What Are The Different Types of Car Insurance Available In Canada?

In all areas of Canada, every drivers is required to carry a minimum amount of insurance. It does not matter whether you are in Alberta or Quebec, there is standard insurance policy that is mandatory for legal vehicle operation. If a person is found to be driving a vehicle anywhere in Canada without this coverage they can face stiff penalties such as fine, license suspension, and vehicle impounding.

Liability Coverage
The minimum amount of insurance needed to cover liability and medical payments to accident victims is different for each Provence. Reporting the correct region you live in while getting an insurance quote can make a drastic difference in the minimum payments and item coverage required. Getting the best cost and coverage possible becomes even more important if you want expanded coverage, such as collision or theft protection. Mandatory insurance coverage in most areas at the very least covers the medical costs of injury to others their car repairs in the case of an accident where you are found liable, and thus the reason it is often termed liability coverage.

Collision Insurance
Moving beyond mandatory coverage there is collision coverage. Collision coverage insurance covers not only the costs of a second party in the case of liability issues, but also pays for the vehicle repairs and medical costs of the policy owner even in the case of being found liable. This type of insurance policy is more costly than the minimum liability insurance, but has more in the way of coverage benefits in the case of an accident. Most policies will also cover costs if you are involved in a collision with another driver that is not insured by default or for an additional fee.

Comprehensive Coverage
The other most common form of Canadian insurance policy is the comprehensive coverage policy. Comprehensive policies come in many forms, and have the most options available of the three types of basic plans discussed.. A comprehensive policy usually entails not only simple medical and collision costs if involved in an accident, but may also cover ancillary insurance needs such as theft or even flood coverage. A comprehensive policy is the most useful when looking to tailor a policy to substantially reduce risk based on individual needs and assessment. Liability and collision policies are more likely to vary only in amounts of coverage and premium costs, while comprehensive coverage allows for a much more robust buffet of coverage and premium arrangements and choices.

4 More Things To Consider When Choosing Coverage Types
There are 4 additional considerations should be kept in mind when looking through your insurance coverage options.

1. Always Shop Around
Insurance rates can vary drastically from one insurance offer to another. Make sure to get as many car insurance quotes from as many sources as possible before you make a final decision.

2. Get a Loyalty Discount
One of the easiest ways to get the best insurance coverage possible or a cut rate on your policy is to check to see if your current home or life insurance has a special vehicle coverage rate or expanded coverage package for current clients. Often loyalty pays.

3. Know Your True Risk Tolerance
Always know what type of coverage you are looking for and how large of a deductible you can afford. One often offsets the other. You know your own tolerance for risk more than anyone else. You need to convey that information during the quote process.

4. Are You A Good Driver?
Prior driving records of individual drivers can make or break your premium expenses. Having an excess of traffic violations can make premiums go up or even make one ineligible for certain coverage types. The opposite is also true, so make sure to ask about good driver discounts as well.

Knowing what type of insurance policies are available, as well as the variables that each unique driver brings to the table is the key to getting the best automotive insurance possible. Where you live, the type of car you drive, and driver history are just a few of the different factors that can affect either the amount of coverage available or the premium and deductible arrangement to obtain it. The most important advice one can follow is to obtain car insurance quotes from reputable sources and lay all of the information on the table. Insurance in Canada is designed with both the safety and responsibility of everyone on the road in mind. There are plenty of options. One of them is right for you.

Leave a Comment