Every car driver needs valid car insurance when commuting in Canada. With so many choices of coverage and companies, it pays to be diligent while searching for the right auto insurance policy. On the surface, car insurance might look the same, but one size doesn’t fit all. You need to research and understand your needs before buying your policy. Being over-covered or under-covered is one of the most common mistakes made by policyholders. Read on to know more about the mistakes you can avoid before you look for a car insurance quote.
1. Picking the Wrong Level of Cover
There are two kinds of coverage you can buy – one that offers minimum coverage and is cheaper, and the second that offers extensive coverage but costs a little extra.
Third-party Liability Coverage – This insurance plan covers damages caused to the other party in case of an accident. However, it does not cover any medical expenses or damages caused to your own vehicle. This a mandatory insurance in Canada and helps you pay for bodily injury and property damage caused to someone else during an accident.
Comprehensive Coverage – You can add this along with liability coverage to your policy. It helps to pay for any damages caused to your car in an accident or because of a natural calamity or theft. It is a wholesome protection but it can cost more on your premiums.
2. Forgoing Optional Coverage
If you’re trying to save on your premiums, you might be tempted to only buy the minimum insurance as required by your province. However, when you’re on the road, everyone might not have even the minimum required insurance. This means that if you’re hit by an uninsured motorist, you’ll run out of luck when you file a claim. When you select uninsured and underinsured motorist coverage in your policy, it might bump your premium costs a little, but it will give you extra peace of mind when driving on the road.
3. Not Opting for Add-ons
In an attempt to save money, many car owners tend to skip all the add-ons offered by an insurance company. Sometimes, the add-ons are available at affordable prices, and they can be highly beneficial in the future. Things like road-side assistance, engine protector, towing facility, hydrostatic cover, etc. don’t cost much but can be a boon in times of an emergency.
4. Not Knowing Your Policy
Sometimes, car owners are unaware of what is insured and what is not in their auto insurance policy. This can be disastrous when you need to file a claim and realize you’re underinsured and don’t even have the funds to pay for necessary damages. Ask all the important questions to your broker, agent or insurance company before you sign the papers and read the terms and condition to avoid any disappointments or financial troubles later.
Before you search for auto insurance quotes, it’s always a good idea to understand the different types of coverages, analyze what you need and only then select your policy. Remember those small additions to your premium costs can save you from potentially expensive surprises in the long run.