Auto insurance has become an imperative aspect of safeguarding your life and your vehicle. Many uncertainties can impact your car along with your life. Hence, auto insurance becomes essential.
Indeed, there are insurance policies for possibly everything. Auto insurance is insurance taken to protect the driver and vehicle. Auto insurance may also secure passengers, pedestrians, and the property involved in the accident. In a nutshell, ensuring your vehicle is a smart move to safeguard your interests and get that peace of mind. In Canada, you will find many insurance providers that offer efficient auto insurance plans. Click here to check out the best insurance site in Ottawa.
Auto Insurance Is Mandatory Than An Option
While auto insurance becomes an option for people in many countries, in Canada, it is required by all who drive. This insurance will be covering the driver, vehicle, passengers, pedestrians, and even the property.
It is important to understand that vehicle insurance is regulated by different provinces. However, the Financial Services Commission of Ontario is a regulatory agency under the Ministry of Finance that regulates and looks after insurances, including auto insurance.
Every vehicle owner needs to buy auto insurance in order to drive on the roads of Canada. You need to choose the best insurance provider in your province and get yourself promising auto insurance. The Insurance Bureau of Canada is responsible for the representation of Canadian insurance companies.
The minimum civil insurance is $50,000, but you can increase the amount according to your preference. It is always better to increase the insurance amount in order to protect your financial interests in case of accidents.
Different Rules For Different Provinces
Even though there is one governing body that looks after the insurance, there are different rules for all provinces. Some provinces do not have public auto insurance, and property damage and physical damage are covered by private companies. Some provinces may cover both public and private insurance companies.
If you are new to a province, it would be better to check the rules and regulations before jumping into chaos. There are stringent rules regarding auto insurance regulations; you must be completely aware of what you are getting into before making a decision.
Auto Insurance Is Changing
There have been a few changes in the auto insurance regulations that you must be aware of. It is mandatory to buy a standard auto insurance policy to drive in Canadian provinces. The changes made to the auto insurance regulations are aimed to make them affordable and feature-rich.
When it comes to renewing auto insurances taken on or after June 1, 2016, all the standard auto insurance will get new benefits. You need to act quickly and connect with your insurance provider to get your optional coverage.
FSCO has recommended all the customers keep a few things in mind to get the most of the new changes. Here are the four things to know your right and understand what you are getting into:
Read All The Changes In Your Policy: When you renew your insurance, there will be a document with the package. You need to read that document thoroughly without missing a line. Check if there are any changes that reduce or eliminate some important aspect of your insurance. If there are any inconvenient changes in the insurance policy, you must consult your insurance provider right away.
Compare The New Policy With Your Current One: When you purchase a new policy, it is important to compare it with your current policy. This way, you can see what changes are present in the new policy. It is important to note that if you are availing of benefits from your employer or another policy, you will get coverage for the changes made to the policy. You should consider all the benefits when you are reviewing the new policy and its coverage options.
Understand Your Policy: It might be pretty challenging to understand your policy and its changes in the first instance. But you must understand your policy thoroughly. For this, you must consult your insurance company and ask your doubts and queries. You can also do some additional reading to learn more about the policy. Make sure that you are aware of all the options that will increase your benefits; only then can you make the most of the insurance policy.
Look For The Best Insurance Company: You must not trust an insurance company just like that. It is important to shop around and filter through a few names before making a decision. There are plenty of insurance companies in your province that will be fighting over prices and shares. You must compare the quotes of at least three providers. It is important to look for a licensed insurance agent or company to save on your auto insurance and get the best benefits.
What Remains Consistent In The Standard Insurance Policy?
There are a few things that will remain unchanged. That means the policies will continue to cover:
- Third party liability
- Uninsured automobile
- Direct compensation of property damage
- Accident benefits
If you have taken optional benefits with your policy, you must check the plan. There might be some changes in your benefit with the new options.
What Will Be The Major Changes?
Whether you buy a new policy or renew your old one, here are the changes that are added to accident benefits:
|Current Policy||New Policy|
|Medical and Rehabilitation for non-catastrophic injuries||$50,000||
Benefits are combined and reduced to $65,000
|Attendant Care for non-catastrophic injuries||$36,000|
|Medical and Rehabilitation for catastrophic injuries||$1,000,000||
Benefits are combined and reduced to $1,000,000
|Attendant Care for catastrophic injuries||$1,000,000|
The Bottom Line
Auto insurance is not mandatory in many countries, but Canada has emphasized making it necessary. All drivers need to take auto insurance. It is an excellent initiative to prioritize the need for vehicle insurance. With the Financial Services Commission of Ontario’s help, all the auto insurance-related processes in different provinces are running smoothly.