What is Auto Insurance?

Just like insuring your life, your house and your belongings, it is essential to insure your car too, against theft and accidents. This is to help offset any unforeseen expenses in case of automobile accidents arising out of your own negligence and in the event of theft of the automobile. In Canada, normally any auto insurance consists of liability insurance and accident insurance. The first is applicable when anyone is hurt or any property is damaged due to your fault and you are liable for the repairs to the same. The latter is when the driver is injured due to a vehicular accident and has to meet medical expenses for treatment of the same. Both these, called third party insurance, are mandatory under Canada’s insurance laws. However insurance against theft and vandalism are optional under Canadian laws and so it is up-to the individual car owner to decide on what coverage he wants to buy.

One has to take the time and trouble to look into what various policy providers offer before deciding on the policy and its provider. In order to avoid unpleasant surprises, find out what your auto insurance covers and what it doesn’t. Work out your particular needs and find a tailor made policy for the most advantage. Do the math on deductibles and then decide whether you want to make a claim against your policy or pay for any small repairs from your own pocket and claim the no claim bonus at the time of renewal. It is better to have better insurance cover than what is mandated by law, in case of any accidents resulting in court cases and a verdict against you.

This will require you to meet the court fees and the damages awarded by the court and if you don’t have insurance cover, you may end up paying out of your own pocket. Different Canadian provinces have different rules and regulations governing auto insurance and the mandatory minimum coverage. For instance, in Manitoba and Saskatchewan it is mandatory to have physical coverage insurance too for theft and vandalism apart from the minimum coverage.

Take the time to talk to an specialist insurance broker. regarding special offers and deals. If you have more than one car, you can try and get group insurance policy. Or you can opt for life, home and automobile insurance policy from the same service provide with good discounts or loyalty rewards. Or try to pay for a bigger cover like life or auto insurance and get a smaller insurance free like medical insurance, etc. There are special rules that come into play in case of rental vehicles and they are strictly enforced. So check out the applicable rules in your state before setting out in a rented vehicle. So set out the necessary data, do a thorough study, weigh your pros and cons and then decide on the best suited insurance policy for you car and other priceless possessions. As they say, insure and be secure!