The importance of car insurance in Canada

 

The importance of car insurance in Canada

 

What is car insurance? It is a contract between you and an insurance company that provides you with financial protection in the event of a traffic accident. In Canada, all car owners are required by law to have insurance that covers at least a minimum level of liability for damages to others.

 

Types of car insurance in Canada:

Liability insurance: This type of insurance covers bodily and property damage that may be caused to others in an accident caused by you. The minimum required liability coverage in Canada is:

·        $200,000 in bodily injury liability insurance per accident

·        $20,000 for property damage liability insurance per accident

·        Comprehensive insurance: This type of insurance covers damage to your own car, regardless of who was responsible for the accident. Comprehensive coverage may include things like theft, vandalism, and natural disasters.

·        Collision: This type of insurance covers the costs of repairing or replacing your car if it collides with another car or fixed object.

·        Personal injury protection: This type of insurance covers your medical expenses and loss of wages if you are injured in a car accident.

·        Non-Owned and Underinsured Insurance: This type of insurance covers damage to your car if you are hit by a car that does not carry insurance or carries insufficient insurance.

 

Factors affecting the cost of car insurance in Canada:

·        Location: In general, insurance costs are higher in larger cities and areas with high accident rates.

·        Type of car: Expensive and sports cars tend to be more expensive to insure than small, economy cars.

·        Driving Record: If you have a clean driving record, your insurance costs will be lower.

·        Your age: Young people between the ages of 16 and 24 are usually the ones who pay the most for insurance.

·        Coverage: The more coverage you choose, the more expensive the insurance will be.

 

Tips for getting cheaper car insurance in Canada:

·        Compare prices between different insurance companies before purchasing a policy.

·        Choose a higher discount.

·        Increase your safe driving record.

·        Take defensive driving courses.

·        Make sure you take all available discounts, such as a student discount or multi-document discount.

·        Include your car with your home insurance.

·        Consider purchasing a used car or economy car.