will have no problem sending you the basic rates, although you should expect them to try to entice you with a more comprehensive plan. Keep in mind though that the quoted rates may change depending on your credit history and any negative history on your driving skills, accidents, age, even place of residence.

Ask Around

Ask for recommendations from people you trust about which insurance company to contact. Based on number of replies you get, you can already target specific companies. The logic behind this plan is if your trusted family members and friends are happy with their auto insurance, then you probably will. You could even get special discounts if you ask for the name of the insurance agent and inform that person who referred you. This eliminates the need to compare insurance companies and leaves you with having to compare rates and features.

Look at Ads in Newspapers and Magazines

You could browse through your daily newspaper for special promotions. It's important to consider this method because you may miss it when searching online. There are companies that use traditional media first before marketing online.

The Features To Compare

In comparing the quotations you receive from different insurance companies, compare the following:

Monthly payments

Deductibles

Accredited shops

Special bundle packages

Payment centers like places convenient for you

Penalties

The most important of all is calling them up or emailing them and waiting for their response. You must have confidence that the company will treat you as a VIP, according you professional treatment and due respect. If they make you wait for the reply or keep you on hold, don't even bother considering them. If they can't treat you right before signing the policy, then you can't expect good treatment after you signed the insurance plan.

Finally, don't make the decision right away. Think about it for at least a couple of days. It's important to be happy with your decision because if the time comes that you need to make a claim, everything would have already been ironed out.