Full Car Insurance Cover: What’s there to gain?

Published: March 18, 2018

Updated: May 15, 2018

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Auto insurance is a huge expense for homes in Canada. The fact is that vehicle insurance in Canada is more expensive than in most countries. Auto insurance rates in Ontario are the most expensive in Canada – car owners pay premiums of an average of over $170 every month.

What’s more complicating is the fact that car insurance rules in Ontario are not very clear. The city of Ontario uses a combination of no-fault insurance and tort insurance (one party can sue the other). With seemingly arbitrary rules and high rates there are some facts about auto insurance in Ontario that you may find useful. You will find out as you read on.

According to legal requirements, every driver in Canada is expected to have an auto insurance cover. This is what permits them to drive legally and it is a strict obligation controlled by law. There are various types of auto insurance policies. Full coverage implies an all inclusive insurance policy that has the following:

Comprehensive:

This type of policy will protect your vehicle from any of the following occurrence:

  • Flood
  • Fire
  • Hail
  • Vandalism
  • Explosion or Earthquake
  • Windstorm
  • Theft
  • Riot
  • Windshield damage
  • Flying or falling objects
  • Damage due to contact with an animal or bird.

Some policies of this kind will in addition give you protection in situations such as when driving a borrowed vehicle. It is important to note that comprehensive insurance will not cover for all your losses.

Collision:

As you may rightly guess, collision insurance will protect the policy holder from financial loses when an accident occurs as a result of collision. Regardless of who is responsible, the insurance company is under obligation to pay for all the losses of the policy holder with the exception of deductibles. If you did not hit a car but you hit a telephone post, a tree or any object that result in damage, this policy will be very helpful in such situation.

Body Injury Liability Insurance:

This type of coverage pays for all the medical bills incurred as a result of an accident. It covers for situations whereby a policy holder or members of his family are responsible for an accident that caused injury to other people. It will pay for the expenses of the medical bill and also support the other affected party for your sake. This type of insurance will typically compensate any losses incurred by the injured party.

It will also cover for any cost for litigation that you may require if you are sued. This policy also covers individuals who use your car. It is important to note that if you get injured in the event of an accident, the company will not take care of your medical bills. You will bear the cost of your medical expenses.

Property damage liability Insurance:

This type of insurance will allow your insurance firm to cover for damages caused by you to someone else. This could be car damage, fences, buildings, telephone posts, or lamps. This policy will cover for all of the mentioned losses above but will not include any damage to your own vehicle.