Auto Insurance FAQ wants to make it as easy as possible for you to insure your motor vehicle – whether it is a car, truck, station wagon or van.

Even after learning the basics of car insurance, we know that there may be questions you are still likely to have. Check our FAQ section to find the information you need to choose the right car insurance policy.

Do I really need auto insurance?

Yes – in Canada, it is the law to have your vehicle insured. Although the exact requirements vary from province to province, every jurisdiction mandates some minimum amount of liability insurance so that you’ll be able to provide for damages should you injure or kill someone with your car. Although liability insurance is the most critical type of coverage, drivers of all ages and skill levels would be well advised to purchase a broad spectrum of insurance for their vehicle to protect them from some unforeseen adverse event like an accident, fire or theft. After all, bad things can happen to anyone!

What is no-fault insurance?

No-fault insurance is offered by providers in several provinces across the country. No-fault policies allow you to deal with your own insurance company regardless of which party is at fault in an accident. Put plainly, you won’t have the hassle of pursuing the other driver’s insurer to get compensation if that driver is at fault; instead, your own insurance provider will pay out your benefits, offering you quicker and more convenient service.

However, be aware, that it still ultimately matters who is at fault in an accident; if you are deemed to be at fault it will be recorded on your insurance record and your premiums will likely increase.

What is an auto insurance deductible?

A deductible is the amount of money that you must pay out of pocket to cover damages before your insurance kicks in. 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 the insurance company would pay the remainder, up to a pre-determined maximum amount.

Your deductible helps to determine your overall car insurance rate, and paying a higher deductible will lower your annual insurance premiums because you’ll be personally absorbing more of the cost of any claim you make.

How do providers determine insurance premiums?

There are a variety of criteria that insurance providers consider when determining your rates. Your age, driving history and record will all play into how much your insurance will cost. Insurers also take your vehicle into consideration when determining how much to charge you, with factors such as the make, model, horsepower rating and safety features of your car all being part of the final calculation. offers an auto insurance comparison service that can help you find out exactly how much you will be paying on your new auto insurance plan. With this service, you’ll save time and money by quickly getting the right plan for your needs at the lowest rate possible.