What it Means to Have Canadian Car Insurance


As with all insurance car insurance is a necessity and you should try to get as much as you can afford. Canadian car insurance varies from one province to another but whatever the cost one should never drive without insurance. That may be a very costly mistake.

Canadian law requires all drivers purchase automobile insurance. The insurance companies assess each application against many variables. The various rates are based on these assessments.

There is a minimum amount of insurance coverage required by Canadian law. Except in Quebec, the coverage is up to $200,000 for injury and personal damage to others. Should the claim be higher then you will have to be liable for the balance except for $10,000 in property damage. Quebec has a requirement of one quarter of that amount because the government covers injuries to individuals.

A strategy you may want to consider in buying your coverage is to buy the minimum. Afterward you evaluate assets and needs in order to buy additional insurance. This, as any other insurance, is a protection against some unforeseen disaster in the future.

Your insurance company will want to know the details about your car, how old you are, the number of times that you have had an accident or received tickets for road infractions, your gender, and where you live. They will assess your risk factor with this information. From this assessment they will set the rate you pay.

Typically in Canada the basic policy will protect you if you are liable and there is damage to another person. This is referred to as third party liability. The insurance will protect you if you are injured in an accident. If a driver is not insured or you are a victim of a hit and run there is coverage provided should you be injured or die.

Also available as optional is coverage including all perils, comprehensive and specified perils, and collision. All of these options or a combination are available for protection should you lose or damage your car due to fire, collision, theft and other risks. You evaluate your options and then find out the cost. You may feel that some are more important to you than others.

There is also coverage for your classic car. This has many stipulations and the cost is rather high. However, after the amount you have paid or the work you have put into this vehicle you may think it is very wise to have the special classic automobile insurance.

Generally you buy insurance through licensed brokers who are really intermediaries between you and the actual insurance company. They usually deal with different companies and try to find the best coverage for you. They are independent, offer advice and support, and are very respectful of your needs. You may want to deal directly with one specific insurance company who will assess your requirements and offer you the service. Today, you can also buy automobile insurance online.

Protect yourself and your family. Try to purchase the best insurance that you can possibly afford. In spending it now you may save yourself some outstanding costs later.

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Canadian Car Insurance FAQ:

Question: Why is canadian car insurance so expensive for newly arrived immigrants?
I was paying 250 quid in the uk and now they want $3000 odd! Talk about havin me pants down! Any ideas on the best insurance company to use?

Answer: Because your driving history didn’t follow you. Some things you can try:

1) Get the UK to supply you with a certified printout of your driving history (driver’s abstract)
2) See if your UK Insurance provider has a Canadian Subsidiary
3) Visit insurance hotline as they will instantly compare rates filed with the the insurance regulators and you can see who is best for you. Rates can vary by thousands for the same driving history and same vehicle

Question: Is there a website where I can get a canadian car insurance quote?
I know there are some, but I’m looking for one that doesn’t require your personal information. And if possible one that can let you enter in vehicles older than 1995.

Answer: I would start by calling up the company that your parents are insured with and ask them for a quote. Be sure to point out that your family has been insured with them for x years. Sometimes, you can get the best deal of all just by staying with that company.

Also, you can ask at your banking institution. They are often allied with insurance companies — like TD Canada Trust, which also has TD insurance. That way, they already know most of your information and only need to ask a few more questions.

Another possibility is an insurance broker. This is not the same thing as an insurance agent. A broker deals with several insurance companies and looks at your unique situation and can recommend the best (for you) of the companies he (or she) deals with. To find one near you, look up insurance brokers in your yellow pages. They are, of course, listed after the insurance agents — just don’t confuse them, because the agents are the representatives of only one company.

Question: Does your canadian car insurance rate go down if you have a child?
We are expecting a baby and people keep telling us this, but not sure if its true.

Answer: With children it usually goes up.

Question: What Canadian car insurance company will give me the lowest rate if I’m just buying my first car at 18?

Answer: I don’t know about the lowest rate BUT I will advise you to google any company for their payment of claims. Cheap insurance is one thing but if they don’t pay the claims, what good are they.

Question: If I am traveling to Canada do I need canadian car insurance?

Answer: To drive your vehicle legally you are required to have proof of insurance. The necessary document can be obtained from your insurer in the US and will be required if you are stopped for any reason and asked for proof of insurance. While you do not require specific “Canadian” insurance your are required to have proper insurance on your vehicle.

Question: Can I borrow my friend’s car under his insurance for a day under the canadian car insurance law?
I need to borrow my friend’s car to go to niagara falls for one day? Can I do that? I currently live in toronto and I have no idea for the insurance rules here?

Answer: You can with his permission. You aren’t planning on crossing the border, are you? If you do I don’t know how that would work. I suppose a notarized “He has permission to use my car on this date” would help if you are.

Question: Are credit scores used in Canadian car insurance rates?

Answer: It depends on what province you live in. In provinces where it is all private (Ontario, Alberta, Maritimes, Territories) it is becoming more and more common, however not all companies use it. Government run insurers do not use credit as a basis for determining rates.

Question: Why are car insurance rates in Canada almost 3 times of US cities?
Canadian Car Insurance rates are off the roof. It doesn’t make sense to me.

Answer: Depends on where in the US you are comparing rates to. Plus you do realize the minimum liability limit you have to carry in every province/territory in Canada (except Quebec where you can’t sue for bodily injury and only need to carry property damage liability) is $200,000/accident (there are no per person limit) where in the States it can be as low as $20,000 per accident (Louisiana and Oklahoma).

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