A New Canadian's Guide to Cheap Car Insurance
Auto insurance options in Canada may have many similarities to what is available in the United States;
however, there are also some very important differences between the
two countries. While having at least some form of insurance is
mandatory everywhere in Canada, specific laws and regulations are set
by individual provinces and territories. Therefore, how you get
insurance and the type of insurance that you need to carry will vary
depending on which province you move to.
The Government's Role
in Canadian Car Insurance
According to the InsuranceBureau of Canada, the provinces
of Manitoba, Saskatchewan and British Columbia have government-run
insurance agencies that provide basic coverage for bodily injury and
property damage. Private insurers in these provinces sell policies
that complement the mandatory government-run insurance by providing
additional coverage. In the province of Quebec, private insurance
companies sell liability and property damage coverage. The
government-run system handles all claims for bodily injury and death
in the province. The cost of this coverage is included in the price
of obtaining or renewing a Quebec driver’s license.
Another
thing worth knowing about insurance in Canada is that health care
coverage is provided by the government of each province. Therefore,
if you are eligible for Canada's public health insurance, you will
not have to deal with costly medical bills and complicated claims
procedures if you are injured in a car accident.
What are the
Average Car Insurance Rates in My Province?
Despite the
differences, there are many similarities between Canadian and US auto
insurance companies. The criteria used to determine the cost of
coverage is based on a variety of factors. One is the location you
live in. Just like there are differences in insurance rates between
various American states, auto insurance costs will be different in
each Canadian province. TheFraser Institute has recently
completed a study of average auto insurance rates in different
provinces, concluding that British Columbia was the most expensive,
and Quebec had the lowest average premium.
How Can I Save on
Car Insurance in Canada?
Other factors, such as your age,
driving record, credit history and the type of vehicle that you drive
will come into play as well. Most insurers will ask you about the
length of time that you've held a Canadian driver’s license. If
you've just recently exchanged you American license for a Canadian
one, they may consider you to be a “new driver” and charge you
higher premiums. If you have a good driving record in the US, you may
want to consider getting a driver’s abstract from your state's
Department of Motor Vehicles and present it to the insurer when you
apply for a policy. This is because the majority of insurance
companies in Canada will not automatically ask the DMV for your
driving history, even if you tell them that you've held an American
driver's license before.
When buying a new or used car in
Canada, you should make your decision carefully. Powerful sports cars
have a bad reputation for being involved in traffic accidents, as
they are favored mainly by young men. Luxury vehicles may make a more
attractive target for thieves. The Insurance Bureau of Canada
publisheda report showing
how different cars measure up in terms of collision, theft and other
claims.
Categories:
Auto insurance,
Car insurance,
Insurance
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