Understanding car insurance can be difficult. Especially if it’s your first exposure to Canadian auto insurance. If you’re wondering what auto insurance is, what insurance options you have, and how to get it, we’ve briefly covered some frequently asked questions to help you better understand the subject. Since it is illegal to drive a car without insurance and insurance protects you as the owner/driver, really understanding how car insurance works and what type of insurance you need to buy before you hit the open road Insurance is a good idea. Or what type of insurance should be purchased when driving on any road. So, let’s start with the basics.
What is car insurance?
Whether you’re leasing a car, taking out a loan, or buying it outright, auto insurance is the mandatory coverage you need to buy to protect you from any potential accident or financial loss from damage to your car. For example, buying car insurance can protect you from paying for car repairs due to an accident, as well as cover you if you are responsible for an accident that causes damage to someone else or their car. In addition to the mandatory coverage required by law, you can add optional coverage to your policy to enhance your coverage, which we describe in more detail below. Once you have signed a contract with a Kemper insurance company, you are responsible for paying the premium, which will make your car insurance effective and come into play in the event of an accident with you and/or your car.
How does car insurance work in Canada?
Since auto insurance varies from province to province, there is no one-size-fits-all answer to this question. While auto insurance is mandatory nationwide, auto insurance is regulated at the provincial level rather than nationally. Well, car insurance in Canada is also divided into public insurance and private insurance. But, of course, some provinces offer both coverages. Let’s dive into examples of different types of car insurance and how they differ.
What is bus insurance?
Bus insurance means that the company that insures your car (and everyone else who has car insurance in the province) is a government-owned company. For the public insurance system, you can also choose to expand your coverage through private, listed, or mutual insurers.
What is private car insurance?
Private auto insurance means that the company that insures you (and everyone else in the province) is a private, public, or mutual insurance company. For example, TD Insurance is a wholly-owned subsidiary of TD Bank, a public company, and we offer many different types of auto insurance.
Which provinces currently offer public and private auto insurance?
In British Columbia, Saskatchewan, and Manitoba, the auto insurance industry is run by the government. However, only in British Columbia, non-public insurers can offer optional top-up coverage. In all other provinces and territories, auto insurance is provided by private insurance companies. The exception is Quebec, which uses a hybrid insurance model. In Quebec, public insurers only provide personal injury insurance, other insurance (for example, civil liability, collision, and/or comprehensive) is provided by private insurers.
What types of car insurance are available in Canada?
As we mentioned above, mandatory coverage varies by province, and there are additional coverage options (also known as optional or add-on coverage). Here are some of the coverages TD Insurance offers:
Enhanced/Optional Insurance:
- Specific Risks – Covers your vehicle in the event of specific risks, such as damage from fire, flood, hail, or theft.
- Comprehensive Insurance – All other insured damage to your vehicle (except collision or rollover insurance).
- Collision or Rollover Insurance – Damage.
- All Risks – This package combines collision or rollover coverage with comprehensive coverage.
How to get car insurance?
For private auto insurance, most insurance companies offer an online quote, which is the perfect first step. For TD Insurance, you can get an online quote in minutes. You can then purchase coverage online or over the phone from a TD Insurance licensed advisor. From start to finish, it’s a quick, easy, and convenient process. If you’re looking for more information, you can also read this introduction to how to get auto insurance.
For bus insurance, it is best to consult a government-owned company for the most accurate information on how to get the right car insurance.
How can car insurance premiums calculate?
Whether your insurance is provided by a public or private insurance company, there are different factors (such as the type of car you drive, your driving record, and the type of coverage you choose) that affect the amount of premium you pay.
Is there any way to save on car insurance premiums?
Yes, of course, TD Insurance offers a variety of ways to save on your premiums. From bundling home and auto insurance to get great rates for alumni or professionals, you can save money in many different ways. Check out these simple tips to help you save on car insurance premiums.
