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Auto insurance and the law
In Canada, it is the law to have auto insurance. Your car insurance
is valid anywhere in Canada and the United States. It’s a good
idea to have available your proof of car insurance with you whenever
you drive because you must produce it if a police officer requests.
If you are found driving without valid auto insurance, you can have
your driver’s licence suspended and your vehicle impounded.
In Canada, each province and territory establishes their own required
minimum insurance coverage. However, you often can get options that
go beyond the basics. One of the nice things about insurance is
that you can customize your policy to make sure that you’ve
got the specific protection you require, without paying for extra
insurance you may not need.
The law does not require that you buy car insurance to cover damages
to your automobile. If you have a newer automobile, however, you’ll
want to protect your investment and consider purchasing Collision
and Comprehensive coverage.
What does auto insurance cover?
Your auto insurance generally provides property, liability and medical
coverage:
Property coverage pays for damage or theft of your car.
Liability coverage pays for your legal responsibility to others
for bodily injury or property damage.
Medical coverage pays for the cost of treating injuries, rehabilitation
and sometimes lost wages and funeral expenses.
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