Canada car insurance
Overview: Having a proper car 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 car 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 car insurance by law, you may be well advised to have insured for a bigger amount so as to provide proper cover for your belongings. In the case of claims of body injury and loss or damage of property where the limit of the policys liability is crossed, the corresponding payment would be limited. This limit is fixed at $20,000 in the case of Newfoundland, New Brunswick and Yukon. In other places, other than Quebec, it is $10,000. In Quebec, personal injuries by the natives are prohibited. There is a fund allocated for paying the medical costs and other sufferings for the treatment of injuries resulting from car accidents. The person will also be compensated for his sufferings and loss of income during his/her recovery period. In Quebec, the full amount provided by liability insurance is for paying for the claims of property damage that are caused due to accidents occurring in Quebec.
Where to avail car insurance in Canada
Government owned insurance companies provide car insurance in certain provinces like Manitoba, B.C, Quebec and Saskatchewan. Elsewhere in the country car insurance is provided by licensed agents, brokers, credit union and recognized banks.
Factors affecting car insurance rate:
- Drivers age and record: car drivers older than 25 years of age have to pay lesser for insurance than those below the age of 25. This is because the young drivers generally get involved in accidents more frequently and therefore get more traffic tickets. With each traffic ticket you receive, your premium will go up.
- Location: the place where you live and the hospital and medical costs in that area affect your insurance cost. Also, factors like the frequency of vehicle theft and hooliganism also have a say in determining your car insurance premium.
- Type of car : The types of car that is more prone to cause accidents, for eg, sports car need higher amounts of insurance.
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