After working hard and purchasing your perfect car, you might think you’ve attained the freedom you need. Unfortunately, you can’t drive anywhere without an auto insurance. Although paying for insurance may not be the most pleasant activity, its benefits are evident when you get into a car accident. If you’re considering Canadian car insurance, here’s what you need to know.
How Does an Insurance Coverage Work?
A vehicle insurance policy is similar to home insurance but specifically designed to protect your vehicle. You make regular payments, known as premiums, to an insurance company. These premiums are based on the company's estimate of the annual cost of coverage. The amount you pay is determined by the insurer's prediction of how much they’ll need to pay out in claims. The company then pools the premiums from all drivers and uses this money to compensate those who make claims during the year.
You can only claim accident benefits for the losses mentioned in your insurance contract. Before signing up with an insurance provider, you must review the contract details and ensure you understand the type of coverage. If you find it challenging to understand the car insurance coverage details, talk to your insurance representative to simplify the matter.
What Coverage Options Exist in Canada?
The minimum auto insurance level required in a country varies depending on the provinces. Here are some of the auto insurance coverages offered by various companies in Ontario:
Third-Party Liability Coverage
This is the most basic vehicle insurance type, and its mandatory coverage. It protects you against paying for the damages you cause to someone’s property. Moreover, it covers you if an individual gets injured or killed by an at-fault accident that you’ve caused. The minimum coverage must include the injured party's medical expenses.
Collision Coverage
This type of insurance protects you if you hit any property other than a vehicle and a third party's liability. You can have peace of mind knowing that you’re covered if you hit a guardrail or a barrier. This insurance policy can also protect you if you get into an accident with an uninsured motorist.
Comprehensive Coverage
As the name suggests, this type of insurance offers a wide range of protection. It covers medical expenses and collision-related damages. Moreover, it protects you in the event of theft or floods. All these services, however, come at an additional cost. This insurance type charges higher premiums compared to the others.
Specified Perils and All Perils
You can also consider signing up for two other optional coverage types: the specified perils and all perils. The specified peril insurance protects you against specified damages to your vehicle and weather-related calamities like earthquakes, fires, and windstorms. When you opt for all-perils insurance, it combines the protection you receive from collisions with comprehensive coverage.
Where Can You Purchase Insurance?
You can sign up for car insurance policies with licensed insurance brokers in Saskatchewan. Brokers research the market to find insurers that offer the best car insurance rates. You can also find an insurance agent representing an individual company. To ensure you get the best car for your needs, visit FFUN Cars in Saskatoon, SK.
