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Canadian auto insurance companyInsurance is financial protection given by an insurance company to an individual and his family against loss or harm for which it charges a premium. Auto insurance protects against cost of repairing or replacing vehicle. It also secures the persons financial future. There are about 214 private general insurance companies operating in Canada. Government owned auto insurers in British Columbia, Manitoba and Saskatchewan provide the mandatory auto insurance coverage. Every province and territory legally requires persons to have auto insurance, while provincial legislation determines the insurance providers and the legal minimum insurance amount. Marriage, divorce or widowhood and crossing 50 years of age affect auto insurance coverage by affecting the rate and options available. The insurance rate is unaffected whether or not the vehicle is financed.
Insurer or insurance carrier is the company or individual providing insurance. Insurance companies set insurance policies either through salaried or commissioned employees or through independent brokers or agents. Individuals licensed to sell insurance may represent several insurance agencies or companies. Insurance companies are legally bound to provide clients with the broker or agent's name. Auto insurance is available for different persons such as students, teenagers. One can also insure pimped out cars, trucks, motor cycles and rental cars. Granting discounts to students with an excellent academic performance is an encouraging policy followed by several auto insurance companies.
In Canada, if a person wishes to use a vehicle, it is necessary to have a minimum amount of auto insurance coverage, which may be purchased under the provincial plan or from an independent auto insurance company. Insurance Bureau of Canada (IBC) has initiated a public education campaign to educate persons about road safety. IBC reported 10% to 15% of household, automobile, and commercial insurance claims to be fraudulent. About 15% of insurance premium goes towards covering fraudulent insurance claims. Identification cards (IDs) are legally mandatory in most states of the US as these are evidence of insurance in case of accident or traffic stop.
Insurance Services Office (ISO) is an organization of Property and Liability Insurance business. It compiles statistics, effects rates and creates policy forms.
Insurance companies mostly offer two types of plans Standard & Preferred. Preferred plans are offered to drivers with good driving records and their rates are lower and have more coverage. Insurance companies have underwriters to assess risks, fix premiums and accept or reject applications for insurance. The Certificate of Automobile Insurance mentions the coverage chosen by a person. Companies that provide auto insurance also insure Recreational Vehicle (RV). By including home insurance, the package can be quite economical. Insurance companies also protect against third party liability.
In March 2005, Ontario became Canada•s first province and the first region in North America to enact breed specific legislation banning pit bulls. There is a no-fault car insurance system in Ontario, whereby every claimant goes to his respective insurance company, regardless of who is at fault, to claim benefits. Insurance companies use the Fault Determination Rules to assess each drivers fault in the accident. These rules are set under the Insurance Act and are different from charges laid by the police under the Highway Traffic Act.
Standard Canadian insurance companies recognize both American and Canadian driving and insurance experience. All car insurance policies are identical except for the fees that companies charge. Amount paid as car insurance is not related to claims satisfaction or stability of the insurance company. If the vehicle owner is a high-risk applicant and is unable to get insurance in the regular market, then he obtains insurance from the state-assigned risk plan, under which every insurance company is obligated to accept a specific number of high-risk applicants.
The six common types of auto insurance coverages are:
• Bodily injury liability is for injuries the policyholder causes to someone else.
• Property damage liability covers the damage that a policyholder may cause to someone elses property.
• Collision liability covers damage to the policyholder's car from a collision.
• Comprehensive coverage helps cover damages to an automobile from accidents or events other than those mentioned under collision coverage. They may include damage from hail, flood, fire, vandalism or theft.
• Medical payments or Personal Injury Protection (PIP) covers treatment of injuries to the driver and passengers of the policyholder's car.
• Uninsured motorists coverage covers the costs resulting from an accident involving a hit-and-run driver or a driver who does not have insurance.
The four types of auto insurance coverage applicable to all vehicles are: All perils, which combines the coverage provided by Collision and Comprehensive insurance; Specified perils, which protects only against situations such as theft or attempted theft, some natural disasters, riots or civil disturbances; Collision; and Comprehensive.
Buying auto insurance is a good practice that is beneficial to both the insured person and his family as it ensures financial security and mental peace.
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