Canadian Car Insurance

As in the United States, cars driving on public road of Canada must be insured. It is illegal to drive a car that isn’t insured on the road. As with the states, each state has its own minimum requirements for insurance. If you are looking to drive to Canada or even purchased a car there then here is some very basic information that you need to know about car insurance there.

The first thing that you will different is that when you buy car insurance in Canada you will receive a “Canadian Inter-Province Motor Vehicle Liability Insurance Card”. The short name for this card is the “pink card”. It is comparable to the insurance card that your US insurance company would have provided you. The pink card basically will function as proof that your car has insurance anywhere you drive. If you are pulled over the cops may ask for this card and it is your duty to provide it to them. You should take this card anywhere you go but don’t leave it in the car for fear that the car might be stolen together with the insurance card.

You will also find that there are quite strange insurance laws in some states in Canada. In British Columbia, Saskatchewan and Manitoba you can’t get your vehicle registration until you provide proof in the form of a receipt that you have at least basic insurance. The government in these states can sell insurance so you can either buy it from the government or from private companies. It is only after you buy this basic coverage and receive your vehicle registration papers that you can later upgrade your policy to a comprehensive coverage option.

There are also other interesting laws that center on car insurance. In Quebec, claims against injury are covered by a government program. Other claims like property damage, bodily injury that happen outside of Quebec are to be covered by a private insurer. Although the government tries to standardize insurance, each state has its own insurance minimums, standard terms and conditions.

It also pays to know that in some states, insurance can be covered by government. This way you will automatically have insurance once the car is registered.  Your car registration will be proof that you have insurance. If you desire additional insurance then you can get it privately where extra documentation as proof.

On the legislative side, if your car insurance doesn’t cover for economic loss and you are unable to pay for the remainder of the claim, you are in luck if you are in Manitoba and Quebec. These types of lawsuits are simply not allowed in these states. In Ontario, it is legal however it is subject to various conditions like medical, rehabilitation and only if the injury is considered very serious. In Saskatchewan, lawsuits can only take place that may legally recover gross income losses up to a capped limit.

To further complicate things, in Manitoba, Saskatchewan and Quebec law do not allow you to sue for pain and suffering when it comes to vehicle accidents. In Ontario it is much the same as suet for economic loss, the accident has to be pretty big and the injury must be some sort of serious disfigurement or impairment. The courts will decide on the appropriate damages claim.

One thing that people looking to getting cars insured in Quebec need to know is that the motor vehicle insurance system there is different compared to other areas. Car insurance there is split up into two main components, bodily injury and damage to property. The first part, bodily injury is covered by the government with their publicly administrated plans while the “damage to property” part is covered by private insurance companies.

Another law regarding car insurance is that most don’t know about is that insurance in Canada might be more expensive compared to the US. This could is down to the mandatory benefits coverage that is needed everywhere except in Labrador and Newfoundland. This regulation means that the accident benefit will compensate you and your passengers regardless of fault.

The one important thing to note about car insurance in Canada is that it varies quite substantially from province to province. The basics of car insurance are the same however certain coverage become legally necessary depending on where you drive to and where you register your car.