Auto insurance is required by law across Canada. It covers the owner/driver, passengers, pedestrians, and property involved in a vehicle collision. It also provides protection against liability that could arise from incidents in a vehicle. Policies cover cars, trucks, motorcycles, and other road vehicles.

Yes. You are required by law to have car insurance if you own a car or other vehicle. Auto insurance may protect you from having to pay for repairs to your vehicle or another if it’s damaged or in an accident. It can also protect you from liability claims if you’re held responsible for an accident-causing damage to another person’s vehicle or injury to other people. It’s important to remember, however, if you decide to lend your vehicle to someone who isn’t listed on your insurance policy and they have an accident, your own insurance record may be affected, and your premiums could increase.

Canadian provinces and territories require drivers to have mandatory coverage, but some require more than others. Public auto insurance provides a one-size-fits-all solution with, for example, fixed deductibles and no multi-vehicle discounts. Private insurers, on the other hand, compete to offer the lowest rates, strong service delivery and a wider range of coverage options.

The government runs the auto insurance system in British Columbia, Saskatchewan, and Manitoba. In those provinces, residents usually have the option to buy additional coverage from their public insurer or from a private insurer of their choice. In Quebec, the public insurer manages the insurance regime for bodily injuries only, while property damage coverage is provided by private insurers.

The table below illustrates insurance requirements across Canada:

Coverage is the maximum amount of money the insurance company will pay you if you make a claim for a loss or an event covered by your policy. It can vary between provinces.

All provinces – except for Nova Scotia and Quebec – require you have at least $200,000 in third party liability coverage and accident benefits. Some provinces require direct compensation property damage, while others don’t. Only Alberta does not require uninsured automobile protection.

It’s useful to familiarize yourself with insurance terms and the different types of coverage available to you:

Third Party Liability - Liability insurance is mandatory across Canada and is the basis for all plans. It covers damage caused to another vehicle or person in a crash. It gives you compensation for medical bills, legal fees, and other related costs.

Accident Benefits - This form of protection is required across the country. It provides you with financial assistance if you are injured in an automobile accident. It doesn’t matter who is at fault. It helps to supplement medical costs not covered under your provincial health care plan. This includes things such as rehabilitation, attendant care, and even income replacement.

Direct Property Compensation Damage (DCPD) - DCPD is available in several provinces. It covers damage to your automobile, its contents and loss of use where another driver is at fault. It is only applicable in provinces where the coverage is mandated.

Uninsured motorist – This is protection against uninsured or unidentified drivers. It is mandatory in all provinces except Alberta. This covers you if you’re injured or killed by an uninsured motorist. It also applies if you’re the victim of a hit and run.

Collision - This optional coverage pays for damage to your vehicle caused by upset or a collision with another object. It would apply, for example, if you lost control of your vehicle on an icy road and hit a guardrail.

Comprehensive - Optional comprehensive insurance protects you against damage or loss because of non-driving events. This includes things such as high winds that cause flying debris to damage your car, falling trees, weather, theft, vandalism, and more. It includes all perils, except for collision, or damage caused by theft by a person residing with you or who repairs your car.

All Perils – This optional coverage covers all causes of loss except those directly mentioned as exclusions in your policy. It also covers loss or damage in the event your vehicle is stolen or damaged by an additional driver or someone in your household.

Specified Perils – This pays only for losses caused by perils specifically listed in your policy. These perils include such things as: fire, theft or attempted theft, lightning, hail, rising water, earthquake, windstorms, an explosion, riot, or civil disturbance, the falling or forced landing of an aircraft or its parts, the stranding, sinking, burning, derailment or collision of any kind of transport where a described vehicle is being carried on land or water.

Roadside Assistance - Emergency roadside assistance provides you with help if your vehicle breaks down or has mechanical issues. This includes boosting the battery, tire changes, locksmith services, towing, and more.

Optional coverages - Depending on your driving record, you may not be eligible for all types of optional insurance. You can buy extra insurance to pay for risks not covered in your basic policy. Called a rider or an endorsement, you may pay extra for this.

You might want to consider it if you’d need additional coverage for such things as renting a car, repairing a rental car, emergency roadside assistance, collision forgiveness (this keeps your premium from increasing for your first at-fault accident) and a waiver of depreciation to ensure you receive the full value of what you paid for your vehicle.

Most policies don’t cover the loss of personal possessions, such when a thief steals golf clubs, clothing, or personal electronics from your vehicle. Your home or tenant’s insurance usually covers these losses. Read your car insurance policy carefully and understand what it does and does not cover. Keep it in a safe and accessible place.

When setting the premium for your vehicle insurance companies consider many variables. Where you live, your age, gender, driving record, claim history are all factors. Your vehicle’s make, model, and year, how much you use your car, the type of coverage you choose and the amount of your deductible (the amount you agree to pay before your insurer pays the rest) are also considered.

Every vehicle owner’s coverage needs are different. But one thing is certain - with the Easyinsure.ca online advantage you’ll get the right coverage at the right price and be able to manage your policy when it’s convenient for you. How easy is that!