If you own a vehicle, auto insurance is one of the most important purchases you can make. No matter where you live in Canada, minimum insurance coverage is mandatory by state law. However, regulations regarding car insurance can vary.
The basic auto insurance policies usually include liability and property coverage, with some exceptions. To protect yourself and your vehicle, you should look for the most beneficial policy that provides full coverage in case of accidents or any other unwanted events.
What is car insurance?
It’s essential to know what car insurance is and why you need it if you haven’t purchased it already. Generally speaking, car insurance is a contract between an individual and an insurance company. The contract protects you financially in the event of an accident, auto theft, injury, or other unwanted events.
Bear in mind that driving without insurance in Canada is illegal and can lead to hefty fines.
How do you choose the right policy?
It is important to remember that Canada has different insurance rates. Different insurance companies will offer different quotes based on specific factors. These may include your car’s age, type, marital status, location, and driving record. In British Columbia, Manitoba, and Saskatchewan, the government has its own auto insurance programs, while in other provinces you can find private auto insurance coverage.
You should do your research before you purchase your car insurance. Compare rates from different companies in your local area to determine the best price and coverage policy. For example, rates for auto insurance in Guelph Ontario may differ from the ones in Barrie, and not all insurance providers will offer complete coverage.
Nowadays, conducting such research is extremely easy. Start by looking at the websites of different insurance companies and write down what they have to offer. You should also check for add-ons, loyalty programs, and discounts. After narrowing down your options, it is a good idea to talk to an insurance company employee, or an insurance broker to make sure you understand the details of what you are buying.
What does auto insurance cover?
Basic car insurance coverages are generally the same across Canada. Basic car insurance covers events that led to an injury and vehicle damage.
However, depending on your insurance policy, the covered aspects will differ. Here are the four most common insurance-covered expenses.
Medical expenses
If the driver or the passengers are hurt in an accident, the full car insurance coverage will pay for all of the medical expenses. With this type of coverage, you won’t have to pay for medical bills or any other medical treatment that you and the passengers might need.
Your car insurance may also cover additional expenses due to injuries, such as child care, lost income, and mental healthcare treatments.
Personal Liability
If you are to be blamed for an accident you might be responsible for the costs associated with it. These could include legal fees, medical expenses for the injured person, or lost income if they are unable to work because of their injuries. However, having liability coverage will protect you financially. Keep in mind that drivers are required to have liability insurance in every state.
Property Damage
Whether you’re involved in an accident or your car is damaged while parked, having basic car insurance means you have to pay for any repairs out of your own pocket. In addition, if another car is involved, you may also be required to pay for their repairs as well. Having the right policy will cover these costs and will also guarantee that your vehicle is repaired by the best workshop. A full policy may be able to help you pay for repairs, vandalism, natural disasters, and even the replacement of a vehicle.
Theft
In 2020, there were about 205.64 motor vehicle thefts per 100.000 residents in Canada. Living in Canada without insurance that doesn’t cover auto theft is a gamble.
Auto insurance policies also include coverage for stolen vehicles. Depending on the coverage, the insurance company may reimburse you for part of your investment, or almost the total amount.
To sum up
Auto insurance in Canada is mandatory and proceeding without proper coverage will lead to unnecessary brush-ins with the law. Make sure that you look for the best quotes the insurance market has to offer. Don’t forget that insurance rates can vary depending on your location, driving record, and marital status.
