Compare Auto Insurance Quotes in Canada
You must have a valid car insurance policy to operate a vehicle on Canada public roads. However, auto insurance requirements vary among provinces, depending on the insurance system each is mandated by – typically private or public. While you need to carry a minimum amount of third-party liability insurance, you may customize your policy beyond the required minimum coverage requirements.
Get the Best Auto Insurance Rates in Canada
Getting the best auto insurance rates in Canada shouldn’t be time-consuming. As with other types of insurance, you’ll get what you pay for and nothing more. It is always an excellent idea to look beyond the basics and obtain car insurance that fits your budget and needs and gives the financial protection you deserve. The good news is that there are also many ways to save money on cheap auto insurance quotes. But you should be ready to sift through a plethora of options.
Types of Auto Insurance
Here are the six types of auto insurance available when you purchase a policy.
1. Bodily Injury Liability
This type of insurance coverage applies to the injuries that you and members listed on the policy cause to other people. The other members on your policy are covered when driving other peoples’ cars with permission.
2. Personal Injury Protection (PIP) or Medical Payments
Personal injury protection pays for the treatment of injuries to you (the driver) and the passengers riding with you. At its broadest, this insurance may cover lost income, medical payments, and cost of replacing services usually performed by someone injured in a car accident.
3. Property Damage Liability
This insurance pays for the damage you may cause to someone else’s property. Typically, this means damage to another person’s car, but it may also include buildings, fences, lamp posts, or other structures damaged in an accident.
4. Collision
This insurance pays for damage to your car due to a collision with another vehicle, item, or flipping over. It may also cover damage that’s caused by potholes. This type of coverage is
typically sold with a deductible ranging from $250 to $1,000. A higher deductible will lower your insurance premium rates.
5. Comprehensive
Comprehensive coverage reimburses you for loss due to damage or theft caused by something other than a collision, including fire, earthquakes, falling objects, vandalism, or floods.
6. Uninsured and Underinsured Motorist Coverage
Uninsured auto coverage reimburses you if a hit-and-run or uninsured driver hits you. Underinsured coverage comes into play when the at-fault driver doesn’t have sufficient insurance to cover your losses.
Benefits of Auto Insurance
Most drivers carry auto insurance because the law mandates it, but that isn’t the whole story. There are many other benefits you’ll enjoy buying auto insurance.
1. Pay Now and Save Later
Auto insurance can help protect you from huge expenses. By investing a little money now in your protection, you will be a step ahead in avoiding costly future fees. Coverages like comprehensive, bodily injury and property liability can pay the costs of expensive claims should an accident occur.
2. Protect Yourself and Others
The right auto insurance policy will help protect you, your loved ones, passengers, and other road users. You can rest comfortably knowing that your coverage will take care of any bodily injury or property damage costs that may arise.
3. Supplement Your Health Insurance
Your car insurance policy may also help you pay for medical expenses that your health insurance policy won’t cover. For instance, your car insurance policy will cover the cost of medical treatments or dental work needed due to a car accident.
4. Peace of Mind
Any road user can make mistakes, and another driver’s mistake could become your problem. The right auto insurance policy gives you the confidence and peace of mind knowing you’re protected if an underinsured or uninsured driver hits you.
Auto Insurance FAQs
How Does Auto Insurance Work?
Car insurance is simply a contract between you and an insurance provider that protects you against any financial loss in case of an accident or theft. In exchange, you agree to pay a premium, and the insurance carrier agrees to cover your losses as outlined in your policy. Basic personal car insurance is mandated in most Provinces, but laws vary.
Coverages are often priced individually to give you customization options that suit your needs and budget. Policies are typically issued for a semi-annual or one-year period and are renewable.
How Can I Get Cheap Car Insurance?
Car insurance shouldn’t cost you a fortune. The first step towards obtaining cheap car insurance quotes is shopping around and comparing options. Insurance rates may vary mostly between companies, so you need to research which provider offers the best prices.
You can also get cheap car insurance by bundling insurance plans together, for instance, by insuring your car and home with the same company. Increasing your deductible may also lower your premium rates.
Other practices that can help you get cheap car insurance include paying your premiums in full, maintaining a clean driving record, and taking advantage of available discounts.
Can You Backdate Auto Insurance?
The answer is simply no. An auto insurance provider of good standing won’t agree to backdate your insurance policy under any circumstance. Rather than trying to backdate your insurance, obtain coverage even before you need it to ensure you’re fully protected.
How Does Auto Insurance Deductible Work?
A deductible is an amount you’re required to pay out-of-pocket when you file a claim. Unlike health insurance, your auto insurance deductible doesn’t reset each year. Instead, you are liable for your deductible amount each time you file a claim.
For instance, let’s assume the total damage to your vehicle after an accident amounts to $5,000. If you have a $1,000 deductible, you cover that cost and then your insurance company will pay the remaining $4,000.
The deductible you choose will impact your insurance premium rates. A higher deductible lowers your premium since it reduces the insurance carrier’s cost if you file a claim.
How Do I Choose Auto Insurance Coverage Amounts?
When it comes to choosing your auto insurance coverage amounts, it is advisable that you first find out your Province’s minimum liability insurance requirements. It is possible that the minimum coverage requirements may not deviate largely from what you need. For instance, most jurisdictions, whether private or public, require at least $200,000 in third-party liability auto insurance coverage.
When choosing a coverage amount, make sure you are covered for an amount that equals your assets’ total value. You can keep your premiums low by selecting a higher deductible.
