Auto canada insurance
Having a proper auto insurance is not only important personally as it provides cover for damages in the event of an accident, but is also mandatory as per the law in Canada to have a minimum amount of auto insurance cover for all drivers in the country. The type and the amount of coverage may differ slightly among different provinces.
Insurance requirements in Canada: In Canada, all drivers are required to have third party insurance which provides compensation for the death or injury caused by you to another person, or for any loss or damage in property inflicted thereof. The minimum amount of this insurance needed is $200,000 in places other than Quebec, where the minimum requirement is $50,000. If you live in Manitoba or Saskatchewan, you must also possess coverage for physical damage to insure your vehicle against damages.
Although it requires a minimum amount of insurance by law, you may be well advised to have insured for a bigger amount so as to provide proper cover for your belongings.
Types of auto insurance coverage available in Canada:
1) Liability: liability coverage compensates for damages, up to a fixed amount, which the insured becomes liable according to the laws, due to an accident or other mistakes from the part of the insurance holder.
Liability coverage can be availed as a combined single limit policy or as a split limit policy.
A combined single limit combines the property damage liability coverage and the normal">bodily injury coverage into a single combined limit. For instance, if a car which is insured under the combined single liability limit causes an accident which injures the driver besides causing damage to the other car, the damages caused to the other drivers car and the injury caused to the driver, will be compensated for under the same coverage.
Split limits: under the split limit liability coverage, the coverage for property damage and that for bodily injury are considered separately. According to this coverage, the payments towards the damages caused to the vehicle (in the above event) will be paid under the property damage coverage, while those for the injuries will be done under the bodily injury coverage.
The bodily injury liability coverage is usually split further into maximum payment per person and a maximum payment per accident.
2) Collision coverage: Collision coverage provides cover for a vehicle which gets involved in an accident. This coverage is subject to a deductible [c1]. Collision coverage compensates for the repair of the damaged vehicle, and if the vehicle is beyond repair, the cash value of the vehicle will be paid.
3) Comprehensive coverage: This type of coverage provides insurance which is subject to a deductible, for the vehicle that suffers damage due to causes other than collisions, like fire, inclement weather, theft or accidents caused due to animals.
4) Uninsured / underinsured coverage: known also as UM/UIM, under this coverage, if the party who caused the accident doesnt have insurance at all, or doesnt have enough insurance to cover the damage, the company provides cover.
5) Loss of use coverage: This provides compensation for rental expenses connected with the repair of an insured vehicle due to a loss under the cover.
6) Loan / Lease payoff: This coverage aims to provide cover to consumers, which is based on the buying and market trends. This is intended to protect the consumers against what is called the negative equity, which occurs when there is a sudden decline in the value of the vehicle soon after the purchase which is followed by a period where the amount owed on the vehicle loan actually exceeds the value of the vehicle.
The ever rising prices of vehicles together with log term auto loans have resulted in the development of GAP protection. GAP provides protection for consumers in the event of a gap existing between the actual value of the vehicle and the money owed to the finance company.
7) Car towing insurance: The auto insurance companies conventionally have a policy of providing cover only for the tow that results from an accident that is covered under the policy taken by the insured. This had resulted in a lack of coverage in the case of tows related to mechanical reasons, flat tires, and running out of fuel. To provide cover for this, companies developed the car towing insurance which pays for tow not related to accidents.
To choose you auto insurance: there are a number of websites available in the internet, which offer you a fast and easy way to compare the different policies and help you to reach a decision about the right one that suits you.
You have to provide basic information to the websites, such as
The model, the type and the year of manufacture of the vehicle
Your personal information
Your driving history, such as the distance you cover each year and the any past occurrence of accident.
Coverage amounts you prefer (besides the minimum that is require by the law.)
Deductible amounts you prefer for comprehensive and collision coverage.
After you provide the relevant information, youll be given a number of quotes from top rated companies for you to make a choice.
Top auto insurance providers in Canada:
These are some of the leading providers of auto insurance in Canada.
1. The insurers financial group: Located in Richmond Hill, the company provides its services in the whole of Ontario.
2. Mac Vanderhout Insurance Brokers limited:
Suite 102,1005 Skyview Dr.
Burlington, ON L7P 5B1
3 The co-operators general insurance company
Service Quality Department
130 MacDonnell Street
Guleph, ON N1H 6P8
A deductible is an amount that you agree to be responsible for in the event of a loss under the physical damage (collision or comprehensive) coverage of your policy
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