Understanding Car Insurance

Owning a car means you will need to become familiar with two words: car insurance. While those two words may cause a headache for some people, automobile coverage is still a necessity for anyone that drives a vehicle. Car insurance is required in all provinces of Canada, which means understanding the vehicle insurance market is very important.

Auto insurance is a contract between you and an insurance company. By paying a premium, the insurance company will insure your vehicle up to the policy amount you have chosen, in the event you are involved in an auto accident. The coverage is promised to pay these specified amounts for the duration of the policy.

There are several different types of car insurance available to consumers. Liability insurance is required in Canada. This third-party insurance covers the costs of medical bills and property damage to the other person involved in the accident.

Additional Insurance you can Purchase

Other types of coverage may also be added to your policy if you choose. These types of coverage include uninsured motorist, collision, and comprehensive coverage. Uninsured motorist coverage will cover the costs related to an accident with a driver who does not carry the required coverage, or whose policy amounts are not enough to cover the damages of the accident.

Do I Need Additional Coverage?

It is important to talk to the insurance agent about the types of insurance that are available and whether or not they are of value to you.

Car insurance does not have to be a headache. It can be one of the best things you ever purchase, especially if an accident occurs. Arm yourself with the knowledge of car insurance so that you can make well informed decisions that are cost effective and give you peace of mind.