Automobile Insurance
Automobile insurance – Canadians should know!
The Internet only analyzes insurance securities and premium rates, but all unknown terms used by insurance agents are still easy to distract attention. Automobile insurance is one of the most troublesome economic needs in life. Many of us don’t like shopping or spending money, but if we do, we will be very happy.
How does it work?
The principle of automobile insurance is similar to that of family insurance, but your insurance policy does not provide insurance for your address, but for your vehicle. The insurance premium to be used by the insurance agency is based on the annual cost of vehicle purchase assessed by the insurance company.
Your car insurance premium is based on many factors. One of them is that the insurance company thinks this is the amount required for the game in the next year. You will pay the insurance premium to your car insurance company every month or every year in return for your car risk.
Then the insurance company will combine all the premiums from the drivers into a large insurance pool. Insurance organizations use the premium pool to meet the needs of drivers who make claims in the current year.
Who needs car insurance?
If you are a Canadian driver, you are obliged to take out auto insurance. If you do not buy it, the fine will be higher. According to the investigation, Ontario people who do not have car insurance may be fined 5000 to 50000 dollars, or their licenses may be revoked and their cars confiscated.
What is the type of automobile insurance in Canada?
The type of auto insurance Canada needs varies from province to province. It is important to understand the requirements of your province or region to ensure that you comply with the regulations.
Third party liability insurance
The basic type of automobile insurance is third-party liability insurance. Third party liability insurance protects you from paying for the loss of anyone’s assets. If someone is hit or injured by your car accident, it will also protect you. The minimum insurance amount varies from province to province, but the minimum insurance amount shall include the medical expenses of the injured in the accident. Third party liability insurance is mandatory in Canada.
Scope of conflict
The second is the conflict checkbox. In addition to protecting you from third-party liability, the collision insurance will further protect you if you drive your car into anything other than the vehicle. This policy will also defend you if you have an accident with an uninsured driver. This is normal. These common levels of applicability often require more accountability.
All applicable scope
The third is the front cover. As the name implies, it provides the most comprehensive protection. In general, you can protect medical and conflict related injuries in the event of theft and flooding. However, the comprehensive insurance premium is usually the highest of the three, so there is a price.
Specified risks and all risks
The other two alternative types of automobile insurance may consider registration as designated risk and all risks. As can be seen from the name, specific risks protect the vehicle from specific losses, such as theft or attempted theft, fire, lightning, storms and earthquakes, and other weather related damage. All risks are a combination of collision insurance and comprehensive insurance.
The important thing is to weigh the amount of insurance you need and the premium you will pay to find the right car insurance coverage for you. Many of us like to buy auto insurance with the lowest premium, but as the old saying goes, you can buy whatever you buy. When shopping, it is important to confirm whether the insurance amount you receive is enough. The last thing you want is that if you need to make a claim, you will eventually pay a large amount of money out of your own pocket.
Are auto insurance different in different provinces?
although drivers in all provinces of the country must take out auto insurance, the key change depends on where you live. For example, the coverage level fees that users will pay vary by last name. In most provinces, your only option is to buy auto insurance from a private company. However, some provinces still allow personal and bus insurance.
Factors affecting the cost of automobile insurance
It may be more meaningful to know how the premium is determined. Insurance companies evaluate car insurance premiums based on several factors, including car brand and model, driving experience, age and gender.
Automobile brand, model and production year
The vehicle brand, model and production year have a great impact on the insurance premium. For example, sports cars are usually more expensive than cars. This can be attributed to two factors: sports cars not only have high retail prices, but also are more prone to collision.
Driving record
Your driving history is another important factor. If you are a very safe driver and you have never received as many speeding tickets as you have, you can save thousands of dollars in car insurance premiums than those who have had several speeding tickets and had a collision.
Deduct points
The deduction of points for driving violations(such as cycling and speeding) will also affect your car insurance premiums. The deduction will not immediately affect your car insurance premiums, but as long as your insurance company checks your driving records, when the insurance policy expires, The deduction of points will affect your insurance premium.
Residence
Many drivers don’t realize where you live will have a great impact on their car insurance premiums. Some communities have more car insurance applications than others. If there are many invasions and conflicts in your area, Please be prepared to pay the price. I’m not saying that car insurance should encourage you to move, but of course it should be noted.
Age and sex
The other two factors that affect automobile insurance premiums are the age and gender of the applicant. The insurance industry is one of the few industries that are legally treated differently according to age and gender in pricing. When everything is considered equal, The older you get, the less you usually buy car insurance. Because men are known for showing more dangerous driving behavior, they generally pay more car insurance premiums than women.