Understanding Full Coverage Car Insurance
What Is Full Coverage?
In Canada, “full coverage” generally refers to a combination of different types of car insurance that together provide extensive protection. It typically includes:
- Liability Insurance: Mandatory in all provinces, this covers damages to other people and their property if you’re at fault in an accident. It includes bodily injury and property damage liability.
- Collision Insurance: This optional coverage pays for repairs or replacement of your vehicle if it’s damaged in a collision, regardless of who is at fault.
- Comprehensive Insurance: Another optional coverage, comprehensive insurance covers non-collision-related damage to your vehicle, such as theft, vandalism, fire, or natural disasters.
- Uninsured Motorist Protection: This coverage protects you if you’re involved in an accident with a driver who doesn’t have insurance or in hit-and-run situations.
- Accident Benefits: Also mandatory, this coverage provides compensation for medical expenses, lost income, and other costs if you’re injured in an accident, regardless of fault.
Why Full Coverage?
Full coverage car insurance is recommended for drivers who want peace of mind and financial protection in the event of an accident or other damage to their vehicle. It is especially important for new or expensive cars, as the cost of repairs or replacement can be significant.
Factors Affecting Car Insurance Costs in Canada
Provincial Regulations
One of the most significant factors influencing car insurance premiums in Canada is the province in which you live. Each province has its own insurance regulations, coverage requirements, and average premium costs.
- Ontario: Known for having the highest car insurance premiums in Canada, Ontario’s costs are driven by factors such as a large number of claims and high fraud rates. The province requires all drivers to have liability insurance, accident benefits, uninsured motorist coverage, and direct compensation property damage (DCPD).
- Quebec: Quebec has the lowest car insurance premiums in Canada, thanks to its public auto insurance system, which covers bodily injury claims. Drivers only need to purchase private insurance for property damage and optional coverages like collision and comprehensive.
- British Columbia: Car insurance in British Columbia is provided through the public Insurance Corporation of British Columbia (ICBC), which offers basic coverage. Drivers can purchase additional optional coverage, such as collision and comprehensive, through ICBC or private insurers.
- Alberta: Alberta has a mix of private and public insurance, with a cap on minor injury claims that helps keep premiums lower. The province mandates liability insurance, accident benefits, and uninsured motorist coverage.
Personal Factors
Several personal factors also influence car insurance premiums, including:
- Age: Younger drivers typically face higher premiums due to their lack of experience and higher risk of accidents.
- Driving Record: A clean driving record with no accidents or traffic violations can lead to lower premiums, while a history of accidents or violations can increase costs.
- Vehicle Type: The make, model, and age of your vehicle affect insurance rates. More expensive or high-performance vehicles usually cost more to insure.
- Location: Urban areas with higher traffic and accident rates generally have higher insurance premiums than rural areas.
- Usage: How often and for what purposes you use your vehicle (e.g., commuting, pleasure) can impact your insurance costs.
- Credit Score: In some provinces, insurers may consider your credit score when determining premiums, as it is seen as an indicator of financial responsibility.
Tips for Finding Inexpensive Full Coverage Car Insurance
Shop Around and Compare Quotes
The most effective way to find inexpensive full coverage car insurance is to shop around and compare quotes from multiple insurers. Different companies assess risk differently, and premiums can vary significantly. Online comparison tools can make this process easier by allowing you to enter your information once and receive quotes from several insurers.
Consider Usage-Based Insurance
Usage-based insurance (UBI) programs, also known as telematics or pay-as-you-drive insurance, offer a way to lower premiums by tracking your driving habits. These programs use a device installed in your car or a mobile app to monitor factors like speed, braking, and distance driven. Safe drivers who don’t drive frequently may qualify for substantial discounts.
Increase Your Deductible
Raising your deductible, which is the amount you pay out-of-pocket before your insurance kicks in, can significantly lower your premiums. However, it’s important to ensure that you can afford the higher deductible if you need to make a claim.
Bundle Insurance Policies
Many insurance companies offer discounts if you bundle multiple policies, such as car and home insurance, with the same provider. Bundling can lead to substantial savings, making full coverage more affordable.
