Buying Auto and Home Insurance from One Source

Insurance may not be the best topic of conversation for a Saturday night, but it’s certainly a topic you need to think about and act upon. Two of the most important types of insurance that you need to have are home insurance and auto insurance. Auto insurance is required in Canada for anyone who drives a car. Home insurance is typically required by your mortgage lender if you own a home.

Let’s discuss the basics of the different types of insurance and why you need them.

Auto Insurance

Let’s talk about insurance for your car. Since you’re required to have it if you drive, it’s very important to understand why you need it and how to keep your costs down as much as possible. What is auto insurance? Basically, it covers your vehicle if you are in an auto accident. It also covers medical expenses should you or someone else get hurt in an accident. Liability insurance is what covers the accident if it is your fault. Let’s say you are driving down the road and fail to stop at a stop sign. You run into another vehicle. The liability insurance covers the damages done to that car and the medical expenses that may be incurred. If you’re not covered with enough liability insurance to cover the expenses incurred, the victim could personally sue you.

In order to keep costs as low as possible for auto insurance, you want to avoid traffic violations and tickets as well as auto accidents. Your costs can typically be lowered if you take defensive driving courses as well. Another good way to lower your costs easily is to purchase both your auto and home insurance through the same company. The more products you have with your insurance company, the more discounts you may get.

Home Insurance

Home insurance is similar to auto insurance, but covers your home. Although there’s not a law saying you have to purchase home insurance, most mortgage lenders will require it as part of the loan approval. This type of insurance can vary in what is covered, but the basic policy covers your home in case of fire, theft or other accidents. There are different types of policies which vary in the amounts of types of coverage.

In this example, let’s say your house catches on fire. Depending on the type of amount of coverage, your homeowners insurance will cover the damage to your home so that it can be rebuilt. It will also cover the costs of replacing your furniture, clothes, and other contents that were damaged in the fire. An added benefit to the insurance is that it can cover your living expenses until you are back in your home. Again, the amount and depth of coverage depends on what you pay for.

Insurance for both your home and auto are very important to have and could save you a lot of money in the long run.