This entry was posted on Wednesday, September 16th, 2009 at 12:48 am and is filed under Car insurance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
September 16, 2009
In Canada, the law requires all licensed drivers to have an auto insurance. But the rates consumers are charged depend on a wide variety of variables, all of which are assessed independently by every auto insurance company. Auto insurance companies look at your driving profile, which includes things like the make and model of car you drive, your age, your gender, where you live, the number of tickets and accidents on your record, etc. and use that information to assess the risk of you making a claim in the future and set its rates.
Several Canadian provinces (British Columbia, Saskatchewan, Manitoba and Quebec) provide a public auto insurance system while in the rest of the country insurance is provided privately. Basic auto insurance is mandatory throughout Canada with each province’s government determining which benefits are included as minimum required auto insurance coverage and which benefits are options available for those seeking additional coverage. Accident benefits coverage is mandatory everywhere except for Newfoundland and Labrador. All provinces in Canada have some form of no-fault insurance available to accident victims. The difference from province to province is the extent to which tort or no-fault is emphasized. Typically, coverage against loss of or damage to the driver’s own vehicle is optional – one notable exception to this is in Saskatchewan, where SGI provides collision coverage (less than a $700 deductible, such as a collision damage waiver) as part of its basic auto insurance policy. In Saskatchewan, residents have the option to have their auto insurance through a tort system but less than 0.5% of the population have taken this option.
There are also differences across Canada in terms of how the auto insurance industry is administered and regulated depending on the province. In British Columbia, Manitoba, and Saskatchewan, auto insurance is administered by the government. In Ontario, Alberta, Nova Scotia, New Brunswick, Prince Edward Island and all other provinces except Quebec, auto insurance is administered by the private sector and a large number of private insurers. Finally, Quebec has a hybrid model; the government insures against injuries to people, and private insurers cover you for property damage.
Car insurance is most commonly distributed to consumers through a network of licensed insurance brokers who act as intermediaries between the insurance company and the consumer. They provide independent and expert advice, advocacy and support to consumers with respect to their car insurance needs and typically work with a small number of different insurance companies. Car insurance is also made available to consumers through captive agents who have access to the rates of just one insurance company. Finally, insurance can also be purchased directly from an insurance company through a website or call center (these companies are most commonly known as “direct writers”).
Some Canadian provinces (British Columbia, Saskatchewan, Manitoba and Quebec) provide public auto insurance system while in the rest of the country insurance is provided privately. Basic auto insurance is obligatory across Canada with every province’s government determining which benefits are included as minimum required to auto insurance coverage and which benefits are optionally available for those who require additional coverage. Accident benefits coverage is obligatory everywhere except for Newfoundland and Labrador. Every provinces in Canada have some form of no-fault insurance available to accident victims. The difference between each province is that the extent to which tort or no-fault is emphasized. Basically, coverage against losses or damages to the driver’s own vehicle is optional – one notable exception to this is in Saskatchewan, where SGI provides collision coverage (less than a $700 deductible, such as a collision damage waiver) as part of its basic insurance coverage policy. In Saskatchewan, residents have the option to have their auto insurance through a tort system but less than 0.5% of the population have taken this option.
Your car insurance generally covers you when renting a car in the U.S. and or Canada. In fact, both countries usually recognize the same liability, comprehensive and collision coverage limits to your current policy (less the deductibles, of course).
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