Canadian Auto Insurance

Every person who drives in Canada must carry auto insurance. Every province in Canada requires a driver to be covered for his or her own medical expenses and loss of income when it relates to an auto accident injury. The main purpose of auto insurance is to be protected against vehicle damage and bodily injury.

Government Insurers

Auto insurance can be purchased from private insurance companies in all ten of the provinces; however in Saskatchewan, BC, and Manitoba the minimum required auto insurance is sold by the government, according to the Insurance Bureau of Canada. Additional coverage can be purchased through a private insurer.

Liability Insurance

Third party liability coverage worth $200,000 ($50,000 in Quebec) is also required in Canada. This covers any other person and their property, should there be an accident. Your driving history, age, marital status, and the vehicle you drive determines what type of car insurance premiums you will have to pay for liability insurance.

Collision and Comprehensive Insurance

Collision and comprehensive coverage is mandatory only if financing a motor vehicle. Collision covers damage to the insured’s vehicle. Comprehensive coverage is for vandalism, theft, falling objects damaging the vehicle, and other unavoidable events such as fire. If you are worried about damage to your vehicle, it is wise to purchase collision insurance, even though it isn’t mandatory.

The amount of collision coverage to purchase is contingent on the value of your vehicle. What if you paid hardly any money for your car. For example, a Jaguar costs more than a Volkswagen. Evidently, the premium will be higher and the amount of coverage more extensive for a person who owns a new Jaguar, than for a person who owns an old Volkswagen. After all, if you spent little money for your car, why insure it for tens of thousands of dollars. Remember, your insurance company is only obligated to pay up to its cash value.

If you cause an accident, and the other driver has no liability insurance, collision insurance will take care of the expenses for your damages. If you and the driver are at odds as to who is at fault, and a court battle ensues, collision insurance will pay for your repairs and take over the claim against the other driver while the court case develops. In addition, if your insurance company is ethical they will return the deductible to you if you win. Collision insurance will also pay for damages if you hit a tree, pole, or other inanimate object.

No-Fault Insurance

According to the Insurance Bureau of Canada, if you are injured and/or your car is damaged in an auto accident, no fault insurance will pay for the injuries and damages immediately. You do not have to go after the other driver, even if he is at fault. Conversely, instead of waiting for the insurance companies to figure out who is at fault, you get your medical and repair needs met right away. It does not matter who is at fault. What matters is that you purchased no-fault insurance, and that is what is saving the day for you.

How to decide how much insurance to purchase can be arduous if you don’t do the research. The way to do research is to shop around. We hope that these tips will also aid with your decisions while shopping for the right car insurance for you.