How To Understand The Different Types Of Personal Vehicle Insurance
In Canada if you are going to travel back and forth via your personal vehicle, you are required by law to acquire auto insurance. If you are a first time buyer, the market can be rather tricky, hard to understand, and expensive. There are a lot of different policies available and you are probably wondering which ones you need and how they can protect you. If you are going to choose the right coverage for your needs, it will be imperative that you understand the different types and how they can protect you.
Frequently asked questions regarding Auto Insurance
- Can I get Auto insurance if I am a high risk driver?
- I have a DUI on my Car Insurance record, what can I do?
Mandatory Liability Insurance
Within Alberta and most other Canadian provinces, automobile owners will need to obtain a sufficient amount of third-party liability insurance. This specific type of coverage is designed to protect victims of automobile accidents. If you are held responsible for an accident, which causes injury or death to another individual, you’re going to be forced to pay for the medical or funeral costs. If you damage the individual’s vehicle or their property and the crash is deemed your fault, you will be responsible for covering the damages. This is what liability insurance will cover.
Under Alberta laws, residents are required to obtain at least $200,000 worth of liability insurance. However, the cost of claims has increased substantially over the years, so obtaining additional coverage is a good idea.
What Is Collision Insurance?
Collision insurance can be helpful, hurtful, and in some cases it might even be required. If you are in an accident and the fault is determined to be yours, collision insurance will pay for the repairs of your vehicle. If your vehicle is totaled during the accident, collision insurance will pay for the value of your vehicle. In most cases insurance adjusters will consider a vehicle totaled, if the cost of repairs exceeds the total value of the vehicle.
Collision insurance can be rather expensive so, if your vehicle is older and not worth much, this type of coverage might not be a good ideal. However, if your vehicle is newer, this insurance can prove helpful. If you have lienholder on your vehicle, you are required by law to carry this kind of policy in order to operate the vehicle legally.
It is vital to remember that some portions of your vehicle will not be covered by an ordinary insurance policy. This includes the glass in your vehicle. In some cases, glass will be removed from the consumer’s main policy. This is one way consumers can save money, but it can also leave you with greater risks. Some Canadian insurance providers will give you the option of obtaining glass coverage as an add-on. It may increase the costs to some degree, but it’ll prove to be well worth it, if your windshield is busted during an accident.
Speak With A Broker
Before enrolling in a new policy, it is a good idea to speak with a broker. Let them know about your concerns, your budget, and the value of your vehicle. This will give you a better chance of obtaining the policy that best suits your needs, while also allowing you to maximize your savings.