Buying a new car may provide a great sense of accomplishment, but it is essential to remember the requirements that come along with it. One of these is that you must have valid auto insurance. This can protect you in the unfortunate event of an accident and also help you cover the expenses for any damage. As a leading auto insurance agency, we often get people asking whether it is mandatory to have car insurance. Read on to learn more about the importance of having your vehicle insured.
Before discussing why you must have vehicle insurance, let us look at what it covers and the various types of coverage available.
Who Does an Auto Insurance Policy Cover?
Your car insurance may offer cover for the following in case you get involved in an accident:
- The driver and all passengers
- Other people who may be involved
Auto Insurance Coverage
- Mandatory Coverage
Although the total cost of coverage may vary, Canadian provinces require drivers to have auto insurance coverage.
- Liability Insurance
Liability insurance covers losses such as injury and the cost of damage caused to other vehicles. These expenses will be covered until the extent of your liability limit.
- Accident Benefits
It helps to have accident benefits because they cover the cost of your medical fees as well as the loss of income due to being involved in a car accident.
- Additional Insurance
In the case of vandalism or theft, comprehensive insurance can help you cover the costs involved. Similarly, collision insurance covers the expenses of repairs required as a result of an accident.
Importance of Auto Insurance
- Protect Yourself and the Passengers
According to the experts in auto insurance agencies, having your vehicle insured will help protect both you and your passengers in case of an accident. It will help you cover the cost of any hospital visits and medical expenses.
- Protect Your Finances
In case of a car accident, you may be held responsible for the expenses associated with it. These costs may include the medical payments of the injured person or persons, legal fees, or any compensation. If you have liability coverage, it may help you pay for these expenses.
- Protect Your Vehicle
It helps to have comprehensive coverage and collision coverage on your car insurance policy. It can help you pay for any repairs or get your vehicle fixed without spending money from your pocket. It also comes handy in case of replacement if your vehicle gets stolen.
- Satisfy Lease or Loan Requirements
If you’re leasing or financing your vehicle, your lender may have specific requirements, including purchasing comprehensive and collision coverage. This will protect their interests as the lienholder of your vehicle.
- Comply with the Law
Each province’s laws require you to have, at minimum, auto liability coverage. It helps to have an auto insurance policy that offers more cover than the recommended minimum amount. This will help you avoid paying from your pocket for expenses incurred due to an accident.
We Can Help You Get an Auto Insurance Quote
Orr & Associates is a leading auto insurance agency known for providing reliable advice and accurate solutions. We have experienced and knowledgeable insurance brokers who can understand your needs and come up with suitable answers.