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How Important Is A Car Insurance?

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When it comes to car insurances, people should know that they are legally obliged to do it. There are many types of car insurance, and they are different based on the price, things that are covered and also the company you will choose.

This is why, it pays to know which are your claims bonus, how it works and also how to get the best levels from the policy you choose. The car loan protection insurance policy is usually covering the debt on your vehicle when you have an event, an accident, or a minor problem with your vehicle.

Also, car insurance will cover all the costs in case you become disabled, as a result of a possible injury, pass away, maybe a contract a serious illness. In the case of these terrible problems, the loved ones should find themselves able to continue to pay any outstanding debts.

Do you really need car insurance?

Yes, legally, it is mandatory to have car insurance, at least a basic one. The first basic insurance is called the third party insurance, even if you don’t drive the car at all. The only exception from this rule is if you register the car as off the road officially.

What does the car protection insurance cover?

Usually, the types of protection plans can be different, depending on the company you choose and many other factors. But, generally speaking, this type of protection covers a variety of things you should keep in mind:

  • Bodily injury liability: this one applies to some injuries they might happen to you, or designed to the driver or the policyholder. You and the family member listed on the policy are covering another person who is driving your car with your permission.
  • Medical payments also called personal injury protection: this one is paying the treatment and injuries to the driver and all the passengers that have been in the policyholder’s car.
  • Property damage liability: this type of insurance will pay for damage you might have caused to someone else’s property. Usually, this refers to damaging someone else’s car, but also the damage to lamp posts, fences, telephone poles, buildings or other structures your car might have hit.
  • Collision: the collision coverage will pay for the damage to your car that results from a possible collision with another car or an object on the road. The collision coverage will help you even if it is your fault for the accident. The collision will reimburse for all the costs of repairing the car, without the deductible costs.

Types of car insurances in Canada                              

In all areas of Canada, drivers are asked to have at least a minimum amount of insurance. And it doesn’t matter the city of part of the country you are from. If a person is found driving a vehicle without proper insurance, then they might suffer license suspension, along with vehicle impounding.

Liability Coverage

When talking about the minimum amount of insurance to cover all the liability and the medical payments to any accident victims, this is the mandatory car insurance. This requires a minimum payment. This differs from each Province, but basically, it will cover the medical costs of injury other than the car repairs in case of an accident.

Collision Insurance

Going beyond the mandatory coverage, you will get the collision coverage. This one will cover not only the costs for a second party if it’s about liability issues. But this insurance will also pay for the vehicle repairs and all the medical costs that are necessary to the owner of the policy. This insurance is more expensive than the minimum one but has many more coverage benefits in case you have an accident.

Comprehensive Coverage

Another common type of Canadian insurance policy for cars is a comprehensive one. This one comes with many forms, and also have lots of options from all three types we have discussed already.

Comprehensive car insurance is going to entail not only simple medical but also collision costs if you are involved in an accident. Also, the comprehensive policy is one of the most useful in case you are looking to reduce the risk-based on every individual needs and assessment.

These liability and collision policies will vary in terms of amounts of coverage and mostly on premium costs. On the other hand, the comprehensive coverage will allow a lot more robust buffet and also a premium coverage.

About the Extended Service Protection

In case you want more, and your service protection to cover much more than a regular one, you should ask for an extended car warranty in Canada. This one applies to any make, year or model of car and it is transferable and renewable. This protection offers roadside assistance, towing and also breakdown away from home.

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