The Implication of a Canadian Car Insurance

Published: February 18, 2018

Updated: May 15, 2018



Just like every other insurance, auto insurance is a requirement and you should endeavor to get as much as you can pay for. Canadian auto insurance differs from one province to the next, but regardless of the cost, do not drive without an insurance cover – it may be a very expensive mistake.

The laws of Canada require every driver to buy auto insurance. Each application is assessed by the insurance company using many variables. The different rates depend on these assessments.

According to Canadian law, there is a minimum amount of insurance cover that is required. With the exception of Quebec, the coverage is about $200,000 for personal damage and injury to others. If the claim is higher, you will be liable for the balance apart from $10,000 property damage. The requirement for Quebec is one-quarter of that amount as the government covers injuries to individuals.

One strategy you might want to use when purchasing your coverage is to pay for the minimum. Thereafter, you assess your needs and assets to be able to buy extra insurance. Just like any other insurance, this is a protection against unforeseen calamity in the future.

Your insurer will be interested in knowing the details of your car, your age, gender, residence, the number of times you’ve received tickets for road infractions or had an accident. This assessment will be used to determine the rate you will pay.

It is typical in Canada for the basic policy to cover you if you are culpable and damage has been inflicted on someone else. This is referred to as third-party liability. The policy will protect you if you sustain injury during an accident. If a driver is not protected and you become a victim of a hit and run, you will be covered if you are afflicted with injury or you die.

Optional coverage that is also available includes collision, all perils both specified and comprehensive. All of these options or a combination of them is available for protection if you damage or lose your car as a result of theft, collision, fire and other risks. You need to evaluate your options and find out the cost. You may consider some options to be more important to you than others.

Also available is insurance coverage for your classic car. This has lots of specific requirements and the cost is on the high side. Nevertheless, when you consider how much work you have put into the vehicle and how much you have paid, you may consider it wise to obtain special classic auto insurance.

Generally speaking, insurance are bought through licensed brokers who are the middlemen between you and the insurance firm. They more often than not deal with different insurers and work to find the best insurance for you. They are independent, offer support and advice and they put your needs into consideration. You can choose to deal directly with a particular insurance company who will assess your situation and offer you their service. Nowadays, you can also buy auto insurance on the internet.

Protect yourself and your family by buying the best insurance policy you can afford. By taking this decision today, you may be saving yourself from colossal costs in the future.