Purchasing a car in Canada, whether you are a young driver, a new driver, or a recent immigrant, is a great achievement. However, this achievement comes with the necessity of purchasing insurance for your vehicle. Purchasing insurance may not be very challenging, but choosing the type of insurance is. So, how do you find the right policy to secure your vehicle? And where do you start?
A plethora of options for insurance policies are available in the market, but it is challenging to determine which policy is best for you. Navigating through numerous policies to find the best one for you can be complex. Therefore, in this article, we will talk about the things to know before you purchase car insurance for the first time with the help of the best insurance brokers in Canada.
Why is Auto Insurance Necessary?
In Canada, according to the law, it is necessary for all individuals to secure their vehicles with insurance to ensure protection for the drivers, including the individuals with a leased vehicle. Mandatory auto insurance acquired with the help of an insurance company in Calgary will protect the people involved by another driver in an accident and will hold them accountable for causing any harm to others or their vehicles. This also helps to encourage drivers to maintain safety standards and driving behaviour on the road.
Accidents can happen at any time. Insurance can protect you from several consequences by managing your financial risks. The insurance coverage makes it easier for the victims of car accidents to get compensation for the party at fault or claim the cost associated with the result of the accident, such as damage to the car, healthcare or lost income.
Does Auto Insurance Include Mandatory Coverage?
Having auto insurance with the help of an insurance company in Calgary is mandatory in Canada. However, every province and territory has established its own regulations associated with the minimum coverage requirement for vehicles. It is essential to contact the best insurance brokers in Canada to get the latest information about the rules for insurance coverage, as they are always subject to change.
The types of coverages that are mandatory for auto insurance include:
- Third-party liability: If you are responsible for causing damage during an accident, then you will stand accountable for the damage caused to others, which includes injuries and property damage. The cost of repairs or replacement caused by the damaged property or vehicle, medical bills for injuries to other individuals, and legal expenses will be covered by third-party liability insurance. There is a mandatory minimum coverage amount under this insurance; however, you can always opt for more coverage.
- Uninsured Automobile Insurance: If the accident involves a driver who is uninsured and/or unidentified, then uninsured automobile insurance purchased with the help of the best insurance brokers in Canada will protect you when the individuals at fault are unable to cover the damage. This situation includes hit-and-run damage.
- Accident Benefits: If the accident caused you injury, then no matter who is at fault, the accident benefits will cover you for the medical and incidental expenses caused by accidental injury or loss of income.
- The minimum coverage requirement under this insurance includes:
- Medical
- Rehabilitation
- Attendant care benefits
- Income
- Replacement benefits
- Caregiver benefits
- Housekeeping and home maintenance
- Death and funeral benefits.
Does Auto Insurance Have Optional Coverage?
Having the minimum coverage for your vehicle may result in leaving you vulnerable to several exclusions. Some additional coverage may be required for you to ensure complete protection regardless of what happens during the accident. The types of optional coverages that you can get with the help of an insurance company in Calgary to enhance your protection include:
- Direct Compensation Property Damage (DCPD0
- Collision Insurance
- Comprehensive Insurance
- Specified Perils Coverage
- all-Perils Coverage
- Accident Forgiveness Coverage
How Much Will Your Auto Insurance Cost?
The cost of auto insurance varies from your requirement as well as different factors affecting it, such as:
- Your vehicle
- Your location
- Your driving history
- How much do you use your vehicle
- Who drives your vehicle
- The discounts you are eligible for
Discuss all your requirements with the best insurance brokers in Canada to find an absolute insurance coverage option to protect yourself from any unfortunate damage.
