Types of car insurance in Canada

 

Types of car insurance in Canada

 

Auto insurance is mandatory throughout Canada and is intended to protect car owners from financial liability in the event of an accident. There are different types of auto insurance coverage available in Canada, and each type has its own advantages and disadvantages.

 

Types of car insurance in Canada

Here is a brief explanation of the most common types of insurance coverage:

 

1. Liability insurance:

·        The minimum coverage required by law in all provinces and territories.

·        Covers bodily and property damage to others in an accident caused by you.

·        Available with different limits of coverage, such as $20,000 per person, $40,000 per accident, and $10,000 for property damage.

 

2. Comprehensive insurance:

·        Also known as unspecified risk insurance.

·        Covers damage to your car from accidents such as collision, theft and vandalism.

·        Typically includes fire, lightning and flood coverage.

·        Available with different limits of coverage, such as the replacement cost of your new car or its market value.

 

3. Collision insurance:

·        It covers the cost of repairing or replacing your vehicle in the event of a collision, regardless of who was responsible.

·        They are available with different limits of coverage, such as $500, $1,000, or $2,000.

 

4. Uninsured driver insurance:

·        Covers the costs of physical therapy, rehabilitation, and loss of wages if you are injured in an accident caused by an uninsured or unknown driver.

·        Available as an additional option with many insurance companies.

 

5. Personal injury protection insurance:

·        It covers the costs of physical therapy, rehabilitation, and loss of wages if you are injured in an accident, regardless of who was responsible.

·        Available as an additional option with many insurance companies.

 

Factors affecting the cost of car insurance in Canada

1.     Location: Insurance rates are higher in major cities and areas with high accident rates.

2.     Your type of car: Expensive or high-performance cars are more expensive to insure.

3.     Your driving record: If you have a good driving record, you will pay a lower premium.

4.     Your age: Young drivers usually pay a higher premium.

5.     Insurance Coverage: The more coverage you choose, the more expensive the insurance will be.

 

Tips for getting the best car insurance rates in Canada

·        Compare prices from different insurance companies.

·        Raise your discount on good insurance.

·        Choose a higher deductible if you can afford the cost.

·        Combine car and home insurance with the same company.

·        Make sure you have the coverage you need.