As a car owner, you might recall the intensive research and efforts you took to choose the right model. Well, shopping for the right car insurance policy can be equally daunting. At the outset, here’s a hard fact for you–unless you purchase third-party liability insurance, you cannot drive your vehicle anywhere in the country.
You might also be wondering about the other coverages and how you can customize a policy for your vehicle. Reputed insurance specialists such as Surex have been comprehensively guiding their clients in this regard. You may visit this site and consult with professionals regarding the most economic auto insurance policy.
Who Would Need An Auto Insurance In Canada?
Anyone driving a car in Canada would require automobile insurance. Overlooking this insurance can invite hefty fines, ranging between $5,000 and $50,000. Considering the massive amount that you would be shelling out as fine for a single offence, it makes sense why most drivers value automobile insurance in Canada.
Most importantly, the authorities might impound your car and suspend your driving license, if you are caught driving without automobile insurance in Canada. Wait, there’s more! In case you land in a hassle for driving without a license, you would be tagged as a high-risk driver. This implies that you would have to fork out higher premiums for automobile insurance policies. Some of the insurers may even refuse to provide you with coverage in the future.
As an uninsured driver, if you are involved in an accident or collision resulting in the death or injury of another person, you would have to bear the medical expenses and other costs arising in the process.
Types Of Auto Insurance Policies In Canada
There are several options for someone looking for auto insurance in Canada–some mandatory and some optional.
1. Third-Party Liability Coverage
As a driver, it is mandatory to get third-party liability coverage. This type of insurance would financially secure you against compensation for the damage you’ve inflicted on the property of a third party. This also secures the policyholder, if the person is at fault for the accident that results in the death or injury of another person.
2. Collision Coverage
Firstly, collision coverages can secure policyholders from third-party liabilities. Next, it would also cover the financial expenses in case your car hits an object other than vehicles. In case you are at fault, this policy would also cover the other driver who is not insured.
3. Comprehensive Coverage
You can guess from the nomenclature that a comprehensive auto insurance policy offers coverage against the broadest range of risks. Apart from third-party coverage and collision, it also covers the vehicle in case of man-made or natural disasters, and also theft. Cost-wise, these policies are the most expensive given their broad ambit.
These are optional packages that are designed to cover specific dangers to your vehicle. You may purchase these add-on policies depending on your unique requirements. Some of the common benefits that tag along with add-ons are roadside assistance, towing services, fueling cars, etc.
Now, when you purchase your car insurance policy, you would be looking for maximum coverage. Therefore, it would be wise to go for comprehensive coverage and pick a few add-ons, as per the recommendations of the insurance specialists.
What Factors Determine Your Premiums?
Your premiums may increase or decrease following a negative or positive effect by any of the following determinants respectively.
1. Driving History
Your driving record goes a long way in determining the premium costs. If you have never received a speeding ticket or met with an accident in the past, you can save a significant amount. Drivers with clean records substantially benefit from low automobile insurance premiums. The insurance companies would consider you to be a low-risk driver and eventually ask for lower premiums.
2. Vehicle Particulars
The insurers would consider the particulars of your vehicle such as the production year, model, and make of the car while determining the premiums. For instance, a sedan owner would be shelling out lower premiums as compared to a sports car owner. The reason is that high-end car have a greater retail price. Besides, sports cars are more likely to be involved in accidents.
3. Demerit Points
If you have somehow garnered demerit points, you are likely to shell out higher premiums. Certain driving infractions such as speeding or dooring a motorist can put a dark spot by your name. Please note that demerit points would not have an immediate impact on your premium. However, when you renew the policy, the higher premiums would come to bite you.
4. Gender And Age
The gender and age of the policyholder also determine the premiums significantly. Other things remaining constant, you would be paying lower premiums as you gain driving experience. Therefore, younger drivers need to shell out more premiums. By the time you reach the age bracket of 25 to 30, you would notice the rates gradually diminishing.
Also, male drivers have to pay higher premiums as compared to females. This is because men are more likely to exhibit risky behaviour during driving or flout norms.
This might be new to you but your location can have an impact on your automobile insurance premiums as well. Certain areas are more susceptible to thefts, riots, or other perils. You should be aware of how your location would impact your automobile insurance plan.
Tips To Save On Your Auto Insurance Policy
Luckily, the insurance premiums are not etched in stone and there are always ways you can avoid them.
1. Raise Your Deductible
Your deductible is the amount that you would personally pay before the insurers cover the remaining part of the damage. When you opt for a higher deductible, you would be saving on the subsequent monthly premiums.
2. Bundle Packages
People who own both homes and cars often purchase the respective insurances from the same company. The insurers bundle both the plans and allow you some savings.
3. Shop Around
It pays to shop around and consult one of the insurance specialists before zeroing in on your insurer. Top insurers often offer discounted rates to policyholders. Besides, you need to tally plans and their benefits before you make a decision.
Purchasing the right insurance policy for your car is imperative, considering the range of coverage and your premiums. It would be a logical move to seek professional support from an insurance specialist and benefit from their experience and knowledge.