How Much Auto Insurance Do I Really Need?

While each province has minimum requirements for auto insurance, there are many different types of optional coverages that you can add to your policy for added protection and peace of mind. Before you decide to add optional coverages to your policy, it is important to consider how much insurance coverage you really need. First, check your province’s minimum insurance requirements as it’s quite possible that the minimum coverage required will satisfy your needs. Learn more about the standard components of an auto insurance policy below as well as how much coverage you should have for each.

Third-Party Liability

Third-party liability provides coverage that is required to operate a vehicle in all provinces, it covers any damage or loss you do to other people, their property, and vehicles when you’re found at fault in an accident.

Accident Benefits

Accident benefits serve the purpose of covering you and your passengers’ medical expenses following an accident, regardless of who was at fault. If you lose time at work due to your injuries, this policy may also cover lost wages. Accident benefits cover the costs that exceed provincial healthcare. 

Direct Compensation Property Damage 

Direct Compensation Property Damage (DCPD) saves you from having to pay out of pocket for damage to your vehicle and/or the contents of your vehicle when you’re deemed not at fault in an accident.

Uninsured Motorist Coverage

Uninsured motorist coverage helps cover expenses in the event you are hit by an uninsured driver or are involved in a hit-and-run. This will protect you from the financial burden of having to pay for these costs out of pocket. Uninsured motorist coverage will help cover the costs that your health insurance won’t.

Collision and Comprehensive Coverage

Collision and comprehensive coverage are optional. Collision coverage covers the costs of repairs to your car following an accident where comprehensive coverage takes care of costs if your car is stolen or damaged outside of an accident. These policies are worth having if you’d want to repair or replace your car following an accident. Be aware that these policies have a deductible (the amount you have to pay out-of-pocket before coverage kicks in), and they pay out according to the current value of your car, not what you initially paid for it.

We hope that this guide has given you enough information and advice for you to make a confident decision on the plan you should get for your insurance needs. We offer comprehensive and tailored insurance solutions and we can provide the same for you, contact Rowat Insurance today to get a free quote.

ROWAT INSURANCE

Insuring Ontario and Quebec since 1955. Trust Rowat Insurance Brokers to look after your home, auto, business and life insurance needs. We always guarantee fast, friendly service and highly competitive premiums. As brokers, we are entirely independent from Insurers and Financial Institutions; we will work with you to analyze and advise on risk, and customize the coverage that is right for you.