Paying your full premium up-front tends to be less money in the long run, compared to making multiple, monthly payments. So make sure you understand the coverage you need when shopping around for car insurance. Regardless of the rules in your province, not having the right auto insurance policy in place will leave you financially vulnerable if you're ever involved in an incident. The other system is a tort-based system – many consider this to be inefficient as you'll need to deal with the at-fault driver's insurer to seek compensation. Several provinces have shifted towards a no-fault insurance system in which you only deal with your own insurance company when seeking financial compensation for a collision you were involved in (regardless of fault). In fact, in every province, you can customize your policy's coverages and amounts to further suit your personal needs.Īnother thing to understand about auto insurance in Canada is the differences between the accident claim systems. There, you buy injury coverage from the government and property damage from a private insurer.Įven though each province set's a minimum standard for coverage, most people purchase a more comprehensive insurance policy. Quebec, on the other hand, is a hybrid system that offers the cheapest car insurance rates. Alberta, Ontario, and Atlantic Canada have private insurance companies vying for your business which is why comparing car insurance quotes online is an effective strategy for uncovering lower rates. Third Party, Fire and Theft: A type of car insurance policy that covers damage done to somebody else’s car or property, plus for damage to or loss of your car in the event of a fire or theft.Even though auto insurance is legally mandated Canada-wide, the coverage requirements for a standard car insurance policy vary provincially (and it heavily depends on whether the province runs on a public or private insurance system).īritish Columbia, Saskatchewan, and Manitoba are public insurance markets where you buy auto insurance from the government (with the option of purchasing supplemental coverage from private insurers). So if you have an accident, you can’t claim for repair or replacement of your own vehicle, only for the damage you’ve caused to other people’s car or property. Third Party: A type of car insurance policy that covers only damage you cause to another person’s (aka third party’s) car or property. The premium can be charged monthly, quarterly, or yearly, depending on your preference. Premium: The cost of the insurance policy you have bought. No claim bonus: A discount applied to your insurance premium if you haven’t claimed on your policy over a specified amount of time. Policies will either provide Market value or Agreed value (see above) as the amount you’re insured for due to a total loss. Market value: The amount you would have to pay to buy a car of the same make, model, age and condition at the time of the claim. For example, accidents involving drugs or alcohol, reckless driving or unlicensed drivers, or damage caused by wear and tear. They are outlined clearly in each policy document and can be a variety of situations and events. You can choose your excess amount (a higher excess means a lower premium), but keep in mind you’ll have to pay the chosen amount at short notice if you need to claim.Įxclusions: Things that aren’t covered under your insurance policy. The excess can vary depending on the type of claim, so it’s a good idea to check the details in your policy documents. Plus, optional extras like no-excess windscreen repair, a roadside breakdown service or a rental car while yours is repaired.Įxcess: If you were to have an accident, the excess is the money you contribute towards the claim. Following an accident, you’re entitled to transport to your home or destination and vehicle removal from the site. And because having an accident can be tough, Comprehensive cover aims to reduce stress if it happens. It covers accidental damage to your car, plus loss or damage from a fire or theft and covers damage you cause to another person’s car or property. If specified within your policy, it’s the amount you’ll receive if your car isn’t cost-effective to repair or has been stolen and not found.Ĭomprehensive: A type of car insurance policy that covers a range of situations leading to accidental damage, along with added benefits and optional extras. Agreed value: The value of your car as agreed between you and AMI at the point of sale and renewal.
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