Is this your first time to purchase a car? Or are you thinking of switching to a new auto insurance provider? Auto insurances are mandatory in all provinces and territories of Canada. You can’t hit the road without one. However, you have to understand that there are various types of auto insurance available in the market today. Check out this guide to know more about the right one for you.
The Importance of an Auto Insurance
Accidents can happen at any given time. Aside from being a legal requirement, auto insurance provides financial security in case you encounter any vehicular accident. While auto insurance requirements vary across states, securing reliable SR22 insurance solutions is essential for drivers who need to meet specific financial responsibility laws. It pays for you or someone else’s car repairs in times of misfortunes. It also covers liability claims in the case of an unfortunate event wherein you’ve caused property damage or injuries to others.
Types of Auto Insurance
The required minimum liability coverage varies per state and city. There are several kinds of auto insurance being sold in the market, thus, doing your research is very important to ensure that you are equipped with the right auto insurance. Driving without auto insurance or the minimum level of coverage required in your state is illegal and will get you fined. Once you’ve already identified your state’s requirements in auto insurances, take a look at this list to help you choose the right package.
Third-party coverage.
This is the most basic auto insurance for car owners and is strictly required in Canada. This type of auto insurance covers medical bills for other people in case of accidents. It also covers damage to other people’s property.
Collision coverage.
Collision coverage doesn’t only just cover third-party liabilities. It also protects you from non-vehicular accidents. If you hit a guardrail or an embankment, a collision coverage auto insurance will cover the cost of the damage caused. In case you get involved in an accident with an uninsured motorist, this type of auto insurance comes in handy.
Comprehensive coverage.
This is the most expensive of all auto insurance. However, the cost of this auto insurance includes both third-party liabilities, collision-related accidents. This type of auto insurance may also cover you from theft and flood damages.
Specified perils.
This type of auto insurance protects you from damages caused by specified events like theft, fire, lightning, earthquakes, and other weather-related damages.
Knowing your state’s requirements in terms of auto insurances, your needs, and your budget are the most important factors in making a decision. It is also detrimental that you compare prices offered by different insurance companies so you can find the best deal for you. You also have to review your potential insurance providers’ package inclusions as well as their terms and conditions. This is an important step in assessing if their auto insurance package is sufficient for your needs and preferences.
How to Maximize Your Auto Insurance Investment
Getting auto insurance is not cheap. That’s why you have to make sure that you’re investing your hard-earned money on the right auto insurance package. As mentioned earlier, comparing the prices of different insurance providers is detrimental in identifying the best deal available. If you just simply stick with a random insurance provider without shopping around, you might miss out on getting the best rates out there. Some insurance companies offer discounts if you bundle with other types of insurance. If you’re a homeowner or if you’re interested in getting private health insurance, you might want to bundle that with auto insurance provided by the same company. Raising your deductible may also save you a lot of money in the long run.
How to Purchase an Auto Insurance
Most insurance companies have websites where you can just check their offers and purchase auto insurance right away. However, if you need to consult someone to answer your questions and help you select the perfect auto insurance for you, contact an auto insurance broker or agent. An auto insurance broker usually offers coverage from multiple companies. This is perfect if you want someone to help you find auto insurance on a much broader scale. An auto insurance agent, on the other hand, only offers insurance packages from just one insurance provider. If you already have a specific insurance provider in mind, consulting an auto insurance agent can help you assist the best package that would fit your needs.
Auto insurance is a valuable investment not only for yourself, but for other people too. To avoid any legal issues as well as to protect yourself from the financial cost of accidents, getting auto insurance is highly important. Whether it’s mandatory or not, it’s definitely something you need to look into.
