Auto Insurance FAQs: Edmonton’s Auto Insurance Questions, Answered!
Before you buy an auto insurance policy, you need to know the basics of auto insurance. A simple understanding of some common FAQs when it comes to car insurance will be a great help when it comes time to make your decision.
In Canada, who decides how auto insurance works?
Car insurance policies in Canada vary from one province to another. Each province sets its own minimum requirement for insurance policy. In British Columbia, Saskatchewan, and Manitoba, for instance, the government-owned insurer provides the basic requirement. But the government and private insurance providers both compete for the additional coverage.
In Alberta, Yukon, Northwest Territories, Nunavut, Ontario, Newfoundland, New Brunswick, Nova Scotia, and Prince Edward Island, every driver need car insurance, but the car insurance policy is provided by private insurers. In these provinces, you will find various private auto insurers competing in the market for the best quote and coverage.
What does a no-fault insurance policy means?
Contrary to its name, having no fault insurance doesn’t mean you are acquitted from paying the claim. In no-fault insurance, you, the insurer, may receive the penalty, which is a raise in premium, even though you are not completely at fault.
However, you have to keep in mind that many auto insurance companies are lenient. Because of this, you don’t have to expect an increase on your premium on your first offense.
If someone has borrowed my car, what becomes of my insurance?
If a friend borrowed your car and unfortunately meets an accident, the sad thing is your auto insurance premium has to cover for it. If you are holding a no-fault insurance policy, the fault points would still go to your provider. Before you lend your car, you can ask your friend if he or she can ask for a “27 endorsement” from the insurance provider. The “27 endorsement” would pay for the damage instead of having your own insurance company pay for any damage.
Knowing the frequently asked questions about car insurance is very important. In this way, you will have an idea on how to find the best auto insurance coverage.
Being aware of the FAQs about auto insurance policies would also help you choose best auto insurance.