Types of Auto Insurance Coverage

Types of Auto Insurance Coverage2018-10-19T19:07:58+00:00

Purchasing car insurance coverage in Canada, just like any other country, can be confusing for most consumers. The fact that there are a number of options available to the consumer makes it hard on their side. The different car insurance rates provided by insurance companies do not help anyhow when it comes to helping consumers decide on a certain auto insurance coverage to take. It is very important to take some time to understand what each coverage offers and the related costs. By doing so, you not only get a peace of mind but also end up saving a lot of money.

These are some of the auto insurance covers you are likely to come across in Canada:

Liability Insurance

In Canada, the only mandatory insurance coverage you are likely to get for your vehicle is liability insurance. The coverage is specifically designed to protect others from damages that might be caused by a driver using your car. The liability insurance coverage takes care of both property damage and personal liabilities including physical injury and death. The coverage also protects drivers against any sort of financial losses that an individual might suffer in relation to their medical expenses. As an accident benefits portion of insurance coverage, the insured can actually claim protection even in the case of an at-fault accident.

Collision Coverage

This particular coverage offers protection in terms of financial compensation to a vehicle damaged as a result of collision or accident. In this case collision is defined as any accident involving another vehicle or a stationary object for that matter. Collision cover is usually expensive and has a tendency of depending on the vehicle or the driver.

Comprehensive Coverage 

This coverage seeks to protect drivers against any form of losses caused from other events that are not necessarily related to the driver’s action or the operation of the vehicle. Some of the risk factors covered under comprehensive insurance include: vandalism, and theft. Environmental perils such as floods, hails and windstorm are also taken care under this cover. The cover is reasonably priced as it offers one a peace of mind amidst all the unfortunate occurrences. Since the rates for comprehensive insurance tend to vary drastically depending on the insurer, it is always important to conduct a search on auto insurance quotes online in order to get a clear picture of what suites you best.

 

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