Canadian Auto Insurance Coverage Explained

Shopping for vehicle insurance can be confusing for consumers - there are countless options available for automobile owners, and just as many prices to match. Understanding what each type of coverage can provide and what it costs can give you comfort and save you money. Here are some tips to make the process of finding the right car insurance faster and easier.

Liability Insurance

The only mandatory insurance coverage on vehicles is liability. This insurance protects others from damage that might be done by a driver while operating a vehicle. This includes any losses, including injury, death and property damage. Liability insurance in Canada also includes coverage to protect drivers against financial losses they might suffer due to their own medical expenses, and the loss of income that they could incur if injured in an automobile accident while driving. This portion of insurance coverage is referred to as accident benefits, and can be claimed even in the case of an at-fault accident.

Collision Coverage

Collision coverage provides financial compensation for damages that occur to the vehicle due to a collision or accident. Collisions include accidents with another vehicle or a stationery object. Collision insurance is often an expensive component of any insurance policy, and varies depending on the vehicle, driver, and many other factors.

Comprehensive Coverage

Comprehensive insurance coverage protects drivers against loss from events that aren't directly related to the operation of the vehicle or the driver's actions. This includes loss due to the actions of others, such as, vandalism (i.e. slashed tires or body damage - "keying") or theft (including the damage caused by thieves entering the vehicle). Coverage for environmental occurrences causing damage are also included under comprehensive insurance, including windstorms, floods, hail, etc. Additionally, in the case that a vehicle is damaged by a flying object (i.e. a construction pylon, debris from another vehicle) while parked, comprehensive policies will protect the driver from financial liability. Comprehensive insurance is often reasonably priced and provides peace of mind against unfortunate, uncontrollable occurrences.

Insurance coverage and costs vary drastically depending on the types of coverage purchased. Auto insurance providers offer many options and competitive rates on their policies, but consumers have to be prepared to shop around to get the best rates. When looking for cheap auto insurance, consumers can look for quotes in many ways, but the easiest and least intimidating way is often looking for insurance online. This allows auto insurance buyers to shop at their convenience without any external pressures, while comparing large quantities of quotes in a simple and effective way.