Consumer Tips: What About Car Insurance?
(NC)-All owners are required by law to insure vehicles driven on public roads. Some provinces and territories offer public insurance while others have insurance sold privately. Here are some basic items to consider when buying vehicle insurance:
- Liability insurance is mandatory, and is used as financial protection against loss or injury caused to others while operating your vehicle. The minimum amount of insurance required differs across jurisdictions but keep in mind that skimping on liability insurance may cost you in the long run. Minimum liability will not cover the cost of an accident resulting in the injury of several people, for example, particularly in circumstances where litigation is an option.
- Vehicle damage insurance, unlike liability insurance, may be optional. Damage insurance, however, is still recommended for the simple reason that damages to a vehicle will quickly add up in the event of an accident where you are at fault. Not being able to recover any money will have serious ramifications on your bank account.
- Some dealers or credit grantors may require that you take out other insurance such as life and/or disability insurance prior to agreeing to do business with you. Make sure that you fully read and understand any agreements that you are asked to sign and that you get a copy of the completed and signed agreement. Do not sign an agreement unless it is completed in full.
You should also do some comparison shopping on insurance prices and coverage prior to signing any agreement. Here are some items to consider in keeping your insurance rates to a minimum:
Sometimes it doesn't pay to be carrying collision or comprehensive insurance on an older vehicle if the total amount you are paying for the deductible plus the monthly premium is more then the entire worth of your vehicle.
Car Insurance DiscountsFor more information regarding auto insurance and other topics on cars and transportation, visit the Canadian Consumer Information Gateway ConsumerInformation.ca The Gateway is a new Web site created by federal, provincial, territorial governments and their partners that brings consumers, objective, reliable and current information.
Trying to save money wherever you can is important to us all. Insurance should be no different. Do not assume that your agent knows .....