When it comes to buying a new or used car in Mississauga or Toronto, most drivers focus on the price tag, financing, and features. But here’s a step many skip—and it could cost you hundreds, if not thousands, of dollars down the road: checking with your insurance broker before you buy.
As an insurance broker serving Mississauga and the Greater Toronto Area, we’ve seen too many drivers fall into the trap of buying the “perfect” car only to discover their insurance premiums are sky-high, or worse—coverage is harder to secure than expected.
Why Call Your Insurance Broker Before Buying a Car?
1. Insurance Premiums Vary by Vehicle
The make, model, age, and even the trim level of your vehicle can dramatically affect your insurance rates. In cities like Mississauga and Toronto, where traffic congestion and claims rates are higher than the provincial average, choosing a car without understanding its insurance implications could lead to unpleasant surprises.
Example: Two similar-looking SUVs could have a $1,200 difference in annual insurance premiums.
2. Certain Cars Are Considered “High Risk”
Some vehicles are more likely to attract thieves or are costlier to repair. In Ontario, the Insurance Bureau of Canada publishes a yearly list of the most frequently stolen cars, and many of them are popular in the GTA. Your broker can run the numbers before you sign that dealership contract.
3. Your Driving Record Meets Your Car Choice
Your insurance rate doesn’t just depend on the vehicle; it depends on how your profile interacts with that car. A driver in Mississauga with a clean record might pay far less for insuring a sedan compared to a sports coupe, while another driver with past claims in Toronto might face steep premiums regardless of car type. A broker looks at both sides to give you a realistic picture.
4. Financing & Leasing Requirements
Some lenders and leasing companies in Mississauga and Toronto won’t release funds until proof of adequate insurance is in place. Checking with your broker early ensures your financing or lease doesn’t get delayed.
FAQs About Checking with Your Insurance Broker Before Buying a Car
Q1: Can my insurance broker give me a quote before I purchase the car?
Yes! All you need is the vehicle’s VIN number or details like year, make, and model.
Q2: Are insurance rates different in Mississauga and Toronto?
Absolutely. Mississauga and Toronto have some of the highest auto insurance rates in Ontario due to higher population density and accident claim frequency.
Q3: Is it cheaper to insure a new or used car?
Not always. While new cars may have advanced safety features that lower premiums, repair costs can be higher. Your broker can compare for you.
Q4: What kind of cars are the cheapest to insure in Ontario?
Generally, mid-size sedans, family vehicles, and cars with strong safety ratings and low theft reports tend to have more affordable rates.
Final Word from a Broker’s Perspective
Before you fall in love with a car on the lot in Mississauga or Toronto, pause and call your insurance broker. We have access to multiple insurers, real-time rates, and insider knowledge on how your dream car might affect your budget. A quick conversation could save you years of high premiums and unnecessary headaches.
Remember: Buying smart means insuring smart.