| How Canadian Car Insurance Laws Work |
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| Written by Mike Shannon |
| Sunday, 17 April 2011 10:42 |
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Getting behind the wheel of a car means you are going to be taking certain risks. One of those risks is the chance of an accident. Accidents are called an accident for a reason - you do not mean for it to happen and they can't be prevented in some cases. But the fact remains that they can and will happen, sadly. An auto accident occurs every thirteen minutes in Canada, causing hundreds of thousands of dollars in damages every year. Because of these alarming figures, laws in all provinces in Canada require drivers to carry auto insurance on their vehicles at all times.
Getting behind the wheel of a car means you are going to be taking certain risks. One of those risks is the chance of an accident. Accidents are called an accident for a reason - you do not mean for it to happen and they can't be prevented in some cases. But the fact remains that they can and will happen, sadly. An auto accident occurs every thirteen minutes in Canada, causing hundreds of thousands of dollars in damages every year. Because of these alarming figures, laws in all provinces in Canada require drivers to carry auto insurance on their vehicles at all times. The Insurance Bureau of Canada requires all drivers to carry minimum amounts of coverage to help cover the costs associated with an accident, which, without coverage, would be monies you are responsible for paying out of pocket. Chances are good that you do not have a few thousand dollars lying around to cover these costs. The amounts of coverage required to legally drive a car vary according to the province that you live in. Most often the amount that must be carried is for Liability only. This means that the damages you sustain after an accident are not covered! Coverage of at least two-hundred thousand dollars in Third-Party Liability is the norm for all provinces in Canada, with the exception of Quebec, which requires only $50,000 in coverage. This liability coverage pays for both bodily injury and property damage. If both a claim for bodily injury and property damage are both filed, payment for property damage is limited to twenty thousand dollars in the provinces of Newfoundland, New Brunswick and the Yukon. All other provinces in Canada, with the exception of Quebec, are limited to just $10,000. Medical coverage is also required to be carried in all provinces. Medical coverage pays for your own medical bills after an accident. Coverage amounts vary by province. Of course those who wish to protect their self in an accident have the option of adding additional coverage as well. Collision, comprehensive, and uninsured motorists are three types of additional choices you have to protect yourself. Keep in mind that it is against the law to operate a vehicle without the required coverage amounts in place. Fines, suspension of your driving privileges, suspension of your vehicle registration, and even jail time can be given to those who are caught without insurance. Proof of coverage must be carried in your vehicle at all times, and presented upon request after an accident or any time a law enforcement officer requests it. Proof is most often a Pink card given to drivers upon enrolment of insurance on their vehicles. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Mike Shannon works as a freelance writer for various companies. He contributes to a number of Canadian websites with articles about cars and travel such as car insurance companies and the best way to find a auto insurance calculator in Canada. |