Car Insurance Policy – What To Know About Car Insurance Before You Shop


 Car Insurance Policy – What To Know About Car Insurance Before You Shop

Potentially the worst part of owning a car is the cost of auto liability insurance. It's expensive, and if you want to drive legally, you have no choice but to buy it. But just as the old adage goes: “knowledge is power” – and when it comes to getting an affordable car insurance policy, knowledge is key!

This informative blog post will educate readers on what they need to know before purchasing a car insurance policy. It includes tips such as understanding what your state laws are about uninsured drivers and understanding how your credit score may impact your premiums.

While there's no way around it, paying for insurance can be costly. According to the Insurance Bureau of Canada, one in four drivers have had to borrow money to cover costs related to car insurance.

The average Canadian family spends about $11,300 per year on car insurance. When all of the expenses such as rent and mortgage payments are factored in along with utilities, food and clothing, many Canadians simply cannot afford $800 or more in annual auto insurance costs. For those who live paycheck-to-paycheck, consistent and reliable vehicle maintenance is often overlooked due to a lack of funds available.

In many cases, it might be even more affordable to forego car insurance altogether, especially if the vehicle you're driving is worth less than $1,500. At that point, most provinces and the federal government offer a “statutory safey” program for uninsured drivers whereby drivers with clean driving records receive greatly reduced fines and court costs if caught by police driving without car insurance.

Car Insurance Getting You Into Trouble? Get It Dropped!

What is Insuring Against Uninsured Drivers?

Insurance helps protect you against financial losses associated with running into another vehicle while driving your own automobile. In most cases, liability means injury or damage to another vehicle's owner or driver. For example, if you were to drive through the back end of a pickup truck because you forgot to check your blind spot, you'd likely be liable for any damage done to the vehicle's bed or missing tailgate.

The main difference between collision and liability is that collision primarily focuses on the physical damage your own vehicle suffers, whereas liability focuses on other people's vehicles.

Another important thing to know about car insurance is that not all insurance policies are created equal. For example, some policies may cover certain incidents while leaving others out in the cold. This can leave you at the mercy of your insurance provider to decide which policies you can actually use.

Uninsured drivers pose a major threat to the public at large. Studies have shown that up to 40% of Canadians are driving around without insurance, and if the government fines them for this infraction, they would only owe about $500 or $1,000 (depending on their province). The fine is much lower than what it would cost to repair a car or replace it completely. In fact, there have been instances where unlicensed and uninsured drivers have simply abandoned their cars on a highway after hitting a police cruiser and leaving behind the significant damage they caused.

As a result, all provinces and territories have legislation in place to protect the public from uninsured drivers. The amount of the fine varies greatly from province to province and can reach as high as $5,000. However, the fine for not carrying auto insurance is only $500 per offence in some provinces.

It's also important to note that if you are in a car accident due to the action of an uninsured driver, the driver will generally be held liable for all costs associated with the accident. That means you could be on the hook for all of your damages, even if the other party was at fault. In other words, you won't get a chance to negotiate and settle claims with insurance companies after an injury occurs.

Most provinces also have legislation that stipulate what fines uninsured drivers incur if caught by police while driving without car insurance. For example, in British Columbia, a driver caught driving without car insurance would have to pay a minimum fine of $1,150. On top of that they would also have to pay an additional $100 per month for up to five years.

What Not To Do After Accident – Auto Insurance Tips

If you are involved in an accident involving another driver who doesn't have insurance, it's important to stay calm and follow the steps below. Following these steps will help ensure that your claim is paid out fairly and as quickly as possible.

1) Don't admit fault: If you caused the accident, you can still make a claim under your uninsured motorist coverage (if applicable). However, it's important to not admit fault or say anything that may harm your legal rights. It's always better to let the police determine who was responsible for the accident.

2) Don't sign any dotted lines: Even though an insurance adjuster may be present during the exchange between you and the other driver, you should still refrain from signing anything until you know exactly what it means. If the adjuster presents you with a document or contract, ask to have a lawyer review it before signing.

3) Get contact information: If you are able to obtain the name and phone number of the other driver, get it written down. If it was a hit-and-run or no-fault accident, getting the make and model of the vehicle is helpful as well.

4) Obtain police report: In some rare circumstances, police can do a quick investigation and issue a report without investigating further. However, this is usually reserved for accidents where vehicle damage is minor and everyone agrees on what happened. In most cases, police will need to take witness statements to determine who was at fault before they can issue a report.


For those who have a question about uninsured drivers and the implications this has on their insurance coverage, contact us today at 1-855-922-4546. Our team of experts will be able to answer any questions you may have regarding how your insurance company handles uninsured drivers and what they can do for you in the event of an accident. Just let us know what happened and we'll work with you to provide recommendations that help with any auto insurance claims you might have.

Post a Comment

Previous Post Next Post