Car insurance is a protection you must purchase if you own a car or other vehicle. It protects you in case of an accident. Car insurance may protect you from:
having to pay to repair your car or other vehicle after an accident
liability claims if you’re responsible for an accident causing damage
Insurance companies may refer to car insurance as property and casualty insurance. Property and casualty insurance also includes home insurance, business insurance and disaster insurance.
If someone who isn't on your policy has an accident with your car, your own premiums may increase.
Who your car insurance policy covers
If you get into a car accident, your insurance may cover:
the driver
all passengers
other people involved in the accident
In some provinces, injured passengers or other people involved in the accident must make a claim with their own insurance first.
If you have additional drivers, you must list their names in your insurance policy. Additional drivers include other drivers in your household who may use your car. For example, to drive to school or work. If they have a poor driving record, your premiums may increase.
Car insurance policy coverage
Coverage is the maximum amount of money your insurance company will pay you if you make a claim. Ask your insurance company what coverage your policy provides.
Liability insurance
Liability insurance covers losses, such as injury or death that your vehicle causes to other people. It also covers damage your vehicle causes to other vehicles. You may need to pay the balance of the settlement yourself. For example, if the cost of the loss or damage is higher than your liability limit.
Liability insurance doesn’t cover the cost of repairs to your own vehicle. You may need to consider additional insurance to cover these costs.
Accident benefits
Accident benefits cover the cost of your own medical expenses and loss of income following a car accident.
Quebec residents are covered for injury or death by Quebec’s public automobile insurance plan. Premiums are part of your driver’s licence registration.
Additional insurance coverage
Your car insurance policy may also provide you with additional benefits.
Collision insurance
Collision insurance covers the cost of repairing or replacing your car if you hit another car or object. Insurance companies may include it in your mandatory insurance coverage.
Comprehensive insurance
Comprehensive insurance covers the cost of repairing or replacing your car due to other types of damage or loss. This may include:
vandalism
damage to your windshield
theft
Comprehensive insurance doesn't cover certain loss or damage to your car. For example, if you hit another car or object in a collision.
