Auto Insurance - a Requirement for Drivers
You must have automobile insurance to legally drive
a motor vehicle in Canada. If you rent a car, the rental
company will offer you a short-term policy. But if you
purchase your own car, you will need to buy an automobile
insurance policy.
Your insurance policy covers you for expenses such
as medical treatment and care, possible legal costs,
property damage and lost wages if you’re involved
in an accident. Every province and territory in Canada
has its own requirements regarding the minimum amount
of insurance coverage you must have. You may want to
purchase more than the minimum, to ensure that you are
adequately protected from the financial costs of injury
or damage to yourself, another person or property.
Where to Buy Auto Insurance
In some provinces (B.C., Manitoba, Quebec and Saskatchewan),
auto insurance is provided by a government-run insurance
company. You purchase insurance directly from that organization.
In other provinces and territories, insurance is
purchased from licensed insurance brokers or agents,
credit unions and banks — including RBC.
Your Insurance Options
No matter what kind of vehicle you are insuring you
can choose various levels of coverage, depending on
how much protection you want.
The coverage you choose will be shown on your Certificate
of Automobile Insurance. On all vehicles, you can choose
from the following four types of auto insurance coverage:
- Collision coverage protects your
vehicle against damage caused by impact with another
vehicle or an object such as a guard rail.
- Comprehensive coverage protects
your vehicle from unexpected situations such as fire,
theft, vandalism or natural disasters.
- All perils insurance combines
the coverage provided by Collision and Comprehensive
insurance.
- Specified perils protects your
vehicle only against specific dangers, such as theft
or attempted theft, some natural disasters, riots
or civil disturbances.
The Cost of Auto Insurance
The cost of auto insurance (“the premium”),
is calculated for each individual, based on the probability
of making a claim. Your premium may be influenced by
a number of factors, depending on the province you live
in. These may include:
- Where you live
- Your age
- The make and model of your car
- Your driving record in Canada
- Your insurance claim record
- Your level of driving experience
- Whether you drive your vehicle to work
Reducing Your Insurance Costs
As a new driver in Canada, your insurance costs may
be quite high at first. Monthly insurance payments can
sometimes be as much as your monthly car loan payments.
You should keep this in mind when budgeting for a car.
If you haven’t yet bought your car, you might
consider choosing a make or model that would trigger
a lower premium. Your RBC Insurance advisor will be
happy to provide you with some estimates.
Another way to save money is by building a good driving
history that is free of accidents and convictions. While
this can take a while, it will help to reduce your insurance
premiums.
Enrolling in a recognized driver training program may
also qualify you or the new drivers in your family for
a discount. Be sure to talk to your RBC Insurance advisor
before registering.
Whatever the cost, obtaining adequate insurance is
important to protect you and your family financially
in case of an accident.
TIP: Always carry your proof
of insurance when you drive.
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