A Quick Guide to Getting the Best Auto Insurance in Canada

Insurance is often one of those things you’re glad you have, although you hope you’ll never have to use it. In Canada, for instance, having auto insurance is mandatory compared to other countries. For many Canadians, driving a car is an essential part of everyday life. In 2019, there were over 35 million vehicle registrations, and as you can imagine, that’s a whole lot of potential accidents.

Daily commutes, road trips, and running errands will all be much easier and safe if you have auto insurance to protect yourself as well as other people.

Read on to find out more about why it’s important to have auto insurance in Canada and how to get the best one.

Find The Best Auto Insurance In Canada

It’s not always easy to find out which company offers the best auto insurance given the complexity of it and the number of variables that determine what you’ll pay in premiums, including where you live, your driving records, and the amount of coverage you need. Thankfully, there are a few simple steps you can take to feel confident that you’re getting the right amount of coverage at a good rate.

First, you’ll need to understand the different components of auto insurance policy and consult with the IBC (Insurance Bureau of Canada) for general information on the auto insurance rules specific to your province. Second, shop around to find the best auto insurance rates. You can get a quote from your bank or an insurance broker but don’t forget to compare rates online before you purchase auto insurance.

For instance, Ontario is Canada’s biggest province, so the auto insurance rates are among the highest in the country. To get the best Ontario auto insurance quotes you might want to consult with a broker to help you find the best policy at an affordable rate. However, keep in mind that it factors in your driving record, car details, and the coverage options you choose.

How Does Car Insurance Work?

Auto insurance covers damage to your vehicle and protects you financially if you’re liable for someone else’s damages or injuries. It can also cover medical expenses if you or your passengers are hurt in an accident. The premiums you will pay to an insurance company are based on the company’s estimated annual cost of auto coverage.

The auto insurance premiums are based on several factors, including how much the insurance company believes it will have to pay out in claims in the coming year. And in exchange for taking on your vehicle’s risk, you’ll pay the company monthly or annual premiums. The company then pools all the premiums from the drivers it protects into one large pool of premiums and then uses it to cover the losses of the drivers who make claims in the year.

However, make sure you review your contract in detail before you sign up for the coverage. You’ll need to ensure you understand the extent of your coverage since you’ll be covered for the losses in your auto insurance contract only. Although the contract may not be the easiest to understand, you can always speak with your insurance representative to get a better understanding.

Types Of Auto Insurance In Canada

Since auto insurance in Canada is legally required for all drivers, people who drive without it can face hefty fines. Additionally, they risk losing their savings or other assets if they are involved in an accident, and have to pay for the damages out of pocket. Auto insurance is regulated by the provinces and territories, so you’ll need to confirm what’s legally required in your area. Keep in mind that some insurance coverages are mandatory, while others are optional.

Mandatory Auto Insurance

• Third-party liability. This type of insurance covers the losses in cases where your vehicle causes injury or death to another person. It also covers damages caused by another vehicle to yours.
• Bodily injury insurance. Accident benefits coverage handles your medical expenses and loss of income in case of an accident. For example, In Quebec, this type of insurance is automatically rolled into your driver’s license registration fee.
• Uninsured motorist or automobile coverage. This type of coverage provides benefits to you or your family if you’re injured or killed by an uninsured motorist, and usually pays for vehicle damages.

Thoughts

Just because auto insurance is a mandatory expense, it doesn’t mean it’s not possible to knock some money off your insurance premium. Make sure you research rates for the particular car model before you start shopping, increase your deductible and take out collision coverage. To get the most value out of your auto insurance, you need to understand the coverages before purchasing the policy.