Top Car Insurance 2021: Pay As You Go, Instant Online Quotes, & How to Save

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All You Need to Know about Auto insurance in Canada.

You have spent a considerable amount of time searching for a car that suits your taste. You have gotten your driver’s license, as well as other necessary vehicle documents; the only thing between you and the steering wheel is the door. You start the ignition but remember you cannot take it for a spin without having a valid auto insurance policy.

Vehicle owners in Canada who need help in selecting a suitable insurance policy for their automobiles would find this piece very helpful. You get to know everything about car insurance in the country: the types of auto insurance available and major insurance companies and factors that affect the cost of the premium. Take note of other important information you need to know before choosing an insurance policy.

Pay-as-you-go Vs. Traditional Insurance

Someone once said, /“We take risks every day.”/ Being a vehicle owner doesn’t exclude you from exposure to risks; by paying a certain amount of money called a premium, you can protect yourself and your vehicle from incidents that would require you to pay from your pocket. Vehicle insurance is an important aspect of our finances; You would find out the benefits of owning an insurance policy if you ever get involved in a collision. Your insurance policy would fall into any of these two categories:

Traditional or Standard Insurance: This is currently the most common insurance policy. It is the basic insurance cover every vehicle owner can secure. This policy is ideal for long-distance drivers, taxi drivers, and other regular road users who spent a great deal of their time in transit.
Pay-as-you-go insurance: This policy is ideal for car owners who don’t spend too much time on the road. Rather than pay a fixed amount of money, your insurance premium is based on how far you drive per month. The premium cost is the sum of the base rate and the product of distance travelled and variable rate. Pay-as-you-go insurance is ideal for people who are exposed to many risks. Remote workers, older motorists who seldom drive, workers who travel via public transportation, among others. You get the same coverage as the traditional policy but pay less so far you drive less.

If you drive long distances regularly, a standard insurance policy should be the first thing on your mind. Pay-as-you-go drivers can save more money driving shorter distances.

Factors that Affect Your Car Insurance Rate

Vehicle: Insurers consider all the details about your vehicle. The brand, version, and year of production are the factors that affect the cost of damage repair.
Geographical location: Insurance premiums are quite expensive across Canadian states except for Quebec.
Driving record and history: Insurers consider the average distance you cover with your vehicle every year and the number of speeding tickets and accidents part of your driving record.
Additional Insurance Coverage: If you think it’s a bit much purchasing additional insurance policies, you would realize the benefits in the event of an accident.
Gender: Men are usually charged more because they tend to drive riskier than women.
Age: The older you get, the more expensive your insurance premium becomes.

Your marital status is another factor that may determine the cost of your insurance premium.

Driving isn’t a hundred percent safe. Even if you take all necessary safety precautions, there are a lot of factors that are beyond your control. As long as you are behind the steering wheel, you are in control of your life, your passengers and their properties, other road users – pedestrians and motorists. You cannot drive without being properly insured else you could be penalized. As long as you own a vehicle in Canada, you are expected to have insurance coverage. The penalty for driving an uninsured vehicle differs with location; your vehicle might be seized, or you would be asked to pay a hefty fine, ranging from $10,000 to $50,000.

A vehicle insurance policy is compulsory for all vehicle owners in Canada to cover:

Liability: This covers property damage and medical expenses of accident victims. Without securing collision and theft protection, liability coverage would foot basic medical bills and automobile repairs.
Collision: This insurance policy protects the other person by paying their medical expenses and motor repairs. Although it is more expensive than liability coverage, it covers more insurance policies. It would also protect you from uninsured motorists.
Comprehensive: This is the most common type of insurance coverage amongst vehicle owners in Canada. Comprehensive coverages are flexible; you can choose any insurance option you desire. Your comprehensive insurance policy may cover medical expenses, cost of collision, theft, and natural disasters. Get a comprehensive cover quote today and channel your money into protection from the risks you take.

How Does Auto Insurance Work?

To reduce the effect of financial loss that may arise from accidents and theft, vehicle owners pay a monthly premium to an insurance company. Should an accident occur, the insurance company gathers the premium and compensates victims for any loss covered by the contract. Always assess the details of your insurance contract before signing. This is because your insurer will only compensate you for financial losses within the policy.

Your Location and Your Insurance Premium

In Canada, your location and how much you drive are major determinants of your premium cost. Insurance regulations differ from one region to another. For instance, Ontario has no public auto insurance companies in the province. All auto insurance policies are covered by private insurance firms. Every policy must consist of:

Third-party Liability Cover: Compensation for injury or harm done to others or their property during an accident. The lower limit for covering liability in most regions is $200,000. In other places like Quebec, drivers also pay to insure their vehicle when getting their driver’s license. Insurance premiums in the region can range from $50,000 to over $2,000,000. Without extra coverage, you would have to pay from your pocket.
Statutory Accident Benefits Cover: You get compensation for an injury sustained in accidents you cause. This shouldn’t be confused with the normal health insurance plan.
Property Damage Cover: If someone else was the cause of the accident, your vehicle and all the properties inside it are insured. Motorists in Quebec, Ontario, Nova Scotia, and New Brunswick must have this insurance policy at all times.
Uninsured Auto Cover: Would you believe that some motorists move around without insurance? This policy protects you and your family from such gullible drivers in case of an accident. The policy would foot your medical bills and vehicular damage. This isn’t the case in Alberta where owning an auto insurance policy isn’t compulsory, so you are exposed to more risk.

If you need a reputable auto insurance company in Canada, you should consider the following organizations:

TD Insurance: TD Insurance is committed to helping you save money while giving you the best insurance policy for your vehicles. Contact TD Insurance today to get an insurance quote.
Aviva Canada: Aviva Canada is among the top insurance groups in the North American country. The firm has provided insurance to over 2.4 million customers.
State Farm Mutual: State Farm Mutual has a wide range of insurance policies. Teenage drivers, rental, and sports cars are not exempted from the insurance portfolio.
Intact Financial Corporation: This a subsidiary of Intact Group whose headquarter is located in Toronto. Intact Financial Corporation is the largest property and casualty insurance in Canada, with a total premium of over 11 billion Canadian Dollars annually.

CONCLUSION

There are several insurance firms. You can check any of the aforementioned and get a free quote to compare their coverage options and premium rates. You may also secure an auto insurance policy through an insurance broker. All the broker needs to do is analyze the insurance market and get an insurer that suits your policies at the best price.