Types of car insurance in Canada

Types of car insurance in Canada

Car insurance in Canada is mandatory throughout Canada. Minimum insurance coverage requires bodily injury liability coverage and property damage liability coverage.

What types of car insurance are mandatory in Canada?

Mandatory auto insurance requirements vary slightly from province to province, but in general, all drivers in Canada must have the following coverages:

  • Third Party Liability: This coverage covers bodily and property damage to others in the event of an accident caused by you.
  • Accident insurance: This coverage covers repairing or replacing your car in the event of an accident, regardless of who was responsible.

What types of optional auto insurance are available in Canada?

In addition to mandatory coverage, there are many types of optional auto insurance available in Canada. Some common coverages include:

  • Comprehensive coverage: This coverage covers losses resulting from theft or damage caused by natural phenomena such as fire or flood.
  • Collision with an animal: This coverage covers damage to your car if it is struck by an animal.
  • New Car Replacement: This coverage covers the cost of replacing your car with a new car if it is severely damaged in an accident.
  • Personal Injury: This coverage covers medical expenses and loss of wages if you are injured in a car accident.

What factors affect the cost of car insurance in Canada?

There are many factors that can affect the cost of your car insurance in Canada, including:

  • County you reside in: Car insurance rates vary from county to county. In general, rates are higher in counties with dense populations and high accident rates.
  • Your type of car: Expensive or high-performance cars are usually more expensive to insure.
  • Your driving record: If you have a clean driving record, you will usually pay a lower premium.
  • Your age: Young drivers are usually more expensive to insure than older drivers.
  • Use of your car: If you use your car for work or business purposes, you will typically pay a higher insurance premium.

How do you get car insurance in Canada?

You can get car insurance in Canada through an insurance company or insurance broker. When comparing insurance quotes, it’s important to get quotes from multiple companies and compare coverage and rates.


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