Archive for April, 2009
First Time Car Buyers: Car Insurance Options For Canadian Drivers
car insurance
The Basic Requirements
The first thing you need to know is what you are required to have. All of the provinces and states require basic liability coverage for their drivers. This is coverage that will pay for damage you cause to someone else or his or her property. For instance, if you are involved in a car accident where you are the at-fault driver, your liability coverage would pay the medical bills and car repair bills for the other people involved in the accident. This is a common requirement in other countries.
Canadian drivers must carry an addition coverage option, because when it comes to car insurance, Canada requires Accident Benefits/Bodily Injury coverage. This coverage will take care of your medical care and any loss of income you experience after a crash, even if you are the one at fault for the injuries. In other words, if you are involved in a motor vehicle accident and no one else is liable for your injuries, this coverage will cover them.
Other Options to Consider
While you are required to have Liability and Accident Benefits/Bodily Injury coverage to drive in Canada, you may wish to have additional coverage. Neither of these Canada insurance options covers damage to your vehicle that is not caused by another vehicle or driver. They also do not cover damage to your vehicle that you caused. Natural causes are also not covered. If a tree branch fell on your car and smashed in the roof, you would be stuck paying for the repair or buying a new car without any car insurance coverage.
If you have a loan on your car, the bank will not be willing to take this risk. You will probably be forced to purchase additional car insurance for as long as you have the loan. The two additional policies that you may have to purchase if you have a loan are Collision and Comprehensive.
Damage to your car in a motor vehicle accident, even if you are completely at fault, would be covered in a Collision policy. In fact, even if you drive the vehicle into something that is not a vehicle, you would be covered with a Collision policy.
Comprehensive insurance covers non-motor-vehicle damage to your car. If your car were stolen, vandalized, or harmed by a natural disaster, this coverage would pay for the damages. That tree branch that fell on your car and smashed the roof would be an event covered by comprehensive coverage.
Considerations When Buying Coverage
When buying insurance coverage, you have to strike a delicate balance between affordable premiums and proper coverage. Some people buy too much insurance, and they end up paying more for their insurance coverage than is worthwhile when compared to the value of their car. Others buy too little insurance and end up with huge bills when they are in an accident.
How can you best determine this balance? You need to know what your car is worth. Check the Blue Book value of the car, and then compare it to the amount you are paying in premiums. If you find that you are paying close to the value in premiums over two or three years, you may wish to drop a coverage option. Put the additional money aside into a savings account, and use that money towards repairs if you end up having an accident. If you do not have an accident, use that money as a down payment on your next car purchase, rather spending thousands on auto insurance that will only provide a few hundred dollars for y
Tags: Canadian driver, Car Insurance, finance, law, legal
Tips on Keeping Your Auto Insurance Rates Down
Auto insurance can be quite expensive, especially when you want the right coverage. That is why it is very important that you do what you can to keep your auto insurance rates down. There are ways that you can do it and save yourself hundreds of dollars per year. Why would you want to keep your CAA Car Insurance rates down? You want to keep your rates down so that you can keep more money in your pocket.
There are so many ways that you can use to keep your auto insurance rates down and some of them you can use at the same time as other discounts to maximize your savings.
Here are some things that you can ask your auto insurance company for:
• Ask if you can receive a discount if you have more than one type of insurance with their company. For instance, you may find that you can have your auto insurance and your homeowner’s insurance with this company and they will provide you with a combined discount. Carry all of your insurance policies with them, such as auto, home, and life and you may find that you can get even more money off.
• If the driver of the car is a student or is listed as a driver on the car, you may find that you can get a good student discount. This is where the student maintains at least a B average on their report card. You may be required to take that report card to the insurance company each time it comes out, but it really pays off. If grades go down, the discount may disappear until the grades go back up.
• See if there are any safe driver discounts available. When you haven’t had a ticket or an accident, you may find that there are discounts available for you.
• If you are a senior citizen and you’ve not had any accidents in a specific amount of time, there may be discounts available to you.
• You can always raise your deductible to reduce your premium. However, you need to keep in mind that doing so will result in a higher out-of-pocket expense if an accident does occur. The standard deductible is $500, but some individuals will go as high as $2,000 to save some money on their premium. If you can pay $2,000 if an accident occurs, then that will work fine. Just make sure your deductible is not higher than what you can afford in case damage is done to your car and you need to pay it.
• You may wish to shop around. You may find a company that offers the same coverage for a lower price. You always want to compare before you make a commitment.
You want to use all of these tips so that you can save yourself quite a bit of money.
Tags: auto insurance, finance, rates
Adding Roadside Assistance to Your Car Insurance
Roadside Assistance is great way to provide security for you and your family. You never know when you may blow out a tire or your battery will go dead. Many people are now adding roadside assistance coverage to their car insurance packages.
There are a number of benefits to adding roadside assistance to a car insurance policy. The following list contains the advantages of adding roadside assistance to your car insurance package:
Value: Many insurance companies will offer lower premiums if you add roadside assistance to your insurance policy. One emergency response could result in the coverage paying for itself. For instance, the cost of one tow can be much more expensive than the insurance premium. It is better to pay a little extra each month instead of hundreds of dollars all at once.
Roadside Assistance Contact: If you have a problem with your vehicle, contacting a technician is as easy as pulling out a card and dialing. You don’t have to call directory information or search through the yellow pages. Response is usually quick.
Towing Service: If your car breaks down on the side of the road, roadside assistance will cover your towing costs. It will also cover the costs of towing your car to a qualified and certified mechanic shop.
Flat Tire: If you have a flat tire, a service technician will come out, remove the tire, and install the spare
Lost or Stolen Keys: If you lose or have your keys stolen, or locked them in the car, a professional will come out and help recover them or provide you with a new set of keys.
Battery Boost: A battery that goes dead is a very common occurrence. This could be due to the cold or leaving the lights on. If your battery dies, someone will be sent out to jump it for you.
Emergency Fuel and Fluid Delivery: If you your gas tank is empty or you require another type of vehicle fluid, a technician will bring a replacement to you. In most cases the delivery service is free with the roadside assistance package. You may have to pay for the cost of the fluid.
Medical and Trauma Assistance: If you are in a serious car accent, having roadside assistance with an insurance package can provide coverage for such services as towing to the nearest approved vehicle yard after an accident, road or air ambulance service, care for stranded children, transfer to the most appropriate medical facility, lifesaving medication or blood transfer, and trauma support.
Different items or events are covered under roadside assistance. Conditions may apply in certain emergency assistant situations. When searching for the appropriate roadside package to go with your auto insurance policy, you should find out such information as the maximum financial benefits you can receive each year, the financial limitations, the costs not covered in the policy, and the number of times you can request assistance.
Tags: Car Insurance, finance, Roadside Assistance