Auto Insurance

What Is Auto Insurance?

Auto insurance is a legal and financial agreement that protects you if you're involved in a car accident or experience damage, theft, or liability involving your vehicle. It ensures you can cover costs such as repairs, medical expenses, property damage, or lawsuits resulting from a collision.

Policies in Canada are regulated provincially and typically include mandatory coverage such as liability and accident benefits, with optional add-ons like collision or comprehensive insurance. Understanding your options helps ensure you're covered where it matters most.

Why Is Auto Insurance Important?

Auto insurance is not just required by law, it's a key part of financial planning and personal safety. Without the right protection, a single accident could result in thousands of dollars in out-of-pocket costs or legal issues.

From daily commuting to weekend road trips, having the right auto insurance coverage gives you peace of mind every time you get behind the wheel. It can also provide rental car reimbursement, roadside assistance, or protection from uninsured drivers.

The benefits of auto insurance for you

• Meet legal requirements: Drive with confidence knowing you're properly insured.

• Protect against financial loss: Avoid out-of-pocket costs for damages or liability.

• Cover vehicle repairs: Get help paying for damages caused by accidents or natural events.

• Stay mobile after accidents: Use rental reimbursement to stay on the road.

• Get support during claims: Access professional help when you need to file or negotiate a claim.

Explore the Different Types of Auto Insurance

The articles below break down the features, benefits, costs, and key considerations of each auto insurance option available in Canada:

Liability Coverage

• What Is Auto Liability Insurance and Why Is It Mandatory?: Learn why liability insurance is required and how it protects you and others on the road.
• What’s the Difference Between Bodily Injury and Property Damage Liability?: Understand how liability is split between physical injuries and damage to vehicles or property.
• How Much Liability Coverage Do You Really Need?: Discover how to assess your risks and determine the right amount of protection.
• What Happens If You Cause an Accident Without Enough Liability Insurance?: Learn the consequences of being underinsured during a claim.
• Can Liability Insurance Cover Legal Costs and Settlements?: Explore how liability insurance can pay for court fees, lawyer bills, and negotiated settlements.
• How Is Auto Liability Insurance Priced in Canada?: Get a breakdown of what influences your premiums based on location, age, and driving history.

Collision Coverage

• What Is Collision Coverage and What Does It Protect You From?: Understand how this coverage pays for damage to your vehicle from traffic-related accidents.
• When Should You Consider Dropping Collision Coverage?: Learn when it might make financial sense to remove this coverage from your policy.
• How Does Collision Insurance Work If You’re Not at Fault?: Discover how claims are handled when the other driver is responsible.
• Does Collision Coverage Pay for a Totalled Vehicle?: Find out how your insurer determines vehicle value and pays for total losses.
• What Deductible Should You Choose for Collision Insurance?: Explore how to balance premium savings with out-of-pocket risk.
• How Much Does Collision Coverage Add to Your Auto Insurance Premium?: See typical cost increases and what affects your pricing.

Comprehensive Coverage

• What Is Comprehensive Auto Insurance and What Does It Cover?: Learn how this policy protects against non-collision events like theft, fire, and vandalism.
• Is Comprehensive Coverage Worth It for Older Vehicles?: Discover how to evaluate your vehicle’s value and decide if this protection is necessary.
• What’s the Difference Between Collision and Comprehensive Coverage?: Compare the scope of events each type of coverage includes.
• How Are Glass and Weather Damages Handled Under Comprehensive?: Understand how broken windshields and hail damage are typically covered.
• Can you File a Comprehensive Claim without Affecting your Rates?: Learn how insurers treat claims and when your premiums may change.

Uninsured Motorist Coverage

• What Is Uninsured Motorist Coverage and Why Does It Matter?: Understand how this protection covers you when another driver lacks insurance.
• What Happens If You’re Hit by an Uninsured Driver?: Explore the compensation process for injuries and vehicle damage.
• Does Uninsured Motorist Insurance Cover Hit-and-Run Accidents?: Learn how this policy can protect you even when the driver flees the scene.
• How Much Coverage Should You Carry for Uninsured Drivers?: Get tips for setting limits that protect you without overpaying.
• Is Uninsured Motorist Coverage Required in Canada?: See where this coverage is mandatory and when it’s optional.
• What’s the Difference Between Underinsured and Uninsured Coverage?: Compare how these two protections address coverage shortfalls and gaps.

Specified Perils Coverage

• What Is Specified Perils Coverage in Auto Insurance?: Learn how this limited policy protects against specific events only.
• What Events Are Covered Under Specified Perils?: Discover which risks—like fire or theft—are typically listed in your policy.
• How Does Specified Perils Compare to Comprehensive Coverage?: See how the cost and coverage options differ between these two.
• When Should You Choose Specified Perils Over Comprehensive?: Understand when this stripped-down protection might be a smart fit.
• Can You Customize the Perils You Want Covered?: Find out whether policies allow flexibility in selecting covered events.
• Is Specified Perils Coverage Right for Seasonal or Stored Vehicles?: Explore how this option can save money when your car isn’t used year-round.

Loss of Use Coverage

• What Is Loss of Use Coverage in Auto Insurance?: Learn how this optional coverage helps pay for a rental car or alternative transport.
• What Does Loss of Use Cover After an Accident or Theft?: Understand when and how your policy steps in to help with mobility costs.
• How Do Reimbursement Limits Work for Rental Vehicles?: See how much your policy will cover daily and in total.
• When Should You Add Loss of Use Coverage to Your Policy?: Get tips on deciding if this add-on makes sense for your needs.
• How Long Does Loss of Use Coverage Last After a Claim?: Understand the time limits and conditions that affect benefit duration.