Auto Insurance In Canada – Top 7 Things You Should Know

In this article, let’s take a look at the Auto Insurance Scenario in Canada. Let’s get started. 

Whether you lease, finance, or own your car in Canada, it is mandatory to have auto insurance. However, in order to be eligible for car insurance, certain conditions and restrictions apply.

To begin with, you (and all drivers you wish to include in the policy) must have a valid driver’s license and be a resident of Canada. Next, insurance companies will look at your prior driving record to determine eligibility and rates.

However, rates will vary depending on whether you are looking for a new insurance policy altogether or if you wish to renew an existing one. Other eligibility restrictions may arise from past convictions. This too, will vary depending on when your last conviction occurred and the nature of the conviction.

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Behind the wheels, travelling is very fun. But you have the responsibility of yourself and the passengers seating behind you. Canada provides some of the best and cost-effective auto insurance to its citizens. So don’t miss this chance. One needs to understand the points of Canadian auto insurance in their country.

Canadians spend a lot of time in their cars. A new Belairdirect survey by Leger found that while 71% of vehicle owners drive at least five days a week, 32% are actually driving less than 10,000 kilometres a year.

In Canada there are some rules and regulations related to auto insurance:

1. What Does The Canadian Auto Insurance Cover?

Auto Insurance of auto vehicles in Canada covers many things. Canadian auto insurance covers the vehicle, passengers, driver, pedestrian and property across it.

2. Provincial Auto Insurance

According to the laws of Canadian auto insurance the vehicle you are using should be insured. Some parts are not necessary to be insured while others should be insured before using the vehicle on the road.

3. Purchase Of Auto Insurance

This is not an easy procedure and requires proper documentation and checking of your vehicle. The model and the year are also checked in this insurance policy. As a result, it’s almost a two weeks long procedure.

4. Calculating The Auto insurance Premium Amount

Following points are considered or checked by insurance companies of Canada:

  • The model of your car

  • Where you live

  • Driving records of driver

  • Production year of car

  • Insurance companies

There are a lot of Canadian auto insurance companies and each has different rates and insurance packages and varies from province to province.

5. Auto Insurance For The Poor people

Canadian people who cannot afford the amount of Canadian auto insurance can get their car or auto vehicle insured by the special organization. They work with some specific auto insurance companies in Canada. They don’t charge you a penny for these services and help the people who are financially weak.

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6. Additional Services By Auto Insurance Providers

Apart from providing auto insurance to the basic things which all companies provide some of them also give you extra insulation. This includes all and comprehensive perils and collision insurance. But they will charge you extra for these services.

But it is okay and good that for once you will have all the things insured which are directly or indirectly related to your car.

7. Auto Insurance Tour Around Time:

Don’t buy the auto insurance policy by just visiting one company. Take time and have a short tour of 2 or 3 companies. Check their stuff, costs and other points. In this way, you will get to know the best company. Comparison is the best thing.

Choosing to drive less offers a number of benefits and saving money ranked among the top reasons. According to the belairdirect survey findings, Canadians identified what they believe to be the top four reasons for wanting to get off the road, including:

  1. Saving money related to owning and operating a vehicle (75%)
  2. Reducing carbon footprint, emissions and helping the environment (36%)
  3. Limiting the number of kilometres on the vehicle (32%)
  4. Cutting down on commute to work (11%)

Overwhelmingly, the majority of drivers choose to drive less to save money. So, would Canadians still want to save on auto-related costs with the support of technology?

According to the survey, 80% of Canadians agree that technology helps simplify their lives and is necessary for businesses and society to evolve (79%), and those aged 18-34 embrace technology the most.

The survey found that 74% of Canadians would agree to use an app that tracks their driving habits in order to provide a personalized car insurance premium. Interestingly, those living in urban areas were significantly more willing to use this app.

Conclusion

Overwhelmingly, the majority of drivers choose to drive less to save money. So, would Canadians still want to save on auto-related costs with the support of technology?

According to one of the surveys recently, 80% of Canadians agree that technology helps simplify their lives and is necessary for businesses and society to evolve (79%), and those aged 18-34 embrace technology the most. The survey found that 74% of Canadians would agree to use an app that tracks their driving habits in order to provide a personalized car insurance premium.

Please leave your thoughts and comments below!

If you like the content of this article and find it helpful, please share it on social media and help spread the word. Also, let me know your thoughts and comments in the comment box below. 

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Sagar Sridhar

Sagar Sridhar is a personal finance blogger from Canada. His genuine passion for personal finance coupled with his unique style of writing is what stands out. Professionally, he is a computer engineer, agile certified and has a master's degree in Project Management. His writing has been featured or quoted in the leading Canadian publications such as Credit Canada and many other personal finance publications. While he is juggling between his day job and blogging, he is the main author on this blog and has miles to go before making the final pit stop.

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