If you decide to rent your car to someone who is not on your policy and that person has an accident. This could affect your own insurance record and increase your premium. Car insurance in Canada 2023
Who Is Covered by Auto Insurance
If you are involved in a car accident, you may be covered by your insurance. If you have your own insurance policy, you must first make a claim under that policy.
The primary driver is the person who drives the car most often.
An additional driver is another driver who can use the car as part of their daily routine within the household. B. Drive to school or work. The insurance policy must list the additional driver.
Insurance premiums may increase if the additional driver has a bad driver’s license.
A driver who uses the car only occasionally.
Auto Insurance Coverage
Coverage is the maximum amount an insurance company will pay you if you make a claim for an insured loss or accident.
Compulsory Insurance
Canadian provinces and territories require drivers to have compulsory insurance. Some states may require more coverage than others.
Third-Party Insurance
Third-Party Insurance covers injury, death, or other damage your vehicle inflicts on others. It also covers damage your vehicle causes to other vehicles.
If the cost of loss or damage exceeds the limit of liability, you must pay the balance of the settlement yourself.
Compulsory automobile liability insurance does not cover the cost of repairing your own vehicle. Additional insurance may need to be considered to cover these costs.
Accident Benefits/Personal Injury Insurance
Accident Benefits cover your medical expenses and loss of income in the event of a motor vehicle accident.
In Quebec, you automatically have personal accident insurance.
Benefits are paid as part of driver’s license registration. No need to buy an extra cover for this.
Additional Insurance Coverage
Auto insurance may also provide additional benefits.
Collision Insurance
Collision insurance covers the cost of repairing or replacing your vehicle if it collides with another vehicle or object. This may be included in compulsory insurance.
Ask your insurance company what coverage your policy provides.
Collision Damage Waiver
The Collision Damage Waiver covers the cost of repairing or replacing your vehicle due to other damage or loss.
Vandalism
Windshield Damage
Theft
The Collision Damage Waiver does not cover loss or damage to your vehicle if you collide with another vehicle or property in a collision.
Ask your insurance company what coverage your policy provides.
Voluntary Insurance
Depending on your driver’s license, you may not be able to purchase all types of voluntary insurance.
You can purchase additional insurance to cover risks not covered by basic insurance. Insurance companies call this a tab or approval. You pay extra for that.
Additional coverage may be required, such as:
Rent a car or use another mode of transport while the car is being repaired
Repair the rental car
Emergency Roadside Assistance
Collision Waiver (prevents cancellation of insurance after the first accident)
Paid for the car Ask the
insurance company, who has increased depreciation to get full value, what your policy does and does not cover.
Ask about risks that require additional coverage.
What auto insurance doesn’t cover For example, if a thief stole golf clubs, clothing, or personal electronic devices from your car. This damage is usually covered by home insurance.
Check your home insurance policy to see if it covers the theft of personal items from your vehicle.
Read your car insurance policy carefully.
Make sure you always understand what it does and what it doesn’t do. Store it in a safe and accessible place. Please refer to it as necessary.
Auto Insurance Claim Options
Your insurance company will review your claim and determine how to resolve the claim.
When making a claim, you are always responsible for paying the overage. The amount you get from your claim depends on your insurance benefits.
Please note that deductibles may reduce the amount you can recover from a claim.
Repair or Replacement
Your insurance company will cover the cost of repairing or restoring your vehicle to the same condition it was in before the damage.
Betterment
Your insurance company will only pay for returning your car to the same condition it was in before the accident. If your vehicle requires additional repairs to anything that was damage prior to the accident, you are responsible for paying the additional cost of those improvements to your vehicle. If the cost is higher than the value of the car before the damage, the insurance company may choose to write off the car instead of fixing it. Insurance companies offer cash payments based on the car’s pre-damage value. Car insurance in Canada 2023
Auto Loan Receivables Settlement
If you have an auto loan, auto insurance usually includes a payer clause.
Loss-payer clauses make the lender the beneficiary. In the event of car loss or damage, the insurance company will pay the lender (beneficiary) up to the balance of the car loan upon making a claim.
If you make a claim, your insurance company may, at its discretion,
give you money if you make a claim for repairs after you have provided receipts proving that you made the repairs. I can. Car insurance in Canada 2023