Best Auto Insurance Coverage Options in Canada: Auto Insurance is a contract between an insurance company and the owner of a vehicle that provides protection against various risks that can result in financial losses. It provides financial assistance to the beneficiary in the event of a loss or damage caused by an accident, theft, man-made calamity, fire, or natural disaster as specified in the policy plan.
- Protection from Third-Party Liabilities:
This includes bodily injuries, temporary/permanent disability, death, and property damage. Third-party property damage compensation is limited. There is no compensation limit in the event of third-party bodily injuries, disability, or death.
- Protection Against Own-Damage:
Keeps you financially secure against your vehicle’s own damage expenses. These can be damages caused by road accidents, natural disasters, man-made disasters, fire, explosions, vandalism, and so on.
- Coverage Against Theft:
It provides coverage in case of theft of your vehicle. The company provides you with your vehicle’s Insured Declared Value (IDV) which corresponds to the current market price of your vehicle.
- Personal Accident Cover:
You can also get a personal accident cover with this. It provides coverage in the event of the policyholder’s death, bodily injury, or disability in the event of a car accident.
If you use your car to provide transportation to others via a ride-sharing service such as uber, your personal auto insurance will not cover you. Nonetheless, some auto insurers are now providing additional insurance benefits (at an additional cost). These extensions provide coverage to vehicle owners who provide ride-sharing services.
- Helps against Legal Liability:
Covers the expenses incurred to fight against all the legal charges that are held against you in case of road accidents. Sometimes it even gives you legal assistance.
These can be tailored as per your budget and requirements.
What is Not Covered by Vehicle Insurance?
Auto Insurance Coverage doesn’t include Wear and tear, depreciation, or any consequential loss. Mechanical/electrical breakdown. Damage caused by a driver who does not have a valid license. Damage caused by a driver under the influence of alcohol or drugs. Other exclusions as specified in the policy’s terms and conditions.
What Happens to the amount paid if I don’t claim the Auto Insurance Coverage?
If a person is perfectly well throughout his/her lifetime and doesn’t suffer an accident or calamity then the premium amount paid cannot be recovered back. For recoverable policies, you can refer to life insurance options. Auto insurance can only be claimed to accommodate the coverage entailed else the amount is lost.
But with the degenerating social environmental conditions, it’s highly unlikely to not come in harm’s way and it’s more advisable to play it safe.
Though the requirement of Auto Insurance Coverage sought varies from state to state but nearly every state requires the car owner to carry:
- Bodily injury liability – which covers costs associated with injuries or death that you or another driver causes while driving your car.
- Property damage liability – which compensates others for damage that you or another driver operating your car causes to another vehicle or other property. It may include a fence, building, or utility pole.
- Medical payments or personal injury protection (PIP)– which compensates you for medical expenses incurred as a result of injuries to you or your passengers. It will also cover lost wages and other associated costs.
The Auto insurance policy expires after a given time frame. Upon notification, by the company, it can be easily renewed by paying the due premium.
Is Vehicle Insurance mandatory or NOT?
Although it may not be mandatory, if you are an automobile driver, as the saying goes “Better safe than sorry”.
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