The best Canadian auto insurance companies depend on several factors. There are individual differences in drivers, differing rates at different times, individual providers and, unique to Canada, is the fact that there are widely different insurance laws from province to province.
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Therefore, the most important rule you can follow in purchasing car insurance in Canada is to begin by comparing the rates and reviews of several car insurance companies.
Is car insurance required in Canada?
Just like in the United States, you are required to purchase car insurance if you are planning to drive in the country of Canada. Insurance regulations are governed by a document known as the “Code of Consumer Rights and Responsibilities.”
Although car insurance is required in the country, the exact details of the type and how much insurance you need varies depending on which province you are in.
What should you look at when comparing Canadian auto insurance companies?
It is always best to begin by researching several car insurance providers. Get a list of quotes online by providing some basic information about yourself. This will help you to get an idea of the cost you will be paying and help you to eliminate companies offering a minimal policy for a high premium.
Once you have narrowed your list down do some additional research on the companies you are considering. Consumer Reports rates insurance companies based on several factors including premium costs, deductibles, claims paid out, and cancelled policies.
You can also look into online forums where people discuss their experiences, both good and bad, with various companies. Finally, try to talk to some local repair shop managers in your area. They often are a wealth of knowledge when it comes to which companies are easy to deal with and which will fight every claim that comes their way.
Once you have narrowed your list down further you can continue to do your research online or opt to speak with a company agent directly. If you have poor credit you’ll want to find a company that does not use credit scores when they evaluate potential customers. Also find out what discounts companies are offering that may apply to you. These might include:
- Good student discount
- Low mileage discount
- Defensive driving course discount
- Discounts for added safety equipment in a vehicle
How do I search for car insurance in Canada?
When you are looking for car insurance in Canada, you can search for it similarly to how it is done in the United States. There are a number of insurance companies located in the provinces of Canada. If there is one in your local area, you can call them or stop in to the office to speak with a representative face-to-face.
You can also do a general search online to find insurance companies near you. You can work with an insurance company directly or you can use an insurance broker. A broker will search a number of companies and policies to find the best policy for you at the best price.
One of the best ways to find an insurance company in Canada is to ask friends or coworkers as to who they use for insurance and if they are satisfied. If they are happy with their coverage, you can get a referral from them and you can feel comfortable that you are working with a trusted agent and company.
How can I save money with Canadian auto insurance?
Canadian car insurance companies offer ways to help save you money. One way is through different discounts. When you are searching for car insurance, ask the representatives about any discounts that are offered by the companies. If you are eligible for them you may be able save a good amount on your insurance premiums.
Another way to spend less on your insurance rates is by choosing a higher deductible or a lower limit. Although these may increase your out-of-pocket expenses in the case of an accident, they will decrease your premium. Speak to your representative to see what choices you can make to help lower the cost of your insurance, if that is a goal of yours.
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What personal factors must you consider when shopping for a Canadian auto insurance company?
Insurance companies evaluate you using several factors to determine the level of risk for them in agreeing to take you on as a client. You should try to find out what factors an insurance company will be using, which can often be determined by the questions they ask you, and use this to determine which ones will be more forgiving than others.
For example, some companies have accident forgiveness policies where one or two minor accidents will not cause a raise in your rate. Others are stricter and raise your rate for every minor infraction. Here are some common factors that insurance companies will use when rating you as a driver:
- Driving record
- Car make, model, and age
- Driver’s age and gender
- Driver’s occupation
- Location where you live and work
- Average monthly or annual mileage
- Credit rating
- Parking location
What provincial laws impact Canadian auto insurance companies?
While some laws remain the same nation wide, many insurance laws differ from province to province and may impact the insurance provider you decide is best for you. Auto insurance is required in all provinces and all provinces also maintain that you must have liability insurance at the very least. That is where the similarities end.
In British Columbia, Saskatchewan, and Manitoba there are government run insurance companies which provide you with a basic level of coverage. You must prove you have this prior to being allowed to register a vehicle in these provinces.
Since registration is tied to this government insurance your registration stands for proof that you are insured instead of carrying a separate insurance card. You may opt to purchase additional coverage through a private insurance company.
In Quebec, bodily injury claims are covered by the government (public plan) so these do not need to be covered under your private auto insurance policy. All other auto claims, as well as, injuries that occur while you are travelling outside Quebec, must be covered by private insurance.
Lawsuit laws are also different from province to province making the amount of liability coverage you need to carry, different. Quebec, Saskatchewan, and Manitoba have laws that state you cannot sue for pain and suffering.
This was done to reduce the number of frivolous claims that cost money and clog up the court system. In Ontario, pain and suffering can only be included in a lawsuit where you can prove that serious bodily injury or disfigurement has occurred.
In Ontario and Quebec insurance must be able to compensate you for the loss of the use of your automobile and your share of the damage when another driver is at fault in an accident. Accident Benefits Coverage, which compensates you and your passengers for injuries regardless of who is at fault is mandatory everywhere except Newfoundland and Labrador.
If you are looking for additional information on Canadian auto insurance laws you can contact the Insurance Bureau of Canada or Transport Canada.
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