Auto insurance FAQ

Even if you know the basics of car insurance, we know there are probably still a few questions you may have. Check out our FAQ’s below.

Do I really need auto insurance?

Yes – in Canada, it’s the law: your vehicle has to be insured. The exact requirements vary from province to province, but every jurisdiction mandates a minimum amount of liability insurance. Most drivers should invest in a broad spectrum of insurance, not just liability, so that they’re protected in the event of unexpected, unavoidable scenarios, like an accident, fire, or theft. After all, bad things can happen to anyone.

What is no-fault insurance?

A type of insurance system used by providers in several provinces, like Ontario and Alberta. Under the no-fault insurance system, you skip the hassle of pursuing the at-fault driver’s insurer to get compensation. Instead, your own provider pays out your benefits, which usually means you get quicker and more convenient service.

But who’s at fault in an accident still matters. If you’re found at fault, that verdict goes on your record and your insurer could raise your premiums.

What is an auto insurance deductible?

The amount of money that you must pay out of pocket to cover damages. Your insurance provider will pay for all covered costs beyond your deductible. For example, if your policy has a $500 deductible, you would pay the first $500 of your claim, and your insurance company would pay the rest, up to a pre-determined maximum amount.

So, naturally, your deductible impacts your car insurance rate. When you commit to a higher deductible, your provider doesn’t have to contribute as much money to your claims. As a result, your premium lowers.

How do providers determine insurance premiums?

They evaluate a long list of variables, including your age, commute, and driving record. Insurers also consider the make, model, horsepower rating, and safety features of your vehicle before calculating your rate.

Try our auto insurance comparison service if you want to shop for the lowest rates. Just plug your information into our quoter -- even though insurers have access to all the same info, you’ll notice that each one offers a slightly different rate.