Tony’s son Cameron wanted to be made the principal driver on an 11-year-old Toyota Camry with 270,000 km on it. The college student has a G2 licence, had been driving for two years with a clean record, and is scheduled to take his G test in February.
The insurance company wanted $6,000 a year!
The quote from Coseco Insurance forced Tony to seek quotes from 40 other insurance companies and brokers, which brought in quotes ranging from $32,000 (which is about what somebody driving taxi pays!) to $6,100 per year.
One industry expert suggests that a $32,000 quote is a company’s way of saying “we don’t want to do business with you”.
Tony is now considering a usage-based insurance (UBI), which sees a wireless device installed in the car that will measure everything about the car as it motors about town. This can help bring down the cost by between 10 – 25%.
Why does Cameron need a car in the first place? He works a minimum-wage part-time job 8 km from home.
He could get there via public transit, but it would require him to take the TTC with a transfer on to Markham Transit. This approach would see him late for work every day. He could look for another job, but he got this one through a friend and feels obliged to stick with it.
Read more about the story HERE in the Toronto Star