Choosing an Auto Insurance Carrier in Canada

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( — January 8, 2020) — Owning a vehicle can provides you with a wealth of freedom and autonomy, but it also comes with its fair share of responsibility. Indeed, after signing on the dotted line, car owners still have some work to do. Specifically, they must obtain auto insurance.

While car owners may naturally ask, “What is the cheapest car insurance?” a better approach would be to ask which car insurance company provides the best value for your money. This strategy is more likely to result in you obtaining car insurance that covers all your needs while remaining budget friendly.

Mandatory Insurance Coverage

Every Canadian province requires car owners to carry basic auto insurance. Now, specific requirements vary by province, but all policies must include liability coverage and coverage for bodily injury from accidents. Additionally, lending a car to someone who isn’t on your policy could adversely affect your insurance or premium if that person is involved in an accident.

Liability coverage covers losses, injury or death caused to other passengers in an owner’s vehicle or in other vehicles, as well injuries or death suffered by pedestrians. If the amount of a car owner’s liability insurance doesn’t completely cover all injuries, the balance must be paid out of pocket by the car owner.

Benefits for bodily injury cover the cost of a car owner’s own medical expenses and loss of income resulting from a car accident. This coverage is automatic for drivers in Quebec, with premiums included in the cost of their driver’s license registration.

Optional Insurance Coverage

Optional collision insurance covers the repair or replacement costs for an owner’s car that collides with another car or something else. Comprehensive insurance is also optional and covers repair costs to an owner’s car from damage, theft or vandalism.

Additional optional insurance covers costs like rental car allowance, emergency roadside assistance and replacement value coverage for a totaled car. Drivers with good records may be eligible for first-time accident forgiveness, which prevents premium increases after an at-fault accident.

Insurance Coverage for Rideshare Drivers

Did you know motorists who drive for rideshare companies may have difficulty obtaining insurance? Many carriers will raise premiums or cancel insurance policies if they discover policyholders are driving for rideshare companies. To compensate, rideshare companies often provide their own insurance for drivers

Rideshare services were previously outlawed in British Columbia. But under regulations that took effect in September 2019, rideshare drivers in the province must obtain blanket, per-kilometer auto insurance through the Insurance Corporation of British Columbia. This insurance, which includes mandatory third-party liability and accident benefits, is only effective while the policyholder is driving for a rideshare service.

Money Saving Tips for Auto Insurance

Even bare-bones mandatory auto insurance can represent a major expense. Some strategies to save money include dropping collision insurance for an older vehicle, accepting a higher deductible, and bundling multiple insurance policies with the same company. Choosing a car with a good safety rating can also translate to lower premiums, and good drivers can often save significant costs by installing telematic devices to monitor their driving habits.

Choosing the Right Auto Insurance Carrier

Choosing an auto insurance carrier depends on multiple factors, including car model, who’s driving the car, whether the car will be used for ridesharing and where the vehicle owner lives. However, savvy drivers know Kanetix offers fast quotes and great rates for the coverage they need. And because Kanetix has years of experience in the industry, car owners can be confident that their coverage will be there when they need it.