Auto Insurance in Canada: Everything You Need to Know
A comprehensive guide to auto insurance coverage in Canada.
What is Auto Insurance?
Auto insurance is mandatory in all Canadian provinces and territories. It provides financial protection against physical damage and bodily injury resulting from traffic collisions, as well as liability that could arise from incidents in a vehicle. Every driver must carry a minimum level of auto insurance to legally operate a vehicle on Canadian roads.
Types of Auto Insurance Coverage
Canadian auto insurance typically includes several types of coverage: Third-Party Liability (mandatory, covers damages to others), Accident Benefits (covers medical and rehabilitation costs), Uninsured Motorist Coverage (protection if hit by an uninsured driver), Collision Coverage (covers damage to your vehicle from a collision), and Comprehensive Coverage (covers non-collision damage like theft, vandalism, or weather). The minimum required coverage varies by province.
Factors That Affect Your Premium
Several factors influence your auto insurance premium: your driving record, age and experience, the type of vehicle you drive, where you live, your annual mileage, your claims history, and available discounts. Young and new drivers typically pay higher premiums. Maintaining a clean driving record is the most effective way to keep rates low.
How to Save on Auto Insurance
You can reduce your auto insurance costs by: bundling policies (home and auto), increasing your deductible, asking about available discounts (good driver, multi-vehicle, winter tires), comparing quotes from multiple brokers, maintaining a clean driving record, and considering usage-based insurance programs. Working with an independent broker gives you access to quotes from multiple insurance companies.