We spend a lot of time and energy discussing health insurance and life insurance. What about car insurance? Buying car insurance isn’t really fun, but it is mandatory by the law and important to protect your assets and your finances. However, if you get just the basic coverage mandated by your Province, you might find yourself in a lot of financial trouble if you get hit by an uninsured motorist. Also, if a major accident happens, you might not be covered enough to handle the losses.
Are you Over-insured or Underinsured?
In case of an under-insured policy, you can be in a lot of debt rather than your insurance carrier handling the entire loss of an accident. On the contrary, being over-insured can cost a lot in premiums and ruin your household budgets. The wrong insurance can either waste your money or leave you vulnerable in a worst-case scenario, or even do both. Hence, it is important to go beyond the Cheapest Car Insurance Alberta and find something that matches your needs.
Types of Car Insurance Coverage
The three main types of insurance include liability, comprehensive and collision. These are the basics; coverage that you can’t really afford to drive around without.
This coverage doesn’t really protect you or your car, but it definitely protects your wallet. It covers third-party costs – medical and auto repair that others have sustained due to the accident. Though the mandatory liability coverage is $200,000 in Alberta, it makes sense to have at least $500,000 worth of coverage that encompasses both, bodily injury liability and property damage liability.
If the floods or hail storm have caused a lot of damage to your car and you haven’t been able to repair it out of your pockets, it’s time to opt for comprehensive coverage. This plan covers damage from a fire or natural calamity and also theft. As long as the damage isn’t due to a collision, a comprehensive coverage will pay for the repairs or replacement of your car.
This helps you pay for the damages irrespective of whether you’re in an accident with another car, an object or just with yourself. Liability coverage is only useful if the other person has enough insurance to cover the damages. If not, you’ll be left with a lot of bills to pay. Skipping collision coverage can definitely save money, but it’s a big risk to take. Speak to an insurance broker to understand whether you can really afford to take this risk.
Along with the basic coverage, there are some add-ons you can choose like medical expenses pay, personal injury protection, guaranteed auto protection, uninsured and underinsured motorist, etc. Take a look at your health insurance, the age of your car and your driving record to determine whether you’ll be needing these add-ons. Don’t just look for the cheapest car insurance Alberta, instead, think of what all help and support you will need in case of an accident.
Having the right car insurance can protect yourself, your health, your car and your finances in case of an accident. The coverage options can be overwhelming, especially for a new driver in Canada. It is best to review your needs, understand the various options and then chalk out a policy which suits your requirements the best.