However, before buying additional insurance, do your homework and comparison shop. In counties where insurance is handled privately, you may be able to get better coverage for your money because there is more competition between providers, the Pruis said.
“There is a wide variety of options and recommendations available, and some of them have different limits,” says de Pruis. “Talk to an insurance representative about your specific situation and they will be able to give you the best advice.” An informed insurance professional can help you choose insurance coverage that is specific to your needs, your budget, and your county insurance regulations.
What happens if you do not have an accident benefit?
Since accident benefits are part of every standard auto insurance policy in the country (outside of Newfoundland and Labrador), you cannot opt out of this type of coverage. You also can’t decide to drive without car insurance — without breaking the law.
Whether you’re a rogue driver ignoring buying a policy or you’ve missed payments causing insurance to lapse, fines for being caught without coverage range from $400 to $50,000 depending on the county you live in. impounded your car and lost your driver’s license. Then when it comes time to take out insurance again, you will be considered a high risk driver and will have to pay more expensive premiums than you would have otherwise.
If you are not insured and have an accident, you must pay for all personal injuries out of your own pocket and, if you are at fault, also for the physical recovery of the other person. While the insured’s no-fault policy may offer them accident compensation directly, their insurance company will come after you – the uninsured driver – to reimburse them for those bills. You will likely have to pay a lawyer and legal fees throughout this process.
In short, the consequences of driving without the necessary car insurance far outweigh the cost of your insurance premiums.
How much does accident insurance cost?
The cost of accident insurance coverage is largely based on your provider. And those costs are included as part of your total premium, so it’s not always easy to know specifically how much you’re paying for that part of your policy.
One insurance rule still applies: buying notes will increase the cost of your premiums. For example, if you choose to increase your income replacement coverage from $400 to $1,000 per week, you may pay an additional $80 per year. You can decide for yourself whether the extra coverage is worth it.
This post You are insured for accident insurance, but for what exactly?
was original published at “https://www.moneysense.ca/spend/insurance/auto-insurance/accident-benefits/”