The Different Types of Auto Insurance Coverages You Can Choose

  • All Canadian drivers are required to have mandatory auto insurance in order to operate their vehicles on road. While you can also opt for an optional coverage based on personal needs, a basic insurance coverage if not covered can lead to a severe fine, suspension of license or even vehicle impounding.

    A proper consultation with an Auto Insurance Broker can help you find the right insurance in Alberta, Calgary. However, some of the main categories of auto insurance include: 

    Liability Coverage:

    Legally, one must possess this insurance to be permitted to drive in Canada. Alberta law requires drivers to have liability coverage of minimum $ 200,000, but many drivers take coverage of either $ 1 million or $ 2 million. This covers all the costs incurred by the other party in case of an accident.

    Generally, take enough coverage so that in the case of a court judgment, you won’t need to dip into your savings to cover for medical expenses, legal fees, rehabilitation or other second-party costs.

    Collision Insurance:

    This is an optional insurance that covers for costs of vehicle repair and medical expenses if one is found liable. Normally, this insurance is costlier compared to liability insurance but offers more benefits to the owner/driver in case of an accident. Also, in case your car is totaled, the collision insurance policy will pay the cost of replacement.

    Comprehensive Insurance:

    This insurance covers costs of damages not related to accidents or collisions. It deems useful when hazards are caused due to an act of vandalism, extreme weather conditions, and fire, and theft, objects falling on the car or flooding. Also, it is highly beneficial if you want to tailor your policy based on individual needs or circumstantial assessment.

    Uninsured Motorist Coverage:

    This is a mandatory insurance in Alberta and protects you and your family in case you are killed or injured in a hit-and-run accident or has a collision with an uninsured motorist or car. However, if the driver is identified and uninsured, it will only pay for the damages caused to your vehicle.

    Emergency Road Service:

    You can also opt for a coverage that offers emergency roadside assistance in case of a breakdown or mishap when you’re driving. This plan will cover the costs of getting your vehicle back on the road and can offer peace of mind to drivers in case of breakdowns. Some costs included in the policy are towing, tire changes, oil or gas delivery, locksmith or light mechanical labor.

    Accident Benefits Coverage:

    This is also a mandatory insurance in Alberta and offers medical care to the driver along with additional income replacement advantages if you get badly injured during the car accident.

    No-fault Insurance:

    In this case, you won’t need to deal with the second party’s insurance provider during an accident. No matter who was at fault, your provider will pay your medical bills so that you can get back on the road.

    Speak to a trusted auto insurance broker to chalk down the right plan and coverage for you in the long term.

    Beneficial Insurance Solutions is a Leading broker insurance company In Canada provides Cheap Auto Insurance and Car Insurance Quotes Canada.