Ten types of car insurance Canada for you choose

People living in Canada and having a car or more should get a car insurance in Canada. Because car insurance is very important, it can protect customers against a lot of damages. To get more information about this problem, you should read total this article of us.

Ten types of car insurance Canada for you choose

In the post before, Info Credit Free guided the readers to compare the car insurance quotes in NerdWallet. To get a lot of information about this problem, readers can read the article “Guide people to compare car insurance quotes in the Nerdwallet”.


Like the previous post about the car insurance companies, the post today about the car insurance in Canada includes four parts. They are: “How many kinds of car insurance Canada?”, “Why people need car insurance Canada?”, “How to get the cheap car insurance Canada?” and ” What is car insurance Canada covers?”.

1. How many kinds of car insurance in Canada?

1.1. Liability insurance

This insurance is required by law across Canada. It includes the costs related to the damage caused to another person or vehicle in an accident, including medical bills, lost income, rehabilitation, legal fees and other expenses up to the limit of the policy. As a matter of fact, customers will want to have enough insurance to make a decision against them in a major accident so that the personal property is not threatened.

1.2. Emergency road service

ERS insurance provides customers with roadside assistance in the event of an accident or risk while you are driving. It also includes the cost of getting your car back on the road. These costs may include light mechanical labor, oil or gas distribution, new batteries, booster, tire replacement, locksmith service, or even a tow. With help on the go, ERS is under pressure from the incident.

1.3. Comprehensive insurance

This type of auto insurance covers damage caused by an unrelated accident to a car accident or a car crash. Comprehensive coverage usually includes hazards such as extreme weather, vandalism, falling objects, fire, theft, and floods.

1.4. Collision insurance

Collision insurance covers damage to the vehicle in the event of a vehicle being a rollover or collided with a vehicle or other object. If your car is added, collision insurance will pay for the replacement cost.

1.5. Uninsured motorist coverage

Include costs related to the injury or death after an accident caused by another driver or uninsured or unidentified, as in the case of a crash. Keep in mind that this insurance only pays for damage to the vehicle if the uninsured motorist is also identified.

1.6. Direct compensation property damage 

Only available in New Brunswick, Ontario, Nova Scotia, and Quebec, DCPD insures the vehicle of customers for losses and damages after an accident that you are not fully responsible for. But other drivers must be identified, covered, and found at least partially due to a fault.

1.7. All-perils insurance

Provide protection against all types of danger except for specific exclusions from your policy.

1.8 Accidents benefit coverage

Provide customers with health care services and income replacement benefits if customers are injured in a car accident.

1.9. No-fault insurance

Deal with the own insurance company regardless of who has the fault in the accident. With no-fault insurance, customers do not have to pursue the insurance provider of another driver for compensation. The insurance company will pay the benefits, so the medical bills are covered and you can go back on the road.

1.10. Specified perils

This type of car insurance covers only the hazards that are named in your policy, and it usually includes common hazards such as hail, fire, theft, and windstorms. Specific risks are often purchased as a cheaper alternative to comprehensive insurance.

Ten types of car insurance Canada for you choose

2. Why people need car insurance Canada?

People must have car insurance if owning a car or other vehicle. Car insurance may protect people from:

  • Repair the vehicle or other means if it is damaged or in an accident
  • Everyone is responsible for an accident that damages the car or the injury of another person to another person

Insurance companies can refer to car insurance as property insurance and casualties. Asset and casualty insurance also includes home insurance, business insurance, and disaster insurance.

3. How to get the cheap car insurance Canada?

  • Shop around
  • Buy the right coverage
  • Drive responsibly
  • Pay on time
  • Bundle up
  • Be safe, not sorry
  • Stick with one insurer
  • Take a course
  • Keep driving
  • Look at location
  • Choose the right car
  • Track your driving

4. What is car insurance Canada covers?

If people get into a car crash, their insurance may cover:

  • the driver
  • all passengers
  • other people who are involved

In some states, injured passengers or others involved in the accident have their own insurance policies to file a complaint under their policy first. The driver is the most frequent driver.

Other drivers who drive other cars in the household may use cars as part of their routines, such as driving to work or school. The insurance policy of customers must list additional drivers. If additional drivers have poor driving records, the premiums of customers may increase. Irregular drivers are the only drivers who use the car occasionally.

Nowadays, purchase a car insurance in Canada is not difficult. However, people should consider comparing insurance quotes in order to get the best car insurance company. You can read the previous post about How to get a compare car insurance document from the Nerdwallet? to get more knowledge.

Besides information about travel insurance, home insurance, car insurance… Info Credit Free also offering a lot of posts about personal loans as well as the credit card…

Hillary (Team Content) – Info Credit Free