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How To Buy Car Insurance
I just bought my first car, and I want to know what kind of insurance I should have. Can you give me some tips?
To steer you in the right direction, here are some basic questions you should ask your agent or broker before you buy your insurance.
- What is covered in my automobile policy?
Everyone must carry basic insurance. This package will vary from province to province, but it will include liability coverage and accident benefits. (Liability coverage is needed if you injure someone, or damage someone else's property with your car, and they sue you. Accident benefits pay for your medical expenses, and provide you with replacement income - subject to limits - if you are injured in an accident.) Ask about other features that may be included in your province's mandatory insurance coverage.
- Who is covered in my auto policy?
Any licensed driver driving with your permission is covered. However, all licensed drivers in your household must be declared. And remember - your insurance goes with your car, so if you lend your car, you also lend your insurance. Don't do it lightly - if the person who is using your car causes an accident, it will go on your insurance record, and your premium (what you pay for your insurance) may increase as a result.
- What optional coverages are available?
The most common optional coverages are collision (which pays to fix or replace your car if it's damaged in an accident), and comprehensive (which pays to repair or replace your car if it's damaged by something other than collision or upset). However, there are many other optional coverages. For example, loss of use, which pays for a rental car if your car is damaged in an accident and is being repaired. Ask your insurance provider about the full range.
- What is my deductible? What do you recommend?
Collision and comprehensive coverages have deductibles (the portion of a claim that you have to pay). Ask how it will affect your premium if you choose a higher or lower deductible. But don't choose such a high deductible that you couldn't pay it out of pocket if you had a claim.
- Am I entitled to any discounts?
Some insurance companies offer discounts to older drivers, those who insure more than one vehicle with the company, those with no claims for a certain period of time, and, in the case of young and new drivers like yourself, those who have passed an accredited driver training course. Make sure you get any discounts for which you are eligible.
You can obtain a copy of "Choosing Your Vehicle" by contacting: Client Services, Insurance Information Centre of Canada, 240 Duncan Mill Rd., Suite 700, Don Mills, ON, M3B 1Z4. Or visit the website at:
http://www.vicc.com. The Vehicle Information Centre of Canada is a division of the Insurance Information Centre of Canada.
Note: Remember, policies vary, so when in doubt, Contact
Us.
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