What is car insurance?
What is the need for auto coverage?
Canadian Car owners always have the nagging thought at the back of their head about what to do when involved in an accident. If a vehicle gets involved in an accident or is liable for compensation then car insurance provides the necessary financial protection. This protection is available for both the vehicle and the driver.
These schemes are mandatory in most countries and some countries even have strict penalties if a car does not have the protection. There are numerous insurance companies that provide various car insurance schemes for car owners. They have flexible plans and usually the duration is one year and the owner is required to pay the premium. The excesses if any will be added to the premium charges. Excess is the amount paid by the car owner if he uses the insurance for any damages. In case the fault for the accident lies on the other person then the excess can be derived from his insurance cover.
Public insurance system The type of Car insurance for the car owner depends on the province. Some provinces namely British Columbia, Saskatchewan, Manitoba and Quebec follow the public insurance system. In such a system the local provincial government will control the insurance scheme. It will provide the insurance cover for all cars and the car owners are required to pay the premium to the government.
This scheme has been relatively cheaper and better protection is provided since the government provides it. Saskatchewan province has been one of the first provinces to shift to such a type of car insurance system in 1945. Other provinces like Manitoba and British Columbia followed suit in 1971 and 1973 respectively. There are more provinces that are considering the introduction of such schemes on the back of a steady increase of premium costs by the private insurance companies. Newfoundland and Labrador are also considering introducing such systems following increases in premium rates and recession.
No- fault insurance benefit
The rest of the provinces follow a private insurance scheme where private companies provide the cover and they control the premium charges. There are large insurance companies that also provide car insurance to car owners. These insurance schemes are easy to register and are usually applied when buying the vehicle itself. There are numerous websites on the internet that provide the details about each scheme based on your province. The car insurance in various provinces differs by the amount of No-fault insurance implemented.
No-fault insurance is the scheme under which the company pays the money for the damages but does not involve in any litigation for finding who was at fault. This scheme is different to driver-at-fault scheme where the driver at fault is made to pay higher premiums since the insurance company now terms the driver as high risk. This option is very useful in cases where it is hard to find who is at fault or where it cannot be found out. Car insurance is an important area that must be taken care buying a car or any other vehicle. Canadian insurance despite being complex helps out car owners.