When you drive in Canada, it is not just a recommendation that you carry car insurance – it is the law. Vehicle insurance is meant to protect you and your car if you are in an accident. You are legally obligated to report any accident within seven days if you sustain an injury, whether or not you are the driver who is at fault.
Based on where you live in Canada, there are different types of policies that you can take out in addition to the minimum required coverage. The only way to make sure that you are fully covered in an accident is to know what the different types of coverage are, and which ones you need to limit your out-of-pocket expenses if the unspeakable should happen.
Statutory Accident Benefits
Statutory accident benefits are what you take out to cover you in an accident whether you are liable or not. The types of coverage afforded in statutory accident benefits encompass medical costs, which include things like the need for rehabilitation, self-care, and if you lose income due to your injuries.
If you should be in an accident where there is property damage, injuries, or fatalities, third-party liability coverage is what you will want to cover both damages and injuries. Third-party liability will cover you if there are any lawsuits initiated against you. The amount of coverage that you have depends on the amount that you take out with your policy. Places like Ontario require that you have at least $200 in liability coverage, but that is just the minimum. You can increase it so that you don’t have any lapses in coverage should the costs go higher if you are liable for an accident.
Direct compensation is similar to statutory accident coverage, but it covers someone other than you, if you are liable for an accident and there is damage to your vehicle. A direct compensation policy will also cover any losses that you have if there are things in your car that are destroyed. Even if the other driver didn’t have insurance to cover your property and damage, direct compensation will cover you even if you are at fault.
There are stipulations, however. Direct compensation is only applicable when the accident occurs in Ontario, there was another automobile that caused the car crash, and the other driver must be insured through FSCO.
Uninsured automobile insurance is one of those additions that you will want to add. If someone is liable for a car accident and is not carrying the mandatory vehicle insurance in Winnipeg coverage, then the uninsured automobile policy will cover your injuries, damages, and even wrongful death, if you were in an accident with someone who didn’t have insurance or if you are in a hit-and-run accident.
If you want to reduce the costs of your insurance, there are ways to minimize what you pay for the premium. To keep your costs low:
Keep your record clean
Insurance companies take your driving history into account. Be a cautious driver and keep your record clean to minimize the rates you pay. If you should get a ticket or be in an accident, that can raise what you pay monthly.
Since your auto insurance is calculated according to many factors, don’t just settle with one company and stop looking around and comparing rates. Every year you should research what insurance companies charge to ensure that you are always getting the best rate possible.
Increase your deductible
If you have a car that isn’t worth all that much, then bump up your deductible amount. The deductible is the amount that you have to pay up front if you are in an accident. As it comes right out of your pocket, sometimes increasing the rate that you are responsible for will pay off over the life of the policy.
The most important thing to do is to make sure that you have the mandatory minimum required insurance when you drive in Canada. Also, make sure that the minimum won’t leave you vulnerable. Keep your driving history clean and don’t assume that your rate is the best you can get. This can help you to save the most money on your auto insurance in Canada.