What to Consider When Choosing the Right Auto Insurance For You

Choosing auto insurance isn’t just choosing a company and signing up for a policy. Like life insurance, auto insurance is there to protect your assets and your family from financial harm. Auto insurance companies are there to help you file a claim if your car is stolen or damaged beyond repair. So how do you make sure you’re choosing the right one for you?

Who Needs Auto Insurance?

First of all, it’s important to realize that every state requires that you carry some form of auto insurance. No matter what. Every time you get behind the wheel of a car, you have a financial liability that your insurer would have to cover. Even if you have a “lease” or “loan” car, you still have liability. 

If you don’t carry insurance, you can be fined between $5,000 to $50,000 for a single offence, your license can be revoked, and your car can be impounded. So don’t try to save money by driving uninsured.

How Does Car Insurance Work?

Simply put, car insurance is there to pay for damage or injury you cause to others. If you are involved in a car accident where property or people are harmed or damaged, then you will file a claim with your insurance company. Some insurance companies might cover damage to your own car, while others consider it a “liability” and will not cover it.

It’s a good idea to check your policy and make sure you are covered for this as well. If you have comprehensive coverage, you can file a claim, but if you don’t, you might have to pay for repairs on your own.

What are Different Types of Auto Insurance in Canada?

1. Third-Party Liability Coverage 

Most basic car insurance in Canada includes third-party liability coverage, which is there to protect you from damage you cause to others. This is the most basic coverage you can buy and is required by law. This coverage is there to protect passengers in your car and pedestrians as well.

2. Collision Coverage 

Collision coverage protects your car if it is damaged in an accident. Whether you hit another vehicle or another object, your car is protected. Collision coverage is also important to have when you lease or “loan” a car since the leasing company might not have insurance to cover the vehicle if it is damaged.

3. Comprehensive Coverage 

Comprehensive coverage protects your car if it is stolen or damaged by weather. If you have comprehensive insurance, you will be able to file a claim if your car is stolen, vandalized, or damaged by hail or other weather events.

Comprehensive Insurance is a good idea in the summer and winter since the weather is one of the leading causes of car damage.

4. Specified Perils and All Perils

The difference between these two is that specified perils cover only those risks that are included in your policy, while all perils insurance covers any risk that causes damage to your car.

All perils are more expensive, and you must read your policy to make sure it is what you need. If you’re only worried about winter weather, then consider only getting covered for that. If you want to be covered for everything and anything, then all perils might be the best plan for you.

The Bottom Line: The Importance of Having an Auto Insurance that Meets Your Unique Needs

Auto insurance is a complex product that can meet a variety of needs. Some people only want to buy basic liability coverage, while others want more coverage, like theft and damage coverage.

No matter what you choose, make sure you are covered for the events and circumstances that will be most likely to affect you and your family.

Are You Looking for Auto Insurance Brokers in Lethbridge?

If you need auto insurance in Lethbridge, contact the expert brokers at Kirkham Insurance to help you find the right policy. We provide free insurance quotes on different policies and companies so you can find the right auto policy at the right price.

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