Canadian auto insurance – types of coverage available

Canadian auto insurance – types of coverage available

As an average consumer, buying car insurance is not at all easy, considering you might not exactly know which policies are the most advantageous for your situation. The options put at your disposal are virtually endless, varying in terms of benefits as well as price. To make the process of shopping for car insurance a bit easier, understanding the coverage possibilities will be necessary. These are the details you should be aware of on the subject:

Collision policy

Just as the name itself suggests, a collision policy covers any type of damage that a vehicle undergoes during a crash. The accident or collision can be one with another car or with an inanimate object. Any expense that you will be subjected to by the car repair process due to the road crash you have been involved in will be compensated or paid directly by the insurance company as long as you have opted for a collision clause. Incorporating this policy in your coverage is optional in Canada, but although the price demanded can be a bit higher (depending on vehicle type, driving experience and so on), for increased protection against financial losses, you should consider adding this component.

Liability policy

The liability clause of a car insurance is the only one that is mandatory. As a car owner/driver, you are legally obligated to purchase an insurance that comes with liability coverage. What a labiality clause implies is protection for other individuals (drivers, passengers, pedestrians, and cyclists) affected by the car accident that you have been responsible of, while driving your vehicle.  In Canada, any standard liability policy provides protection for you as the driver, against potential financial losses triggered by a road incident, whether these are of medical nature, or income loss (personal injuries that might prevent you from working). The insurance part that offers support in the eventuality of dealing with personal injury expenses is called “accident benefits”, and you have the opportunity to make a claim from the insurance company even if you were the at-fault party.

Comprehensive coverage

Being probably the most extensive coverage policy, you can resort to, but at the same time the most advantageous as well, comprehensive coverage includes protection from losses that might not be directly linked to the actual operation of the car. From vehicle theft to vandalism, you will be compensated financially for any incident that falls outside your control. A policy that incorporates comprehensive coverage can include damage compensation against natural disasters or environmental issues as well (aggressive storms, floods etc.).

Each type of policy comes with its own set of advantages, as well as drawbacks, and this is why it’s essential for you to understand your coverage options thoroughly. The details mentioned above can clarify the three general Canadian auto insurance coverages a viable, and what they cover with exactitude. However, each insurance company can add further benefits to their sold policies, so it’s imperative for you to research their offers and deals carefully, and to compare quotas in advance.