4 steps to getting the best used car insurance
Woman's hand outside a car window

You’ve found the perfect used car, but before you can finalize the sale, you need the perfect insurance. Buying a car is the best time to review and update your existing policy or shop around for better coverage.

Here are our top 4 things to consider, plus a few tips just for used cars:

1. Understand what’s covered

When it comes to your car insurance, there are a lot of options. How do you know what you need and what you don’t? Each province is different, so double check what you’re legally required to have and brush up on the basics of your policy:


This coverage is mandatory in every province in Canada. It covers you if you cause damage or injury to someone else’s property in a car accident.

Physical Damage

If something happens to your vehicle, this is the coverage that helps repair or replace it. Although commonly referred to as collision and comprehensive coverage, those are just a couple of your options. Get the 101 on physical damage coverage to make the best choice for your car.

Accident Benefits

Your auto policy doesn’t just cover damage to your vehicle (or someone else’s). It’s also there to help you recover if you’re injured in an accident. Learn more about what’s covered if you’re hurt in an auto accident.

Used car tip: If your used vehicle is older (or completely paid off) you could consider removing collision and comprehensive coverage to lower your premiums. But remember, you’ll be on the hook for costs to repair or replace your vehicle if something happens.

2. Be prepared for what’s not covered

Knowing what you’re not covered for is just as important as knowing what is covered. It’s likely your used car is no longer under warranty, so remember things like rust, corrosion, mechanical breakdown, tire damage and general wear and tear aren’t covered by your auto policy.

Used car tip: Before you purchase your used vehicle, be sure to ask if there have been any after-market modifications. While they might seem cool, these could cause problems when it comes to getting coverage.

3. Consider your options

You’ll be surprised at how affordable it is to get more coverage compared to the potential cost. Check out the top 5 auto insurance coverages you should have to make sure you’re fully covered.

If your used car is five years or newer, ask your insurer about adding a Used Vehicle Waiver of Depreciation. Why? Your vehicle loses value every year. Under a standard policy, your car will only be covered for what it’s worth today, not necessarily what it will cost to repair or replace it. Add this waiver and you’ll be covered for the full cost to repair or replace your vehicle without any adjustment for depreciation.

4. Shop around to find savings

Just like you probably didn’t buy the first used car you saw, it’s always a good idea to shop around. Always ask questions about your coverage options and find out what discounts might be available. Start with these 6 ways to save when insuring your rider. Plus, check out the 5 vehicle features that help keep your insurance costs low.

Used car tip: As a general rule of thumb, the older the model, the better the savings you’ll see – and that’s not just on the purchase price. The value of your car plays a role in how much your insurance will cost, so you could already be saving by buying a used car!

Make sure you’re covered with the best insurance plan for your home and auto.