Tips 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.
Factors that affect 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 rate on 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.
Types of car insurance in Canada
In the following lines, we explain in detail the types of car insurance in Canada:
Compulsory insurance:
- Third Party Liability: This coverage covers bodily and property damage to others in an accident caused by you. All Canadian provinces require a minimum level of third-party liability coverage, but specific amounts vary from province to province.
- Uninsured Driver Protection: This coverage covers your car repair costs or your medical expenses if an uninsured driver hits you.
Optional insurance:
- Collision: This coverage covers repairs or replacement of your car in the event of an accident, regardless of who was responsible.
- Comprehensive: This coverage covers damage to your vehicle from non-collision incidents such as theft, fire or vandalism.
- Personal Injury: This coverage covers your medical expenses and loss of wages if you or one of your passengers is injured in an accident.
- Legal protection: This covers legal costs if you are sued over a car accident.
- Roadside Assistance: This service covers the costs of towing your car or repairing it on the side of the road if it breaks down.
- Insurance Waiver: This benefit reduces the amount you have to pay out of pocket in the event of an accident.