Canada’s law requires all drivers to have car insurance, regardless of where they are driving. In all provinces and territories, this is mandatory. You must have insurance that covers your vehicle. If you’re caught driving without this coverage, you could be charged with a fine, suspended your driver’s license, and have your vehicle towable and impounded. Fines can be as high as $5000 or as low at $50, 000.
You could be held responsible for any accident that you cause while driving without insurance.
If you are responsible for the death or injury of another person, you may be held responsible for any vehicle damage, medical expenses, or other losses. You won’t be entitled to compensation for your injuries, vehicle damage, and income loss.
If you are found to be at fault, you may not be allowed to file a claim against another driver.
Your insurer could consider you a high-risk driver if you are convicted of driving without insurance. This could result in your premiums being increased and your driver’s license suspended. They may also cancel your policy.
It is dependent on many factors which will determine how much you pay. These are:
New Driver: Because new drivers don’t have a driving record, companies usually rate them as high-risk. You will be charged more for premiums if you don’t have a great driving record.
Driving record: Your insurance premium will be affected by your driving record. Insurance companies will look at your driving record and how many convictions you have. Convictions include driving violations like running a red light, speeding tickets and car accidents. Your premiums will be lower if you have a clean driving record.
Your premium will be affected by the type of car you drive. The make of a vehicle is used to determine its rating. The risk of theft, vehicle history and injuries are all factors that companies consider when determining rates. Rates are also determined by the age and mileage of the vehicle.
Insurance discounts that are common include age discount, multi vehicle discount, multi line discount (insuring both your home and car with the same insurance company), anti-theft device discount and low mileage discount.
An insurance policy can include a variety of features. These are the two most important types of coverage:
Collision Insurance: This coverage covers damage to your vehicle that results from a collision between another vehicle or object.
Third-Party Liability Insurance: This insurance protects you in the event that your vehicle causes injury to another person or damages their property. All Canadian provinces and territories have a mandatory liability requirement.
There are restrictions on the amount of compensation that you can get in some provinces. In Prince Edward Island, Nova Scotia and New Brunswick, for example, the maximum amount you can claim for pain or suffering is $2,500. This cap is independent of what you get in insurance benefits. Separate claims for pain and suffering are made from property damage, medical expenses, and loss of income.
Auto insurance can be purchased from many places. It can be purchased from an insurance broker or agent, as well as a direct writer. Brokers sell policies to a wide range of insurance companies. Only one insurance company is represented by insurance agents. Insurance companies that sell insurance directly to customers are called direct writers. The insurance company must provide the coverage noted on a Certificate of Automobile Insurance. The certificate only covers you. Prices can vary between companies, so be sure to shop around.
Car insurance is required in Canada. You should have it before you start driving. It is much more expensive to get insurance than it costs to be caught.