Regardless if you own or lease a car, all Canadian drivers need car insurance. Not only is it the law, but it’s the best way to protect yourself in the case of an accident. Each policy offers different types of coverage. Here’s a look at car insurance in a nutshell.
What are the Different Kinds of Car Insurance?
Determining which car insurance coverage is right for you isn’t a one-size-fits-all proposition. For Canadian car insurance, you can choose from different types of coverage. These policies offer different levels of protection.
- Collision and Upset: This type of car insurance spares you the repair costs after an accident (or hitting an object). It also includes losses due to a roll-over.
- Coverage against perils other than collision or upset: You may know this insurance as “comprehensive,” but it’s had a name change. However, the insurance remains the same. This policy handles damages from falling objects or vehicle vandalism.
- All perils coverage: This policy combines collision and upset insurance with coverage against things other than a collision, like a vehicle theft. This car insurance covers more bases than the other two policies alone.
- Specified perils coverage: Theft, specific natural disasters, riots, and hailstorms are a few of the events covered by specific perils insurance. Policies may cover different instances, so check to see how a company handles perils protection.
What are Some Specific Canadian Insurance Policy Requirements?
With so many options, how do you know what insurance policy is right for you? Your Canadian auto insurance policy must follow the law too. Every auto insurance policy will include these basics:
- Third-party liability coverage of a minimum of $200,000: If you caused an accident resulting in death or injury, this mandatory coverage takes care of these expenses and legal fees — to a point. Insurance companies recommend purchasing additional coverage for added protection.
- Statutory accident benefits coverage schedule: Any pedestrian, driver or passenger injured in a vehicular accident receives coverage benefits. It doesn’t matter who caused the accident and, sometimes, includes family members in case of psychological trauma. Coverage may include things like income replacement, rehabilitation and other medical care.
- Direct compensation, property damage coverage and uninsured automobile coverage: When an accident happens, and you aren’t responsible, this part of your auto insurance coverage covers your car and the contents inside. Terms will vary, so read over an auto insurance policy to see what’s covered.
What Factors into My Car Insurance Rates?
Your driving history, age, gender and marital status can affect your car insurance rates. Some Canadian provinces, like those in the Northwest territories, require more coverage than others.
And, in some areas of Canada, your credit score can factor into the rate you receive. Ontario insurers cannot use your credit score to determine your rates. But, in areas like Nova Scotia and Saskatchewan, insurers can take a peek.
If you’ve been wondering, “How much is car insurance in Ontario” or any other Canadian province, the answer isn’t always simple. Your rates can vary widely across insurers. Turn to Kanetix for comparison tools to figure out your starting point, and whittle down your options from there.
Your Auto Insurance
It’s not a question of should you get car insurance, but which policy is best for you. Compare your options with Kanetix to help you hone in on the best options (and rates) for you.