Guide to auto insurance
Shopping for auto insurance can be a tricky process in Canada. After all, auto insurance rules vary from province to province, but the guiding principle remains the same. Auto insurance policies are designed to protect you on the road against the unexpected, and can even cover damages when you’re not driving.
From protecting you against civil liability, to comprehensive and collision coverage, auto insurance policies offer some much-needed peace of mind to drivers. Comparing car insurance quotes can quickly become time-consuming, however, with YouSet by your side, shopping for auto insurance has never been easier.
Ultimately, working with YouSet rather than a direct company will help you compare auto insurance quotes from different insurers instead of receiving one price, ensuring you get the most affordable coverage.
Here is a complete guide to auto insurance, including what is covered, ways to save money, factors affecting your car insurance quote, and more.
Guide to auto insurance
Shopping for auto insurance can be a tricky process in Canada. After all, auto insurance rules vary from province to province, but the guiding principle remains the same. Auto insurance policies are designed to protect you on the road against the unexpected, and can even cover damages when you’re not driving.
From protecting you against civil liability, to comprehensive and collision coverage, auto insurance policies offer some much-needed peace of mind to drivers. Comparing car insurance quotes can quickly become time-consuming, however, with YouSet by your side, shopping for auto insurance has never been easier.
Ultimately, working with YouSet rather than a direct company will help you compare auto insurance quotes from different insurers instead of receiving one price, ensuring you get the most affordable coverage.
Here is a complete guide to auto insurance, including what is covered, ways to save money, factors affecting your car insurance quote, and more.
What is auto insurance?
Auto insurance is a contract between the driver and the insurance company, protecting a vehicle in case of accident, theft, and potential damage. The driver pays a premium, typically monthly, and in exchange, the insurer will pay out any losses or damages as outlined by their policy.
Auto insurance policies can differ greatly from person to person, and can be customized according to your particular needs. Beyond the standard coverages, including liability insurance, collision and comprehensive coverage, and accident benefits, a number of optional coverage options exist. These can include but are not limited to, roadside assistance and car rental insurance.
Keep in mind, however, that standard coverages included in your insurance policy will depend on which province you are located in. Please be sure to discuss your coverages and exclusions with your broker.
What does auto insurance cover?
Auto insurance policies will differ from province to province, but will ultimately feature certain core coverages. Common auto insurance coverages include but are not limited to, liability insurance, collision and comprehensive coverage, and accident benefits.
Liability insurance
Liability coverage is a mandatory component in any auto insurance policy in Canada and is designed to financially protect you and other drivers involved in an accident when you are at fault. You can submit a claim directly with your insurer when you are at fault. This protection covers damages, injuries, and losses experienced by you or another driver.
Collision coverage
Collision Coverage and Upset Coverage, applies when you hit another vehicle, or object such as a fire hydrant or street light, covering the cost of repair or replacement. This protection also includes upset and can help cover the cost of replacing your car after a collision.
Comprehensive coverage
Comprehensive coverage, as the name suggests, protects your vehicle in any situation, excluding collision or upset, ranging from fire, theft and vandalism to windshield replacement. This insurance is especially useful as it even covers you when you are not driving. For example, if your vehicle incurs weather-related damage, comprehensive coverage has you covered.
Accident benefits
Accident Benefits coverage is not a mandatory coverage in an auto insurance policy. But with this coverage, you and anyone mentioned on your policy are covered for death, dismemberment, and reimbursement of medical expenses in the event of an auto insurance claim.
Road-side assistance
Road-side assistance is an optional coverage you can add to your auto insurance policy and can come in handy when stranded on the road. Whether you have a flat tire, or experiencing engine problems, emergency roadside assistance will be there to safely tow your vehicle or get you back on the road.
Rented or borrowed vehicles
Do you often rent cars and want to be automatically insured via your auto insurance policy? Car Rental Insurance coverage protects you against damage, theft, and liability when driving cars that you do not own!
Is auto insurance mandatory?
Drivers must have a valid auto insurance policy before hitting the road in Canada. Auto insurance policies offer both experienced and inexperienced drivers an additional layer of protection in case of an accident.
