Your Most Burning Tips About Car Insurance Companies in Canada

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In which ever country you live, car insurance is a must, even though, many people think that car insurance is a necessary evil. As long as things go well and no untoward incident happens, you are safe. But, accidents cannot be put to an end and they happen frequently and as a result, the driver of the car is injured or other passengers got injured because of these accidents. There can be even death toll in such accidents.

In case of such fatal accidents, instead of blaming on each other, we should look for a remedial measure and this could be achieved by way of availing car insurance.

Car Insurance in Canada:

It is illegal to drive a car in Canada without proper insurance. If you are the owner, you must have insurance coverage. On the other hand, if you regularly drive a car that belongs to your friend or relative, ensure that you are listed on their auto insurance plan. These are all the basic plans of car insurance, Canada.

Canada car insurance offer different plans and some of them cover the cost of the damages and injuries to others, if you are at fault in making an accident. There are also plans that cover injuries to you and the cost of the damages caused to your car too.

The cost of the car insurance offered by the car insurance companies in Canada depends on the coverage, you select and on some other factors such as your age, driving experience, driving record and the province or territory where you live.

The Basics:

The coverage or costs of car insurance in Canada varies by province or territory. Minimum liability insurance for most of the parts of Canada is $250,000 and the minimum liability being $50, 000. But, it is always advisable to purchase more than the minimum. Insurance procedure is almost same in all provinces and territories, except for a few variations.

Whether you buy a new car or a used one, it is advised to buy collision and comprehensive coverage. In some of the provinces like Northern Territories, you have to purchase auto insurance from private insurers and in some areas, you can get insurance coverage from private Canadian car insurance companies or from Government agencies.

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Selection of Insurance Policies:

Many car insurance companies in Canada offer discount on car insurance premium rates provided, the car you buy has some special features such as anti-theft devices, alarm systems, anti-lock brakes, child safety locks and twin airbag systems. There are some cars, which are prone to high risk for vandalism or theft. Such cars will carry higher car insurance premiums and you have to be careful in these cases. It is also better to check the safety record of your car and get additional tips by contacting Insurance Bureau of Canada.

Important points to be noted:

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1) One must keep a good driving record in order to keep the premium low. Accidents and violations are kept in your driving records for many years. Insurance companies decide the insurance premiums on these track records.
2) You must understand that all companies do not charge the same for the same coverage and it depends on various factors such as the brand of your car, your driving record, risk factors and more.
3) As far as the car insurance quotes, Canada is concerned, a broker or an insurance agent cannot quote insurance rates for more than two or three companies they represent and it is better to search online for better quotes that suits you.
4) If you opt for higher deductibles, it may lower your premiums. But, you may have to spend more money from out of your pockets in case of any accidents. As long as there is no accident involved, you can enjoy the lower rate of insurance premiums.
5) If you drive an older car, you can talk to your insurance agent and get a significant cut from your premiums and you can opt out of collision and comprehensive coverage.
6) If new driver undergo an accredited driving course, then he or she will be qualified for a significant discount from many insurance companies.

Types of Coverages:

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Third party liability insurance coverage is the most important part of your car insurance and this is made as legal and necessary in almost all parts of Canada. If you cause injury to any third person or damage other’s cars, this coverage will compensate major portions of the damages done by you.

There is another insurance coverage called statutory accident benefits coverage and this provides you financial compensation, if you are injured in an accident. This will cover your out of pocket costs for your medical expenses, replacement income if you cannot work for a certain period due to an accident and reimburse you other eligible costs, as specified in the policy.

Uninsured automobile coverage will protect you from the accidents caused by irresponsible and uninsured drivers. If an uninsured driver is held responsible for the accidents and caused your death or caused the death of your family members or your car is damaged badly, you will be financially compensated by this coverage.

Apart from the above coverages, there are additional coverages and it is up to you to opt for such coverages. You have to examine the coverages of the policies and select the one that suits your needs. For instance, if you are in the habit of renting a car on a regular basis, rental insurance coverage can be included in your car insurance policy, which will make a financial sense.

However, one can refer to Canada car insurance quote online and select the best options that suit your requirements and circumstances.

Conclusion:

By law, car insurance is mandatory for all the vehicles which are operated on the roads of Canada. One must understand that what type of car insurance is necessary and what is optional. You must also understand how car insurance premiums are calculated and select the better options. Anything about car insurance companies can be had from the respective websites and there are brokers and agents to help you in this regard. Obey the rules of the States and live a peaceful life.

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