- Every government requires a driver to be covered under the vehicle’s insurance policy.
Insurance is money collected to cover the costs associated if the driver is ever in a collision.
Some provinces offer insurance through the government, while others use private companies.
You can get private insurance
- directly from an insurance company
- from agents who represent one company
- from agents who represent two or more companies
- from brokers who do business with many companies
- from auto clubs
- from employers, unions, or fraternal organizations offering group plans
Wherever you get your private insurance from, be sure to shop around and deal with someone who has a solid history of dealing with claims.
- Types of Private Insurance
Liability
- protects you if any claims arise when you are held responsible for a mishap or collision
- bodily injury
- covers claims involving other people from passengers to pedestrians
- property damage
- repairing or replacing public or private property
- the minimum provincial requirements are insufficient as you will be held responsible for any costs that exceed your policy coverage
Collision
- pays for replacement or repair to your vehicle, no matter if you are held at fault for the damage
- underinsured motorist insurance is more compete as it covers bodily injury
- due to the increasing cost of this coverage, a minimum amount (deductible) must first be paid before the insurance pays for damages
Comprehensive
- protects you from damage due to vandalism, theft, fire, floods, windstorms etc
- also has a deductible
Medical Payment
- specifically covers costs for ambulance, hospital, funeral services
Towing
- covers the cost of on-road repairs and having your vehicle towed
Insurance can be complicated. Talk to a broker who shows you the different options available to find out which works best for you.
- Insurance Costs
There are a number of factors which contribute to what your insurance will be.
Age
- youngest drivers pay the highest premiums
Driving Record
- traffic violations, collisions, previous claims etc
Vehicle Usage
- if you drive to work, car pool, or drive only for pleasure, your insurance changes
Marital Status
- married persons pay lower premiums
Gender
- women statistically drive less and therefore pay less
Vehicle Type
- the more expensive or sporty the vehicle, the more expensive it is
Residence
- higher density living areas pay more due to increased rates of vandalism
Discounts
- offered to those who take driver training courses!