A Beginner’s Guide to Car Insurance Coverage in Canada
Updated: Dec 6, 2021
If you own a car, it would be in your best interest to be knowledgeable when it comes to the topic of car insurance. Now, many of you may be a little worried as this topic is often perceived to be one that’s complicated and convoluted. And while it can be rather tricky at times, it’s not something that you can’t easily learn if you put in the time.
If you’ve read our article on debunking car insurance myths, then you know that half of the battle when it comes to this topic is discerning valid information from false information. To help you out with this, we’ve prepared a brief guide on car insurance coverage in Canada. To simplify things even further, the main goal is to address the vital parts of insurance by tackling what is important in car insurance!
Insurance Coverage for Other Parties
The most important coverage for vehicle owners would have to be minimal liability and property damage coverage. Liability damage coverage protects other drivers on the road from potential harm that you could cause. And while you may not think that this is needed, it’s important to note that the latest data gathered by Transport Canada highlighted that there are over 150,000 cases of injuries due to car accidents every year.
On the other hand, property damage coverage does the same but for people’s property. Now, this doesn’t only cover cars as you could potentially damage other things such as guard rails or traffic signs. If such events do happen, property damage coverage will aid you up to a certain point, depending on the policy of your chosen coverage provider.
Insurance Coverage for Yourself
Aside from protecting others and their property, you’ll want to do the same for yourself and your vehicle. This is why you’ll also want to look into physical damage coverage that will help you deal with the costs of car repairs in case of accidents.
Typically, comprehensive coverage will deal with costs concerning everything that isn’t related to collisions. This includes but is not limited to fires, theft, vandalism, weather, and wildlife. Again, some of the things mentioned may not be covered as this will depend on your coverage provider.
Conversely, collision coverage will help you deal with the damages to your car caused by impacts. Now, this doesn’t necessarily mean car-on-car collisions. While vehicular collisions are included, you’ll also be covered in case you accidentally crash your car into other objects. It doesn’t matter whether it’s a tree or a stop sign, as this type of coverage will cover all collisions. One important thing to note is that the collision coverage will pay out minus your deductible. So, be sure to consider this when choosing a coverage provider.
Hopefully, this information proves to be useful when it comes to helping you understand more about car insurance. Be sure to keep all of the information mentioned above in mind when you’re looking for car insurance, as it can help you in case you ever find yourself in a financial bind due to automobile accidents. We also suggest going through insurance providers’ policies before purchasing their services because each place offers different policies that can be detrimental or beneficial for you as a car owner.
If you’re looking for the best prices for car insurance in Edmonton, AB, then Direct-Line Insurance is just what you need. We are an all-around insurance provider for homes, cars, businesses, and farms. For more information on our services, contact us today!