Car insurance in Canada is not just an option, it is mandatory. This means that you cannot legally drive your car in Canada without having valid insurance.

Why is car insurance important?
• Legal protection: Insurance provides financial cover in the event of an accident you cause, protecting you from paying for medical repairs and material damage to others.
• Legal obligation: As we mentioned, insurance is mandatory. Not having it could result in heavy fines and the withdrawal of your license.
• Personal protection: Some types of insurance cover damage to you and your property in the event of an accident, even if you are responsible for it.

Types of auto insurance coverage in Canada
• Mandatory coverage (basic coverage): includes civil liability for physical and material damage to others.
• Comprehensive coverage: covers damage to your car, whether as a result of an accident, theft, or acts of nature.
• Additional coverage: includes additional options such as: Driver protection: covers injuries sustained by the driver.

Factors affecting the cost of insurance
• Type of car: The brand, model, and power of the car affect the insurance value.
• Driving Record: Previous accidents and traffic violations increase the cost of insurance.
• Age: Younger people often pay higher premiums due to their statistical records.
• Residential area: Areas with high crime rates may have higher premiums.
• How much you drive: The more distance you drive, the more likely an accident will occur, and therefore the higher the premium.

Tips for choosing the right car insurance
• Compare Prices: Feel free to request quotes from different insurance companies.
• Understanding Coverage: Make sure you fully understand what each type of coverage includes.
• Choose the right deductible: The deductible is the amount you pay out of pocket before insurance begins to cover costs. The higher the discount, the lower the premium.
• Look for discounts: Ask about any available discounts, such as discounts for safe driving or an annual payment.

Auto insurance laws vary from state to state in Canada. Therefore, it is best to consult a local insurance broker for personalized advice.