However, these do not cover damage to your own vehicle. For that, you need to purchase optional coverages. The following two types of coverage are recommended as notes. In Saskatchewan and Manitoba, they are both required.
Collision Insurance: Covers the costs associated with the repair or replacement of your vehicle if you are at fault in a collision with another car or object, such as a tree or pothole. Many drivers choose a collision due to varying Canadian weather, road conditions, traffic and other causes of unexpected accidents. Comprehensive Coverage: Covers repair or replacement of a vehicle damaged by something other than a collision. This could be a fire, theft, vandalism or a wind or hail storm – in fact factors often considered beyond your control.
How much car insurance do you need?
What are the best auto insurance coverages? The answer to this question will vary from person to person, as it ultimately depends on your ability or willingness to cover damages out of pocket should you have an accident.
For example, uninsured auto insurance typically provides up to $200,000 in property damage and personal injury coverage. However, in some provinces you can increase this amount. However, because a single accident can easily exceed the minimum coverage, many drivers choose to pay $1 million to $5 million in coverage. However, the car insurance amounts are not entirely up to you. Depending on where you live, you should have minimum coverage.
For example, in most Canadian provinces, you must have $200,000 in civil liability coverage. (In Quebec the minimum is $50,000 and in Nova Scotia $500,000). Remember, as a driver you are responsible for paying for any damage beyond what is included in your policy.
If you get more coverage, you have to pay a higher premium.
How much does car insurance cost in Canada?
The amount you pay in auto insurance premiums is based on many factors. Here’s an example of some of the most important:
The driver’s profile: New drivers, especially those under the age of 25, tend to pay higher premiums, as the data indicates that they are at high risk of accidents. Likewise, male drivers are statistically more likely to be involved in an accident resulting in death, which is factored into premiums. The vehicle: Insurance companies consider how expensive your car would be to repair if you were involved in an accident, and the likelihood of it being stolen. They use a system called Canadian Loss Experience Automobile Rating (CLEAR), which rates various aspects of a vehicle model so that they understand how risky it is to insure your vehicle. Where you live: Premiums vary widely by province, with the difference that some provinces offer public, government-run insurance programs and others operate on a private (or hybrid public-private) model. Even within one province, the costs can be higher if you live in a densely populated area, as opposed to a rural area where there are fewer accidents. Driving History: Insurance will be more expensive if you have a history of traffic fines or car accidents.
While an insurance broker can give you more accurate numbers for you and your specific driving situation, the General Insurance Statistical Agency looked at the average premiums across 10 counties. On average, Canadian drivers spend $1,142 a year on auto insurance. Drivers pay the most in British Columbia (where the average cost is $1,832 per year) and least in Quebec ($717 per year). Here’s what you should expect to pay, based on the province you live in:
ProvinceAverage Cost of Auto InsuranceAlberta$1,316British Columbia$1,832Manitoba$1,080New Brunswick$867Newfoundland and Labrador$1,168Nova Scotia$891Ontario$1,505Prince Edward Island$816Quebec $717Saskatchewan$1,235 Compare personalized quotes from Canada’s top auto insurers .Everything in less than 5 minutes with ratehub.ca. Let’s start. *You are leaving MoneySense. Just close the tab to return.
How to find the best car insurance in Canada
Given the complexity of auto insurance and the number of variables that determine what you pay in premiums — including where you live, the amount of coverage you need, and your driving record — there’s no easy answer to your question, “Which company has the best auto insurance in the world?” Canada?”
This post The Best Car Insurance in Canada: Your Complete Guide
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