Auto Insurance Compare Car Insurance Quotes – Car insurance in Canada is a requirement for anyone who wishes to drive a car. In each province, car insurance policy requirements vary depending on whether it’s a public or private insurance system.
British Columbia, Saskatchewan, and Manitoba are public insurance systems where you buy car insurance from the government.
Alberta, Ontario, and Atlantic Canada use private insurance companies vying for your business which is why comparing car insurance quotes online is an effective strategy for lower rates. Quebec is a hybrid system (and the cheapest car insurance province) where you buy injury coverage from the government and property damage from your insurer.
Every province mandates coverage requirements, some more than others. You can also further customize your policy to your personal needs.
Required car insurance coverage
* Third-party liability insurance protects yourself financially if you injure someone or damage their car or property. The minimum is $200,000, but most people default to $1 million, and you can upgrade to $2 million.
* Accident benefits protection provides you and anyone injured with coverage for any medical and rehabilitation costs resulting from an accident. It also pays for loss of income if you can’t work. You can upgrade this coverage, too.
* Direct compensation property damage (DCPD) is available in the private insurance provinces. It means you only ever deal with your insurance company for damages.
* Uninsured auto is for when you’re in an accident where the other driver doesn’t have insurance, your insurance company will still cover you.
The majority of Canadians customize their policy beyond the provincial mandatory minimum car insurance coverage requirements.
Car insurance policy add-ons
* Collision insurance is for when you’re at fault in an accident and pays to repair or replace your vehicle’s damages.
* Comprehensive insurance is insurance against damage while your car is parked. Think of vandalism, burglary, flood, fire, or a tree falling on top of it.
* Specific Perils is when you want insurance for a specific risk (i.e. peril) such as lightning or flood, but don’t want to pay for all the risks under comprehensive.
* All perils combines collision and comprehensive but also gives you coverage against theft by someone you know like your mechanic or a family member.
Car insurance endorsements
Each province has endorsements available through the government and activated by your insurance provider. In Ontario, they are Ontario Policy Change Forms (OPCF), in Quebec they are Quebec Endorsement Forms, and in Alberta and Atlantic Canada they are Standard endorsement forms (SEF). Here are some popular car insurance endorsements.
* Suspension of coverage (SEF/QEF/OPCF16): Don’t need to drive for a bit? Looking to cut back on expenses. You can put your car insurance on hold with this endorsement.
* Loss of use coverage (SEF/QEF/OPCF20): After any insurance claim that puts your car in the repair shop, this endorsement pays for a rental car so you can still drive around.
* Coverage for damage to non-owned automobile(s) (SEF/QEF/OPCF27): Many people consider this rental car insurance because it extends your existing insurance to a non-owned car, like a rental vehicle or a friends’ car.
* Accident forgiveness or Accident Protection (SEF/QEF/OPCF39): Protects your driving record or abstract from your first at-fault accident that would otherwise increase your rates.
* Remove depreciation deduction (SEF/QEF/OPCF43): A car depreciates in value the moment you drive it off the lot. If your car is a total write-off, your insurance company will pay the actual cash value which will be less than buying it brand new. This endorsement covers that gap.
Before finalizing your policy, make sure to review all coverage options available to you within your province. After comparing quotes online, we’ll connect you with a car insurance broker who can finalize the details of your policy and go over any questions you may have. 15 Tips And Ideas For Cutting Car Insurance Costs