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Insurance for your car can be very confusing to purchase because there are so many different coverage’s available from basic required by law to extras you may wish to include. Insurance for automobiles is regulated by the government, thus every insurance company will of course have standard or basic coverage. On the other hand, once you get past the basic or standard coverage, insurance companies vary quite a bit. The most important thing to remember about automobile insurance is once you are past the required insurance you have all kinds of options regarding what you want to cover. You can customize your car insurance to fit your desires as well as ensure you have the protection you need instead of paying for all kinds of extras that you do not necessarily need or want.

You can also ad other vehicles to your car insurance policy such as snowmobiles, motorcycles, motor homes, ATV’s, trailers, and sport bikes.

Laws Governing Car Insurance except in Quebec

Third Party Liability Coverage and Basic Accident Benefits Coverage in the amount of $200,000 must be carried by law. When you buy auto insurance, you will receive a pink card. This is your Motor Vehicle Liability Insurance Card. This shows that you have insurance on your car and that you are protected in the United States and Canada.

This pink card should be carried with you at all times or left in the glove compartment of your vehicle. A police officer will ask to see your proof of insurance if you are ever stopped. If you do not have this proof, you will be given a ticket. At the time of registering your car, you will need to bring the proof with you to the Ministry of Transportation and each year when you renew your license plate.

Remember, the pink card will only cover you in the United States and Canada, if you drive to Mexico you will not be covered. You will have to find insurance in Mexico right after you cross the border.

How much auto insurance should I have?

As stated above, the law states, you must carry $200,000 in Third Party Liability. This type of insurance will only cover another person’s injuries and another person’s property if you are the driver found at fault in a car accident.

In most cases, serious accident see damages quite a bit over the $200,000 mark and can reach costs of $1,000,000 or higher. You will have to pay for any costs that your insurance does not cover if you the driver at fault in the accident.

In Canada, all provinces have to purchase accidents benefits coverage for personal injuries that may stop a person from going back to work, except in Quebec. This type of coverage will pay for your medical expenses that are not covered by your health care plans along with income until you return to work.

There is no law that will make you carry insurance to cover your car. If you have a new car, you may wish to protect it especially if you are still making payments. If you wish to protect your vehicle this type of insurance is called collision and/or comprehensive coverage. In most cases, if you have a new car the note carrier will require you to carry this type of insurance to protect them against loss.

What is the Automobile Insurance Deductible?

An automobile insurance deductible is the amount you have to pay before your insurance company will pay the rest of the amount of damages. In most cases, this is a small amount, which determines the amount you will pay monthly. The higher your deductible the less you will pay monthly.