Motor Vehicle Insurance Basics for Those in Alberta, Canada
Having the right motor vehicle insurance in Alberta is essential for drivers to stay safe on the road. Insurance protects drivers from financial losses due to an accident or injury and offers peace of mind.
In Alberta, motor vehicle insurance is mandatory for all drivers under the Insurance Act.
Understanding Motor Vehicle Insurance in Alberta
In Alberta, it is necessary to have insurance for any car that you drive or even park on a public road. Even if you are not using the vehicle, you should still have an up-to-date policy.
To get license plates for your vehicle, you must first prove to the Motor Vehicles Registry that you have a valid insurance policy for that specific car. You can transfer your old plates to a new car, but you will need a new insurance policy for the new vehicle.
If you want to switch the license plates from one vehicle to another, you should inform your insurance company to approve the transfer. Otherwise, you could violate the law and be responsible for any damages from an accident.
Additionally, regardless of the circumstances, you cannot use someone else’s license plates on your car. Doing so could lead to hefty fines and other penalties.
How Motor Vehicle Insurance Protects Drivers
Motor vehicle insurance in Alberta provides drivers with a range of coverages designed to help protect them financially in the event of an accident or injury.
The most common type of coverage is third-party liability insurance, which covers costs caused by the insured’s negligence, including medical bills and property damage.
Vehicle insurance includes collision and comprehensive coverages, which cover the cost of repairs to a vehicle damaged in an accident, and rental car coverage, which allows drivers to rent a car in the event their vehicle is damaged or stolen.
In addition to the financial protection motor vehicle insurance provides, it also offers peace of mind. In the event of an accident or calamity, drivers know they are covered and have access to the resources needed to make the situation as stress-free as possible.
Drivers must understand their motor vehicle insurance policy and ensure they have the right coverage for their unique needs. By doing so, they have a guaranteed safety net in case there’s an accident or injury.
What Drivers Need to Know About Motor Vehicle Insurance
If caught driving without insurance, you could be subject to a minimum fine of CAD2,500 and possibly a jail sentence of up to 6 months for a second offense within a year.
Furthermore, you will be held responsible for any harm you cause to another person or their property if you are responsible for an accident.
Your insurance company will not cover any damages to your car if you let someone drive your vehicle who does not have a valid driver’s license or one that’s been suspended.
And, if you were using your car for an illegal purpose, such as racing or criminal trade, your insurance company will not cover any costs associated with damage to your vehicle.
What Drivers Can Do to Save on Motor Vehicle Insurance
It’s essential to make sure you’re getting the best rate possible. While some factors are out of your control, you can also take a few steps to save money on your motor vehicle insurance.
- Shop Around: The best way to find the most affordable insurance is to compare rates from different companies and get the best coverage for the lowest price.
- Bundle Your Policies: If you have more than one vehicle, you can save money by purchasing multiple policies from the same insurance company.
- Maintain a Good Credit Score: Insurers often use credit scores to determine the cost of your insurance premiums, so pay your bills on time and keep your debt levels low to ensure a good credit score.
- Take a Defensive Driving Course: If you complete a defensive driver course, you’ll receive a certificate that you can present to your insurer for a discount.
Remember that the law requires motor vehicle insurance in Alberta and that it’s there to protect you in financial emergencies. So, make sure you do your research to remain updated about the insurance law and about picking the best policy for your specific needs.
Are you looking for auto coverage? Contact Kirkham Insurance. For only a few minutes and basic information about you and your vehicle, they can compare rates from insurance brokers in Alberta to find you the best-fitting policy.