Wednesday, April 13, 2011

Understanding Auto Insurance Coverage

Everyone who drives a car in Canada needs car insurance. It is required by law. When you buy car insurance, you are buying a policy. A policy is based on several different factors and is actually a package of different types of insurance coverage.

Your insurance policy will cover you for expenses such as medical treatment and care, legal costs, property damage and loss of wages if you’re involved in a car accident. When choosing a coverage package, you can choose different levels of coverage depending how much protection you want.

The premium is the amount to be paid for your car insurance policy. The cost is different for every individual and is based on a variety of factors such as:
• The make and model of your car
• Your driving record
• Your insurance claim record
• Your level of driving experience
• Your age
• Where you live
• The distance you drive to and from work.

Insurance companies offer various types of coverage and they are as follows:
Liability – This coverage pays for accidental bodily injury and property damages to others. Injury damages include medical expenses, pain and suffering, property damages and loss of wages.

Collision – Protects your car against damage caused by impact with another vehicle or an object such as a guard rail.

Comprehensive – This covers fire, theft, vandalism and damage caused by natural disasters such as tornados, floods and ice storms.

All perils insurance – combines the coverage provided by collision and comprehensive insurance.

Specified perils – protects your car against specific types of danger such as theft or attempted theft, some natural disasters and riot or civil disturbances.

There are several things that can bring your car insurance premium cost down:
• Have a clean driving record
• Take driving courses
• Combine insurance policies
• Carpool or drive less
• Purchase a low profile car Now just might be time to refresh your memory on where your policy stands.

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1 comment:

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