Canada Car Insurance Companies
In Canada – where there are almost 40 million registered vehicles, according to the latest figures from Statistics Canada (StatCan) – drivers are legally bound to take out auto coverage. But with motorists swamped with options from various providers, finding the right policies that can fit their varying needs becomes a tall order.
Choosing cheaper coverage can often be tempting. However, drivers risk losing more, especially if the protection such policies offer is insufficient. To get the most out of car insurance, Canadian motorists need to understand the choices available to them and the level of coverage the different types of policies provide.
How does car insurance work in Canada?
To operate a vehicle, drivers in the country must carry auto insurance. It is required by the law in all provinces and territories. Getting caught driving without one can result in hefty fines and may affect future eligibility for obtaining coverage.
But each province and territory implement different car insurance systems, which result in varying levels of protection and rates.
For those living in British Columbia and Manitoba, auto insurance is regulated by government-owned organizations, the Insurance Corporation of British Columbia (ICBC) and Manitoba Public Insurance. Car insurance in Saskatchewan is also run by a Crown corporation, Saskatchewan Government Insurance (SGI), but motorists can purchase additional coverage through private insurers.
What does car insurance cover in Canada?
Provinces and territories also have their own rules and regulations when it comes to mandatory coverage, but there are similarities. These are:
- Third-party liability: This covers the cost of lawsuits if a motorist is responsible for an accident that causes bodily injury, death, or property damage. The minimum amount varies depending on the location but is typically pegged at $200,000.
- Uninsured automobile/motorist: This coverage kicks in if the policyholder or their passenger is injured or killed by an uninsured driver or in a hit-and-run incident. It also covers damages to the vehicle.
- Accident benefits: This pays out for medical treatments and income replacement if the policyholder is injured in an accident, regardless of who is at fault. It also covers funeral expenses should the driver succumb to their injuries.
- Direct compensation property damage: Applicable in Ontario, Québec, Nova Scotia, New Brunswick, and Prince Edward Island, this policy covers damages to the vehicle and its contents resulting from an accident with another insured vehicle as long as the policyholder is not at fault.
