When it comes to automobile insurance, the same policy won’t work for every driver. Having the right kind of coverage for your vehicle is the most important part of insuring your car, and of course the kind of insurance you have is what makes up the final quote that your broker or your insurance company gives you. But what does each kind of insurance mean, and do you actually need what you’re getting? Here are 10 car insurance terms that will help you figure out the coverage that’s right for you, so that you can get the best insurance quote possible.
- Liability Coverage
Every vehicle in Ontario has to carry at least $200,000 in third party liability coverage. Most people choose to increase this amount substantially. This kind of insurance is the baseline for any policy, and protects you if you are involved in a collision or if you injure yourself or another driver.
2.Uninsured Driver Protection
This kind of coverage will protect anyone under your policy if you are injured by a driver who does not have insurance. This kind of insurance also applies to accidents where the driver is not identified, such as a hit and run.
- Accident Benefits
Accident benefits are also mandatory in Canada, so your insurance quote will include this automatically. This kind of insurance covers income replacement, medical needs, rehab, caregiver costs, and non-earner benefits. Even though this kind of insurance is mandatory, you can choose how robust you’d like your coverage to be, which could in turn bring down your original insurance quote. Comprehensive Coverage
This kind of insurance protection is a smart addition if you live in an area that’s prone to theft. Comprehensive coverage protects your vehicle if it’s vandalized or incurs damage from a natural disaster.
- Collision Coverage
Collision coverage isn’t mandatory in Canada, however it’s an addition that most insurance brokers will recommend because it covers damages to your own vehicle. When you’re comparing insurance quotes, having this kind of coverage will add significantly to your premium if you own a car that is expensive to repair or replace.
- Depreciation Coverage
This coverage covers the replacement of your vehicle if it’s stolen, or you’ve been in a collision that has rendered your vehicle beyond repair..
- Transportation Replacement Coverage
The name explains it all. Transportation Replacement Coverage takes care of rental fees that you pay while your vehicle is getting repaired or replaced. If you depend on your vehicle for your job, it makes sense to add this kind of coverage just in case.
When you’re looking for car insurance quotes, it’s important to look at what kind of coverage is necessary for your lifestyle and your vehicle. If you’re driving a car that’s not very valuable, depreciation coverage may not make sense for you, and if your commute to work is short, you may not need transportation. Research policies online, and give your broker a detailed description of your driving habits, so that you ensure the right insurance premium for your vehicle.