Whether you’re a driver who just got his or her first vehicle, or you`ve been driving for some time, you probably have some questions about car insurance. After all, you want to get the best possible premium for your needs, all without overspending your hard-earned money. So, without further ado, here is some “Car Insurance 101” that will provide the skinny on auto insurance in Canada:
1. Understand Car Insurance is Required by Law
In case you were hoping you could get away with not having car insurance, think again. Securing an auto insurance policy is required by law across Canada. It will typically cover not only you as the owner and driver of the vehicle, but also your passengers and any pedestrians and property that might be affected in case of an accident.
Auto insurance is also vital because you won’t be able to register or renew the license plate for your vehicle without having it. When your vehicle registration expires, you must prove you have car insurance before you can renew it.
2. Don`t Hand Over Your Keys to Your Friends
You’re a great friend, and if one of your pals asks to borrow your car to make a quick trip to the store, you might think nothing of handing him or her the keys.
Unfortunately, if you lend your vehicle to someone who is not on your car insurance policy and they get into an accident, your insurance record will be impacted and your premiums may go up. To verify who can drive your car, ask your insurance agent who your policy covers.
3. Know Your Premiums are Impacted by Several Factors
Not everyone in Canada pays the same amount for car insurance. When determining how much you will pay for your policy, insurance companies consider a number of factors, including your age, gender, driving record, the type of car you drive and the amount of your deductible.
4. Learn What Your Car Insurance Policy Covers
When referring to car insurance, the term “coverage” is the maximum amount of money your car insurance company can allot to you if you make a claim.
As mentioned above, all provinces and territories in Canada require you to have mandatory coverage and some may require more than others. You should also ask your agent about liability insurance, which covers losses if you cause injury to others. It also pays for the damage you cause to other vehicles.
However, it will not pay for any damage to your car, so you might want to think about getting additional insurance. Additionally, know that most car insurance policies will not cover the loss of any personal items.
But do know that if a burglar breaks into your and makes off with any possessions, your home or tenant`s insurance will cover these losses.
5. Shop Around for the Best Rates
To ensure you’re getting the best car insurance rates, and the best coverage for your needs, take the time to shop around. If you feel overwhelmed by the idea of contacting numerous car insurance companies, know you can get access to great rates from top brokers and financial institutions through websites like Rates.ca.
All you need is your driver’s license and vehicle information handy before uncovering various car insurance rates available to you in Ontario, as well as get quick quotes from several Ontario insurance firms. The site also offers you important information that will help you to make the best decision regarding your insurance.
Car Insurance: Necessary, but Not Necessarily Confusing
While you must have car insurance to legally drive in Canada, you don`t have to be confused by the process of securing a new policy. By knowing what is required and what will impact your rates, getting the right and appropriate car insurance for your needs does not have to be a stressful process.