Driving a motor vehicle is a privilege, not a right, and we must respect those we share the road with. As long as there have been motor vehicles, there has been the potential for accidents, and a system of insurance provides the safety net with which all parties are protected.
Do you like the idea of car insurance? It sure would be nice not to have to lay out money every year for it, that’s for sure. So why is car insurance mandatory?
Car Accident Law
In Canada, anyone who operates a vehicle must have it insured. This is compulsory in all provinces and territories; you must always carry paperwork that proves this within your vehicle. If you are not currently using your car to drive, it doesn’t have to be insured, but even for a one-way trip for one time, insurance must be purchased. Failure to have insurance will mean you can be fined, your car can be confiscated, and your license may even be suspended.
To comply with Canadian and provincial law, purchase insurance that meets the minimum requirements in your residence.
Protects You When There Is Bodily Injury
Cars travel at high speeds, and even though there are comprehensive safety features on board to protect you from harm, injuries still occur. Some common injuries from a car accident include:
- Whiplash
- Soft tissue injury
- Bone fractures
- Concussion
- Head injury
- Back injury
Other types of injuries include:
- Herniated discs
- Burns
- Internal injuries
- Spinal cord injuries
- Traumatic brain injury
- Internal bleeding
When there is an auto accident, your car insurance covers bodily injury costs, even for the most basic coverage. This can include immediate emergency care, physical therapy, rehabilitation and prescription medications.
Protects You from Theft
Our cars are one of the biggest purchases we make in life, and although a vehicle isn’t a good investment, it is a necessary transporting appliance we need to get from A to B.
Most vehicles have lots of cargo room hidden in a trunk and within the cabin, and we often carry shopping purchases and other personal items of worth with us. If someone chooses to break into our car, your auto insurance will pay for any damage to the vehicle or loss of personal items.
This is a part of comprehensive auto insurance that you can opt out of, but it is wise to have it for things like:
- Theft
- Floods
- Earthquakes
- Vandalism
- Falling objects
As with most insurance, you hope you never have to use it, but it is great to have it just in case.
Covers the Costs of an Accident
Canadian car insurance covers any damages resulting from a car accident, whether you are at fault or not. While this frees you from paying for repair costs, being at fault may have ramifications later when you renew your license, such as increasing premiums.
Some accidents require your vehicle to be repaired, while other, more serious collisions may result in your vehicle being written off. You will get reimbursed for the loss depending on your insurance plan and vehicle’s previous state and age.
Different Types of Coverage
Some provinces in Canada require you to purchase mandatory coverage through a government insurer, with the option of additional coverage purchased through a private company. Other provinces allow all forms of insurance to be bought through an independent insurer.
These are some of the various types of mandatory and optional insurance coverages that will be on offer, depending on where you live:
Third Party Liability
This covers any injuries sustained by persons involved in the accident. These come with a minimum plus the option to increase the limit as a premium.
Hit and Run Coverage
You will be covered if you have an accident with a hit-and-run driver.
Accidents Benefits Coverage
This is coverage for bodily injury, where rehabilitation, medical care or auxiliary care is required, along with income replacement.
Uninsured Motorist Insurance
For an incident where the other driver has no insurance, this covers any injuries sustained.
Tort Liability Insurance
This provides coverage for personal injury, property damage and legal pursuit.
Accident Forgiveness Coverage
This optional coverage can be purchased for a new driver. It protects new or high-risk drivers from their premiums going up after their first at-fault accident.
This is why car insurance is mandatory. It would be chaos if we didn’t have car insurance, as there would be acts of violence and legal proceedings jamming up the courts to get people to pay for vehicle damage and bodily injury. Love it or not, car insurance is there to protect us, and the cost is a small price to pay for the protection you hope it never has to provide.
