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What are the points you need to know before insuring your car?

According to the Canadian Federal law, all vehicle must be insured by a 3rd-Party liability insurance plan. Although it is common in almost every part of the world, the claim amount for Canadian vehicles is what that differs from other countries. The minimum coverage amount is $200,000 for any car in Canada, apart from Quebec, which is $50,000. Not only that, if you are a Canadian resident, you must have insurance coverage for any the medical expenses, if in case you have a motor vehicle accident. This is one of the few things that you must know before you dive into this motor insurance staffs. So, in this article, we will discuss some of the essential points before you purchase motor insurance; in fact, before you buy your car precisely.

Car Insurance categories

Typically, there are three different types of car insurance that we are aware of. Here they are:

  1. 3 rd -Party liability: When you choose a 3rd-Party liability insurance plan, you will get coverage for any damage you cause to the other party’s vehicle. Usually, people don’t want this plan because it only applies to other party’s car; and not your vehicle.
  2. Collision: Collision is more of a typical auto insurance plan as it provides coverage to your car, in the case when you had an accident. However, this insurance plan doesn’t cover the damage caused to the other party’s vehicle; but it suitable for starters.
  3. Comprehensive: A Comprehensive car insurance plan can offer complete peace of mind for you. It provides the regular coverage to any damage caused by your fault to your owned car. On top of that, it also provides coverage to any damage caused by your mistake to the other party’s car. Moreover, this plan typically covers theft and vandalism of your car as well.

Who operates Motor Insurance in Canada?

Several private auto insurance companies provide coverages to people who live in Canada. However, in the province of British Columbia, Saskatchewan, and Manitoba, the government operates auto insurance plans. Well, not directly, but they fund some companies which operate auto insurance on behalf of the government. In Quebec, however, some companies run on behalf of the government to process personal injuries and death related claims, whereas, private car insurance companies sort out vehicle damage claims.

Some government agencies set the laws regarding auto insurance, while sometimes the provincial laws and federal laws also intervene. The provincial boards also review the car insurance rates and regulations frequently. The Insurance Bureau of Canada has all the information related to any car one buys from any province or territory in Canada. Moreover, there is the General Insurance Ombud (GIO) Service as well, which takes care of any federal disputes.

Insurance for a foreign car

If you buy and import a foreign car, then first, you have to meet all the safety standards; then you must comply with the Motor Vehicle Safety Regulations. If you clear this part, your car will be registered. However, if you are a visitor, who is carrying their car in Canada, then you don’t need to comply. In the case of foreign vehicles with the sole purpose of visitors or tourists, then those cars must have to comply with the Motor Vehicle Safety Regulations of Canada.

Meanwhile, you came from a foreign country; you can’t sell your car here in Canada, neither you can keep it till the time your visa expires. There is an exception, however, which is for the US people. Generally, US people apply for auto insurance, which includes Canada. As the Canadian government allows this treaty, any US car with Canadian authorization will get all the coverage which is there in his auto insurance plan.

What are the points you need to know before insuring your car?

When you buy an auto insurance plan, typically then send it to your address after the official signatures. They issue a pink card, which is a wallet-sized document; and acts as a proof of the insurance plan that you have purchased. Meanwhile, to obtain car insurance, make sure you do meet up these following aspects:

  • You must have a Canadian Driving License to get your car insurance. However, there are exceptions for some international licenses as well.
  • You must provide correct and updated personal information like name, address, driving license details, and driving records.
  • You must provide correct information about the car you owned including its make, model, mileage, and registration number
  • ¬†You must provide accurate information about your past and current auto insurance
    providers if any.
  • You must provide details of the previous insurance company with its records. Any no claims bonuses will be in considerations as well.

The Conclusion

These are the essential points that you should know before you buy an auto insurance plan. To claim insurance, in case you have an accident; you should claim as soon as possible, and do not forget to report it to the nearest police station to avoid future hassles.

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