Planning on purchasing for you and your family but don’t know which car insurance plans will suit your needs the best? It can be hard to choose especially if you don’t know how each policy works. Here are some of the most popular Canadian auto insurance plans on offer –

Comprehensive Coverage

This type of auto insurance can come in handy if your vehicle sustains damage that isn’t related to the way it operates or how you drive it. In other words, it can help you cover instances of vandalism. For example, if someone slashes your tires or scratches the paint with a key, comprehensive coverage will make it possible for you to cover the damages. The same principle will apply if your vehicle is damaged due to a flying object while it is parked. The policy considers such situations as uncontrollable occurrences and does not hold the insured liable for damages during such situations.

Collision Insurance

As the name implies, collision insurance insures your vehicle against collisions with other vehicle or objects. The price of this particular type of auto insurance depends on the following factors –

1. Your age
2. Province
3. The type of car you drive
4. Your driving record

The make, year and specifications of the car have a huge impact on the price as well. The more expensive your car is, the more will you have to pay for the policy. After all, expensive cars have expensive parts. You never know which ones you might need to replace in case of a hit and run.

Of course, your insurance company will also require you to pay more if you have a history of collisions under your belt. Insurance companies consider individuals such as these as high risk policy holders. The situation will also increase your personal quotations. Likewise, you pay less if you have fewer collisions on your record.

Mandatory Insurance

Your mandatory insurance will also depend on your provincial government. Liability is the only mandatory insurance coverage on vehicles in Canada. This includes –

• Loss
• Injury
• Death
• Property damage

This type of insurance insures drivers against any financial loss due to collisions. For example, the expenditures may include medical expenses that incur due to a car accident. In addition, the liability also protects you against any loss of income incurred due to injury while driving. For example, let’s say that you suffered an accident while you were driving and broke your leg. You can hardly drive with a broken limb. In addition, you also sustained other injuries that make it impossible for you to come to work. Any salary deductions that ensue while you recuperate are covered if you are insured with this policy. You can opt for this type of insurance policy even if the accident in question is your fault.

Remember, each of the policies mentioned above varies in price and coverage. Insurance companies offer a variety of competitive rates but its best that you shop around for the price and coverage that suits your needs the best.