Car Insurance Canada

2008 Subaru Legacy Know Car Insurance Canada requirements and options to decide what policy terms are right for you. Save money, yes, but get what you need so you know you are covered.

Most governments require all drivers to carry some type of insurance to cover the losses that they might cause someone else in the event of an accident.

Canada is no exception to this rule. Every province and territory in Canada has particular laws regarding auto insurance. To find out the specific regulations in your area check with the Insurance Bureau of Canada.

There are other types of optional coverage that you can choose to add to cover your own losses, as well.

Basic Car Insurance Canada Requirements

There are two different basic types of auto insurance coverage required by law in Canada. Be sure that you carry the basic minimum, at the very least.

Liability Insurance - Liability insurance is the coverage that includes property damage, injury, and death compensation for any accident that is your fault. Liability insurance only covers other people. This doesn't include any loss you incur personally.
Accident Benefits/Bodily Injury (AB/BI) - Accident Benefits and Bodily Injury coverage is insurance that covers your own medical expenses and loss of income. This still does not cover your own vehicle.

Both of those types of Canada car insurance are required and are the bare minimum you must have to drive legally in the country.

Optional Car Insurance Canada Coverage

If you have a nice car, you should definitely consider spending the extra money to get some of the optional coverage that is available.

Collision Coverage - Like the name suggests, collision coverage is auto insurance that covers damage to your vehicle as the result of some type of collision.
Comprehensive Coverage - Comprehensive insurance coverage is just in case you get damage to your vehicle from something other than a car accident. You know, like when the tree falls on your car, someone "keys" your vehicle in the car park, or swipes your brand new stereo system.

These options will increase your premium rates, but you need to consider if it is worth it. The rates will be determined by several different factors.

Type of Vehicle - The make and model of your car is one of the biggest factors in determining the amount you will pay for your insurance. Obviously, newer cars and higher end automobiles are going to cost more to insure because they cost more to replace.
Driving History - How long you have been driving and your driving record will also be considered. When you keep a clean record and driving history, you are offered better rates.
Deductibles - Your deductible is the amount you will pay first when a claim is made before the insurance coverage kicks in. For instance, if your claim is for $900 and you have a $400 deductible, you will only receive $500. The higher the deductible you are willing and able to pay, the lower your insurance rates will be.
Other factors - Some of the other considerations that insurance companies take into account are your age, marital status, number of miles you drive annually, and where you live.

If you find that you have too many black marks on your record and are having difficulty finding auto insurance, you will have to resort to getting your insurance coverage through the Facility Association.

The FA is a compilation of all the Canadian car insurance companies that pull together to cover those people who are considered high risk. Unfortunately, you are really going to have to pay a lot for your insurance.

Don't lose hope. If you are stuck with coverage from the Facility Association, do your best to keep yourself from getting any traffic violations or making any claims and you will be able to get out of the system and get back to standard car insurance Canada coverage. Your rates will go back down - hang in there!

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