Understanding the Basics of Car Insurance Coverage
Accidents on the road can strike anytime without warning. Since it is impossible to predict when bad luck puts us in an inconvenient situation, having a car insurance can protect us from the substantial amount of financial and legal troubles. A car insurance is one of the most important legal requirements in Canada. While there are various forms of car insurance coverage, choosing the right level of coverage provides financial protection in case of vehicle damage and accident.
Choosing the Right Car Insurance Coverage
When choosing the right car insurance coverage, select one with minimum liability and a property damage coverage. When you get into an accident without liability coverage, you could face various legal problems and penalties, including medical bills and other expenses from the damages incurred during the accident.
The liability coverage also protects other drivers, passengers, and pedestrians from the bodily injuries, pain, and suffering. If you were in a car accident and found to be the party at fault, you could be held personally responsible for the total medical expenses of the injured party or major monetary award if the person was killed during the accident. This is not only a serious financial burden, but it can also cause emotional and mental distress to the injured party and their family.
Property damage coverage, on the other hand, provides financial coverage for the damaged property. Take for example, hitting or damaging other person’s car or damage city property, such as guard rail or traffic sign. The property damage coverage will pay these damages depending on the limit listed on your policy.
Other Important Coverage
Since road accidents can potentially happen at any time, no matter how careful you are, getting a car insurance also helps protect your well-being and property, too. Purchasing a physical damage insurance protects us from major costs of car repairs if your vehicle gets badly damaged and other external factors that caused damage to your car.
Here are other important car insurance coverages you should get:
- Comprehensive Coverage – This type of insurance coverage pays for physical damages that are not the result of a collision. Comprehensive car insurance coverage includes payout to glass damage, theft, vandalism, fire, and storm damage.
- Collision Coverage – It is an optional coverage that covers the repair and replacement of your car. Collision coverage can be expensive, but you can save premiums by choosing a $500 or higher deductible.
- Loss of Use Coverage – It provides you with a replacement vehicle or pay for the transportation costs or rental car while your vehicle is currently repaired due to a collision or other claim for insurance, like theft.
As a car owner, it is important to be careful in driving as much as possible. Car maintenance also helps ensure optimal performance. If you’re in the area, bringing your car to a reliable auto centre for regular brake service in Abbotsford is a great way to prevent road accidents. Ignoring car maintenance could definitely put you and other people’s safety at risk.