Archive for January, 2010
Automobile Liability Insurance For Your Protection
Drivers of automobiles are required by province law to have automobile liability insurance in every province of Canada. The purpose of this coverage is to cover the cost of damage caused to other vehicles in an auto accident when you are at fault. Every province has its own requirements for the amount of liability insurance that is needed. Some of the province have a low amount of insurance requirement that is required. Some provinces have adjusted the minimum to account for inflation as it applies to medical bills or property damage.
In addition to being required by your province’s laws, liability insurance also protects other properties that you may own. When damage is done or injuries are caused in an accident, if your insurance coverage is found lacking, you can be held personally responsible and your personal property can have liens placed against it. These liens can prevent your from getting a loan or must be satisfied before the property can be sold.
When you purchase liability insurance it the policy is often referred to in three numbers, such as 10/20/10. These numbers would indicate that the policy offers ten thousand dollars in personal injury protection for each person that is involved in the accident with a cap of twenty thousand dollars per accident. Additionally, the coverage would pay up to ten thousand dollars in property damage. While these limits seem low, there are provinces that actually have lower limits.
It is common for a province limits to be lower than the actual amount of insurance than is needed. A good insurance agents can help you to know the correct amount of insurance to protect you other investments.
To find out how much insurance is required in your province you should talk with the Registry of Motor Vehicles (RMV) in the Ministry of Transportation . This department can give you both the amount of required insurance as well as the penalty for allowing your insurance to lapse. Some provinces are requiring that your insurance company make a report to the RMV any time that your insurance lapses at all.
Provinces are finally penalizing persons with more than a slap on the hand for driving without a license. Some provinces will cancel your registration for the lapse in insurance until you can prove that you have insurance and pay an administrative fee. With subsequent incidents the penalties become larger. Some provinces will impound your vehicle for six months and charge you for storage.
If you need to purchase liability insurance, request quotes by using the net. Many companies offer instant quotes for the insurance that you need. Compare the quotes to find the coverage needed for your vehicles and at the best possible price to pay for insurance.
Learning to drive defensively is one of the best ways to lower the price you pay for liability insurance. Defensive driving will keep you from having accidents and will also keep you from having traffic tickets. If you do not already drive defensively, then you should consider taking a defensive driving class to learn some new techniques.
Tags: Automobile Insurance, finance, Insurance, Liability Insurance