Automobile Insurance Coverage in Canada

provinces in Canada have begun using 'no fault' orwould fall under the category of vandalism, or a flying
first party insurance coverage, as it is also sometimesobject such as something that may come off
called. This kind of insurance helps to in the control ofanother vehicle and hit yours. Theft, natural disasters,
court costs when claims are in dispute. It also worksfire and and damages due to a riot or disturbance are
to get assistance for victims of an accident asall covered under comprehensive insurance.
quickly as possible. Most importantly, no faultCollision and comprehension are not usually considered
insurance was instituted in the hope of keepingmandatory but if you should lease or finance a
insurance premiums more stable.vehicle, it may be required to protect the interest of
If you are involved in an accident and you havethese parties. A very old car would not be worth the
no-fault insurance, regardless of who was responsiblecost of carrying this coverage. Another reason for
for the accident, each party submits a claim to theirnot carrying these coverages would be if the value
own insurance company. If you are not the party toof your car can easily be paid for by out of pocket
blame for the accident and you still have to pay aexpense if your car is damaged.
deductible out of your own pocket, your insuranceAll Perils and Specified Perils are two other types of
company will seek to recoup this loss from the atinsurance that you may wish to carry. Not meant to
fault driver's insurance.replace collision and comprehension, All Perils would
Canadian auto policies have a very good reason forinclude both collision and comprehension as well as
having you protected from third party liability. Liabilityinsuring your car for loss or damage if it is ever
coverage, that is also referred to as civil liberty orstolen by anyone who lives in your home or a person
third party coverage, aids in the financial protectionthat you have hired to repair, service, or drive your
you will require if you or another person on yourvehicle. Specified Perils would protect you only
insurance policy, is involved in a motor vehicleagainst certain situations such as fire, theft, and
accident that is considered to be your fault. In othernatural disaster. This kind of coverage is not usually
words, you have caused damage to another personsrecommended.
property or vehicle while driving a vehicle that youAn endorsement or rider, which is not always
own. In circumstances such as this, your insurancemandatory, is an option by which you have the right
company has the liability to the claims against you upto increase or reduce your coverage under some
to the limit of your policy coverage. Quite often thespecified situations. A most popular protection under
amount of coverage one has for liability is notan endorsement would be family protection. The
adequate to pay the amount that is sometimes courtfinancial protection it provides is significant. If you, or
ordered. Many insurance companies will suggest thatany member of your family, were to be seriously
you carry one million in coverage and if you lease orinjured or even killed by a motorist that is either
finance a vehicle, these parties will require thatuninsured, under insured, or even in the case of a hit
amount.and run accident, you would be financially
Coverage for collision aids in paying the expensescompensated up to the limit of your liability.
incurred if your vehicle should hit another vehicle, orAn insurance deductible is one that you agree to pay
an object like a guard rail, causing damage to yourout of pocket for expenses incurred in a motor
car. Regardless of the amount of collision coveragevehicle accident event. If you were to be involved in
that you carry, an insurance company will not payan accident and damages cost a total of two
out anymore than the value of your vehicle at thethousand dollars, the first five hundred would be
time the accident occurred.required to be covered by you, if that is what your
Comprehensive insurance is the coverage that helpsdeductible is set at. The higher the deductible you
with the cost of repairs when your vehicle iscan afford to carry, the lower your insurance
damaged due to an unexpected event. These eventspremiums will be.