Types of car insurance in Canada
Car insurance is mandatory throughout Canada. The law requires all vehicle owners and users to obtain minimum third-party liability insurance coverage.
Types of car insurance in Canada
- Third Party Liability: This coverage covers bodily and property damage to others in the event of an accident caused by you.
- Indirect accident insurance: This coverage covers damage to your car in the event of an indirect accident, such as a collision with a parking lot or an animal.
Additional types of coverage
In addition to the minimum required coverage, you can also purchase additional insurance coverage to further protect yourself. Some common additional coverages include:
- Comprehensive coverage: This coverage covers damage to your car from incidents such as theft, vandalism, or natural disasters.
- Collision insurance: This coverage covers the costs of repairing or replacing your vehicle in the event of a collision.
- Uninsured Motorist Insurance: This coverage covers your medical expenses and the costs of repairing your car in the event of an accident with an uninsured or disqualified driver.
- Income Replacement: This coverage covers a portion of your income in the event that you are unable to work due to an injury resulting from a car accident.
Factors affecting the cost of car insurance in Canada
The cost of your car insurance depends on a number of factors, including:
- Location: Insurance costs are usually higher in areas with high accident and crime rates.
- Type of vehicle: Performance and luxury cars are usually more expensive to insure.
- Driving Record: Drivers with a poor driving record usually have higher insurance costs.
- 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 between different insurance companies: Not all insurance companies offer the same prices, so it is important to compare prices before purchasing an insurance policy.
- Increase your insurance deductible: You can get discounts on your car insurance by following safe driving practices, such as using a seat belt and avoiding driving under the influence of alcohol or drugs.
- Choose a higher deductible: Choosing a higher deductible can lower your premium, but you’ll have to pay more out of pocket if you’re involved in an accident.
- Consider your insurance package: Some insurance companies offer discounts on insurance packages that include auto insurance, home insurance, and renter’s insurance.