Auto Insurance in Canada
Auto insurance has become an indispensable part of modern life. In fact, auto insurance is mandatory in many countries. Auto insurance is also known as vehicle insurance, which can be purchased for trucks, cars, and motorcycles. The primary purpose of auto insurance is to protect drivers against physical damage and bodily injuries that may result from traffic collisions. Auto insurance also provides protection against liabilities that may result from traffic collision and driver’s negligence.
Public auto insurance is a government-operated automobile insurance system. In Canada, the provinces of British Columbia, Saskatchewan, Manitoba, and Quebec provide a public auto insurance system for their residents. In other Canadian provinces, coverage is provided by private insurance companies. According to studies conducted by the Consumer’s Association of Canada, rates charged in the public auto insurance system are lower than the rates provided in provinces that offer private auto insurance.
Public auto insurance in Quebec only covers personal injuries, with damage to property being insured by private insurance companies. Saskatchewan has the oldest public auto insurance system in Canada; Saskatchewan Government Insurance was founded in 1945, after the Second World War. Other provinces soon followed, with Manitoba Public Insurance being founded in 1971, and the Insurance Corporation of British Columbia being founded in 1973.
Basic auto insurance is compulsory throughout the nation of Canada: each province determines the minimum and optional benefits to be included in auto insurance coverage. Accident benefits coverage is compulsory in all provinces except Newfoundland and Labrador. Before considering a purchase, car buyers should review auto insurance policies in their province and then go to dealerships that offer used cars Barrie ON residents trust.
Other Canadian provinces have considered creating a public auto insurance system. Public auto insurance was considered but eventually rejected in Ontario due to the recession which placed constraints on the provincial budget. A similar appeal for public auto insurance in New Brunswick was rejected by the government. With this in mind, car buyers should review their auto insurance coverage before going to dealerships of used cars Barrie Ontario residents rely on.
New reforms took effect in Ontario on September 2010 that gave residents a more varied range of auto insurance coverage and premiums. In the United States, auto insurance is mandatory in all states except Virginia. These reforms make obtaining insurance coverage a simpler task for buyers when purchasing used cars Barrie ON dealerships offer.
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