It’s illegal to drive without insurance in all Canadian provinces and territories. That doesn’t make it easy to choose the right cover, however. Some of the local governments will provide you with basic cover, but finding a private insurer is up to you.
We’ve compiled a brief overview of the different types of insurance you can get. We also look at how they can protect you.
Liability cover applies if there’s an accident, and you’re the party that’s held liable. A liability policy covers any injuries or deaths and damages the other party’s car. It doesn’t cover your injuries or vehicle damage, however.
Accident benefits, or bodily injury insurance, cover your medical bills or funeral costs. More importantly, it covers you for loss of income due to disability. This policy can be a life-saver if an accident takes away your ability to work or earn a salary.
Direct Compensation Property Damage
This policy comes into play if you’re in an accident caused by another driver. Direct compensation will cover any damage to your car and property inside it. It doesn’t include items stolen out of your vehicle, however. Instead, your home policy ordinarily covers this type of property theft.
Optional Additional Coverage Options
Collision or Upset
If you hit a car or object, collision insurance covers the cost of repair or replacement of your vehicle. The coverage usually includes the actual value of your vehicle, minus your deductible.
A Comprehensive policy usually covers you for almost all damage outside of accidents. Depending on your policy terms, it might cover a few things. For example, coverage can include theft, fire, vandalism, lightning, falling objects, or explosions. If you want to protect against almost every eventuality, this would be a good option for you.
Specified Perils Cover
Specified perils cover is like a watered-down version of comprehensive cover. With this policy, you’re only covered for selected ‘perils’. These include theft, storms or earthquakes, explosions, riots, or even falling aircraft parts. You can pick the ones to include in your policy.
All Perils Cover
All Perils cover is a combination of collision and comprehensive policies. It’s one of your more expensive options, but it will keep you protected in most cases.
Province and Territory Specific Coverage
Provinces and territories have different coverage options available. You might get from the government insurer, a private insurer, or both.
Newfoundland and Labrador
Prince Edward Island
Hybrid Insurance with Mandatory Basic Insurance from the Government:
In Quebec, it’s mandatory to get government insurance. The plan will cover any injuries resulting from operating a vehicle. However, you can also get additional private insurance for damage to your car.
Get More Information About Insurance in Your Territory
Now you should have a better idea of what kind of cover you can get. If you’re still unsure about which car insurance you can or should get, you can get more information easily online. Visit the Bureau of Canada’s website, and go to the ‘Car Insurance Where You Live’ section. You’ll find all the information you need about vehicle coverage.