Of the many assets you own, few are more useful — or valuable — than your automobile. Just like you take steps to protect your investments, so do you need to protect your vehicle — and that means getting car insurance. Having the right car insurance can save you money by providing much-needed financial protection should you get in an accident. Here’s a closer look at why both comprehensive and collision coverage are an absolute must for all drivers.
As the name implies, collision coverage provides financial assistance should you get involved in an accident with another car. This insurance is legally required in Canada, with most of the country having a minimum liability coverage requirement of $200,000.
This coverage is designed to protect motorists whether they are the victim of an accident or if they cause the collision themselves. These insurance policies address vehicle repairs and medical expenses for the victims of the accident, while also providing coverage for vehicle repairs of the person who caused the accident.
Driving without this coverage is not only illegal, it also leaves you fully responsible for the repair and medical expenses of the vehicle you hit. It isn’t unusual for costs to reach tens or even hundreds of thousands of dollars, which can leave you financially devastated. With insurance, you’re protected from such dire consequences.
Not every accident will be the result of a collision with another vehicle. Indeed, a collision with an animal or streetlamp often isn’t covered under typical collision coverage. Likewise, incidents such as vandalism, fire, or theft aren’t covered under a standard collision policy.
Even though the resulting damage from such incidents may not always be as severe as a traffic accident, there’s no denying that the resulting expenses can add up quickly. A fire can completely destroy your vehicle, and victims of theft are often unable to recover their vehicle. Even someone keying your car can result in hundreds of dollars of paint repair work.
Because of this, drivers should also invest in a comprehensive insurance policy that covers the many varied threats their vehicle might face. This ensures that the costs associated with repairing — or even replacing — your vehicle won’t come out of your own pocket.
Protect Your Finances
With the right car insurance policy, you can have confidence that a serious incident involving your vehicle won’t result in an equally serious financial blow. Though the level of coverage you need will likely vary based on your vehicle model and economic circumstances, this is one investment that everyone who drives a car should carefully consider.