Vehicle insurance (also known as auto insurance, car insurance, or motor insurance) is insurance purchased for cars, trucks, and other vehicles. Its primary use is to provide protection against losses incurred as a result of traffic accidents and against liability that could be incurred in an accident.
The smart Canadian car owner knows that having an auto insurance is a wise move to protect their vehicle investment. By providing property, liability and even medical coverage for the owner, auto insurance in Canada has provided security and peace of mind for the nation's over 12,650,000 registered car owners.
Auto insurance in Canada is a way of sharing risks associated with car ownership. The auto insurance policy is a guarantee that any possible financial losses that is covered by the policy can be claimed by the plan holder. Typical coverage in a Canadian auto insurance policy include car accident, theft, vandalism and other acts that causes damage or liability to the car or injury to the driver, passenger or other people involved.
The typical auto insurance coverages in Canada include Accident Benefits coverage (which is compulsory except in Newfoundland and Labrador) that provides medical, rehabilitation, loss of income or death claims due to accident; Collision coverage which protects the car from accident damages; and Comprehensive coverage which extends protection against loss or damage as a result of theft, vandalism or accident like debris falling on your vehicle. These three auto insurance coverages apply some form of deductibles, or areas where coverage is not extended, like wear and tear, corrosion, mechanical problems or weather-related damages.
Auto insurance in Canada is also valid anywhere in the United States. While there is a minimum coverage compulsory requirement, the purchase of newer car models now require getting a comprehensive or collision protection coverage.
It's hard to get anywhere in life without a vehicle, and getting a vehicle warrants the need to buy auto insurance. And, sadly for consumers, getting both of these things is a complicated process unless consumers actually know what they are doing. But for young adults and the less experienced, there are some guidelines to follow.
It is generally accepted that if a consumer buys a new vehicle, they will need to pay full coverage for it in terms of insurance. This is usually the case with used cars too, but not always since some used cars are fairly cheap because of their age. This helps lenders cover their risks since the insurance agency agrees to pay for damages in the even of a wreck, so consumers should logically be able to pay the total off.
The full coverage auto insurance can be bypassed by obtaining a personal loan in some cases. If the consumer is buying a cheap car on credit, they can usually get a personal loan and bypass the need for full coverage altogether. This should only be done for older cars, however, in which case the consumer can pay for repairs or a new car entirely should it break down.
If one is going to be buying a new car from a car dealer, it should be said that most in-house financing plans are inflated. Those who have poor credit or no credit at all are going to be largely disadvantaged at this point, in which case they'll likely have to go to an actual bank themselves for better rates. It isn't uncommon to see rates as high as 25% for a lack of credit, but this can be remedied by getting multiple quotes.
Before finalizing the payment for a new vehicle, consumers should always check with their insurance agent first to see what they are going to be paying each month. This is especially true for the younger types, who are typically going to pay a couple of hundred dollars each month or more for the same car an older adult would pay a fraction of that each month in premiums.
In the end, the consumer is going to realize that you can't get a car without insurance, and getting insurance or a new car is going to be equally expensive. As such, one should check their budget carefully and, if needed, they should consider other options for their situation. Buying used or less chauvinistic cars will do wonders for premiums each month.
Closing Comments
Auto insurance and autos can give anyone a headache- just try not to fall victim to the tricks of both industries all at once. Remain confident and firm in what one wants- not what the salesman or auto insurance agency wants. Doing so will make sure consumers get what they need and nothing else.
Both Ajcones & Chris Channing are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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