Ultimately, with an auto insurance policy, you will not have to pay the full price of repairs – if you are covered by damage to your vehicle in your policy. Instead, you would simply have to pay the deductible you set with your broker! Auto insurance policies can cover you in a wide range of situations, including collision, civil liability, theft, vandalism, and more.
Factors that affect auto insurance premiums
There are a number of factors that go into the calculation of your auto insurance premium. Auto insurers will take into consideration your personal claims and conviction story, your personal details such as age, gender, and driving history, as well as the make, model, and production year of your vehicle.
This is particularly important as it will help your insurer determine the cost to repair your vehicle. Simply put, some vehicle parts are much more expensive than others, and will impact your auto insurance premium.
Your insurance history is yet another significant factor when calculating your auto insurance premium. It goes without saying that if it’s your first auto insurance policy, it will cost more than if you have been insured for several years. Other factors include but are not limited to, your location, and your personal credit score. Insurers, however, will only conduct a soft credit check.
Lastly, the amount and type of usage are additional factors that go into the calculation of your car insurance quote. If you are planning on adding your kids to your policy, consider purchasing an older or lower end model and covering it solely for civil liability as they are just getting started. For young drivers, collision coverage costs the most!
Ways to save money on auto insurance
There are a number of ways to save money on your auto insurance policyand find the best auto insurance quote. From raising your deductible, to installing anti-theft devices, here are a few tips to save money on your auto insurance policy.
Take advantage of multi-car discounts
One of the best ways to save money on auto insurance is to include different drivers and vehicles to your auto insurance policy. Keep in mind that if you are adding an inexperienced driver to your policy, you should expect to pay more to insure them. Generally speaking, however, the more cars you have on your policy, the bigger discount you qualify for.
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Shop around for better car insurance rates
The number one rule when shopping for auto insurance is to never settle for the first auto insurance quote you receive. It is typically recommended to look for various car insurance quotes from different insurers rather than just one, giving you the flexibility to choose. Our automated platform takes care of this for you, comparing auto insurance quotes so you don’t have to.
Increase your deductible
Increasing your deductible is yet another way you can save money on your auto insurance premium. The deductible is the amount you must pay in the event you submit a claim and typically ranges anywhere from $250 to $1000 or more. Please note that you should only increase your deductible to an amount that is financially feasible for you as you must be comfortable paying it in the event of an accident.
Consider your location and car model
Your location as well as the make, model, and year of your vehicle are all important factors in the calculation of your auto insurance quote. In fact, certain cars are more likely to be stolen than others. If you haven’t already purchased your vehicle, consider your car model and your location as it will impact your auto insurance premium.
Consider installing an anti-theft device
Most cars come equipped with an anti-theft device, however, certain alterations can be made to your vehicle to decrease the likelihood of theft. Installing a steering-wheel lock or a GPS tracker on your vehicle, for example, are great ways to protect yourself and ultimately, reduce your auto insurance premium.
Bundle products
Bundling different insurances together, typically home and auto, is among the most effective ways at saving money on your auto insurance policy. By bundling your car and home insurance with YouSet, you can take advantage of multiple discounts and save money on both policies.
Why is auto insurance important?
Auto insurance policies are the best way to protect yourself while on the road and serve a number of crucial functions. For one, auto insurance can help cover repairs to your car or another vehicle if you are involved in an accident. Indeed, accidents happen even to the best of drivers.
Every auto insurance policy also comes equipped with a standard civil liability protection, protecting you against potential lawsuits if you’re deemed responsible for an accident. Auto insurance, ultimately, can be used to avoid significant financial losses due to accidents and protect you in any situation – whether you are driving, or not.
Shopping for auto insurance
Comparing car insurance quotes manually, especially for the first time, can be overwhelming. From understanding the different coverages and factors that affect auto insurance premiums, to speaking with multiple insurers, shopping for auto insurance can become time-consuming – and quickly!
That’s why YouSet created its automated platform powered by thousands of different algorithms to help you find the best auto insurance coverage. With YouSet by your side, the process of shopping for auto insurance is completely transparent, our smart technology unlocks exclusive rates and personalized discounts in less than four minutes.
We hope we have answered all your questions about auto insurance, including what is covered, ways to save money, and its importance, but if we didn’t, YouSet offers personalized support via chat, SMS, or email.
Shopping for auto insurance