What You Need to Know About Car Insurance in Canada
Updated: Dec 6, 2021
Car insurance is mandatory in Alberta. If you’re looking for one, you need to get a reasonable insurance premium, right? In Alberta, your premium will be based on several factors that are unique to you and your situation. These factors can impact the cost. With that, here are important things you need to know about car insurance:
The Type of Coverage You Need
In Canada, all vehicle owners must carry the minimum amount of third-party liability insurance required by the laws of your province. If you have a car loan, your lender will mandate extra coverage.
Most of the time, lenders will require collision and comprehensive coverage, along with minimum liability coverage. In Alberta, the provincial government decides the minimum level of liability insurance for its drivers.
Therefore, if you plan to move to a new place, you may need to adjust car insurance limits to meet the requirements of the Canadian province you’re in. In addition to that, lenders can demand borrowers to purchase certain car insurance levels, and borrowers must comply.
Accident forgiveness maintains a vehicle owner’s auto insurance premium rates after an at-fault accident. In that case, the insurance company “forgives” by not raising the premiums after a first accident. However, accident forgiveness added to a policy is important before an accident occurs. If you get this, you will be charged a higher premium.
Also, not all accident forgiveness terms and conditions may cover all specific damages. There are different limits or exclusions cited in their accident forgiveness terms.
When you’re shopping for car insurance, you will hear the term deductibles a lot. What does it mean?
The insurance deductive is the amount a vehicle owner pays when settling a car insurance claim. For example, in collisions, the deductible only applies when the driver is determined at fault in an accident. In most cases, insurance companies subtract the deductible from the money needed to pay the claim.
When you agree to a higher deductible, you can have lower car insurance premium rates. On the other hand, smaller deductibles often imply higher car insurance premiums.
Car Insurance Broker vs. Agent
From whom you purchase your car insurance policy can make a lot of difference. In Canada, vehicle owners purchase the insurance directly from the company, from an insurance agent or broker.
An insurance agent works directly for only one insurance company, which means they are limited to what a certain company offers. On the other hand, an insurance broker will have access to many insurance companies’ products and services; that way, you will be presented with other choices.
Protect Your Vehicle in Canada Today
Car insurance is important in Canada. So, if you own a vehicle, you need to ensure you have the right car insurance coverage to ensure you’re protected and safe while on the road.
Get excellent car insurance quotes in Edmonton, AB here at Direct Line Insurance. We are one of the most well-established brokerages in the area. Contact us today to get started!