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Wednesday, September 15, 2010

Canadian Automobile Insurance And Available Coverage

No fault insurance has become the kind of insurance that is available in most Canadian provinces. Sometimes referred to as first party insurance, it is rather easily explained. No fault came about as a way to keep insurance rates lower and more stable, as well as controlling court costs when a claim is under dispute. Most of the Canadian provinces now have this type of insurance.

If you are involved in an accident and you have no-fault insurance, regardless of who was responsible for the accident, each party submits a claim to their own insurance company. If you are not the party to blame for the accident and you still have to pay a deductible out of your own pocket, your insurance company will seek to recoup this loss from the at fault driver's insurance.

Civil liberty or third party coverage, more widely known as liability, is a form of financial protection for anyone involved in a motor vehicle accident that is decidedly your fault. It could be the insured or a member of the insureds family. While driving your vehicle, if you caused damage to another persons vehicle or property, you insurance company is liable to make payment for damages to your policy liability ceiling. Many instances have shown that the amount of coverage maintained by most people is never adequate, especially if the courts are involved. It is often recommended that one million should be the amount of liability coverage carried.

Collision, on the other hand, will cover the cost of damages that are done to your vehicle. This could be the result of an accident involving another vehicle or you hitting a guard rail for example. It is best remembered that no insurance company will pay for damages beyond the value of your car.

Anything unexpected that does damage to your vehicle is covered with comprehensive insurance. An unexpected event could be considered theft, vandalism, fire, or any natural disaster. A piece of metal flying off a passing vehicle and doing damage to yours would also be under this category.

Collision and comprehension are not usually considered mandatory but if you should lease or finance a vehicle, it may be required to protect the interest of these parties. A very old car would not be worth the cost of carrying this coverage. Another reason for not carrying these coverages would be if the value of your car can easily be paid for by out of pocket expense if your car is damaged.

There are two other kinds of insurance that are offered in Canada. These are All Perils and Specified Perils and do not take the place of collision and comprehensive but rather, add to them by using All Perils. If a party living in my home were to steal my vehicle, it would be covered. If another party were to service, repair, or drive my vehicle and not return it, it would be covered. In regard to Specified Perils, an insured motorist would be protected against theft, fire and natural disaster but because this coverage is so similar to comprehension, it is usually not recommended.

One of the most popular forms of Canadian insurance would be the endorsement or rider policy. It is not mandatory but can be used to negotiate a reduction or an increase of coverage in regard to some special conditions. Family protection is the most significant as it offers the most financial protection. It not only protects you but all family members that live with you. Serious injuries or death up to the liability limit is guaranteed even if the responsible party has no insurance, is under insured or is a hit and run driver.

An Ontario Auto Insurance deductible is one that you agree to pay out of pocket for expenses incurred in a motor vehicle accident event. If you were to be involved in an accident and damages cost a total of two thousand dollars, the first five hundred would be required to be covered by you, if that is what your deductible is set at. The higher the deductible you can afford to carry, the lower your insurance premiums will be.

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