Maintain a Clean Driving Record
Your driving record is one of the most important factors in determining your insurance premiums. Avoiding accidents and traffic violations can help keep your premiums low. Some insurers also offer accident forgiveness programs, which prevent your rates from increasing after your first at-fault accident.
Take Advantage of Discounts
Many insurers offer various discounts that can help reduce your premiums. These may include:
- Multi-vehicle Discount: If you insure more than one vehicle with the same company, you may qualify for a discount.
- Good Driver Discount: Drivers with a clean driving record may be eligible for discounts.
- Loyalty Discount: Some insurers offer discounts for long-term customers.
- Safety Features Discount: Vehicles equipped with safety features like anti-lock brakes, airbags, and anti-theft systems may qualify for lower premiums.
- Low Mileage Discount: If you drive less than the average number of kilometers per year, you may qualify for a discount.
Consider Dropping Unnecessary Coverage
If your vehicle is older and has depreciated in value, you may want to consider dropping collision or comprehensive coverage to save on premiums. However, it’s important to weigh the potential savings against the risk of paying for repairs or replacement out-of-pocket.
Improve Your Credit Score
In provinces where credit scores are considered, maintaining a good credit score can help lower your insurance premiums. Pay your bills on time, keep credit card balances low, and avoid opening new accounts unnecessarily to improve your credit score.
Drive a Low-Risk Vehicle
Insurance premiums are partly based on the make and model of your vehicle. Cars that are less expensive to repair, have better safety ratings, or are less likely to be stolen generally cost less to insure. When purchasing a new vehicle, consider its insurance costs in addition to the purchase price.
Comparing Full Coverage Insurance Providers in Canada
Major Insurance Providers
Canada has a diverse insurance market, with several major providers offering full coverage car insurance. Some of the most popular insurers include:
- Intact Insurance: One of the largest providers in Canada, Intact offers a range of coverage options, including full coverage packages. They provide discounts for bundling, loyalty, and safe driving.
- Desjardins Insurance: Known for competitive rates and strong customer service, Desjardins offers full coverage options with customizable features. They also offer discounts for multi-policy holders and safe drivers.
- TD Insurance: TD Insurance offers a variety of full coverage options, with discounts available for bundling, safe driving, and loyalty. They also provide a usage-based insurance program called TD MyAdvantage.
- Belairdirect: Belairdirect offers full coverage car insurance with a focus on digital services and convenience. They offer discounts for bundling and safe driving, as well as a telematics program called Automerit.
- Allstate Insurance: Allstate provides full coverage options with a wide range of discounts, including for safe driving, multi-policy holders, and students. They also offer accident forgiveness and claims-free rewards.
Regional Providers
In addition to national insurers, there are several regional providers that may offer competitive rates for full coverage car insurance. These include:
- The Co-operators: A Canadian-owned cooperative, The Co-operators offers full coverage options with a focus on customer service and community involvement. They provide discounts for bundling and safe driving.
- Wawanesa Insurance: Wawanesa is a mutual insurance company that offers full coverage options in several provinces, including Ontario, Quebec, and the Prairies. They are known for competitive rates and strong customer service.
- SSQ Insurance: SSQ offers full coverage car insurance with customizable options and discounts for bundling, loyalty, and safe driving. They are particularly popular in Quebec.
The Role of Public Auto Insurance Systems
In some provinces, such as British Columbia, Manitoba, and Saskatchewan, public auto insurance systems play a significant role in the market. These systems provide basic coverage, with drivers able to purchase additional coverage, such as collision and comprehensive, through either the public provider or private insurers.
British Columbia
In British Columbia, the Insurance Corporation of British Columbia (ICBC) provides mandatory basic coverage, including third-party liability, accident benefits, and underinsured motorist protection. Drivers can purchase optional additional coverage, such as collision and comprehensive, through ICBC or private insurers.
Manitoba
Manitoba Public Insurance (MPI) provides mandatory basic coverage, including liability, accident benefits, and uninsured motorist coverage. Drivers can purchase optional additional coverage, such as collision and comprehensive, through MPI or private insurers.
Saskatchewan
Saskatchewan Government Insurance (SGI) provides mandatory basic coverage, including liability, accident benefits, and uninsured motorist coverage
