If you have ever been involved in an auto accident with someone who does not have car insurance, you can understand the frustration that this experience will cause. Car damage is expensive to repair, and it can be very dangerous to continue driving a damaged car without properly repairing it. Paying a monthly or yearly premium for a car insurance policy might not seem worth the cost, but consider the amount you will have to pay if you damage someone else’s vehicle. In addition, if the accident is your fault, you will be responsible to pay for any medical bills to treat injuries caused by the crash. Can you afford that potentially huge out-of-pocket expense?
Each Canadian province has a set minimum amount of required coverage for all drivers. In some areas, the government issues coverage, so you must purchase it through them. Other provinces have an open market, where you can compare prices and purchase a car insurance policy that fits with your needs and your budget. One benefit of the Canadian insurance market is that companies cannot use your credit history as a reason to hike up your premiums or deny you coverage.
There are also laws that permit you to sue drivers who do not pay for medical bills and/or damages to your vehicle. So if you choose not to carry a car insurance policy, be aware that the legal system will allow other drivers to come after you and hold you responsible for repairing the damage. If you consider the costs of car repairs, medical bills, as well as legal fees, you can be sure that paying your monthly car insurance premium will cost a lot less.