Two Major Insurance Extremes
If you’re shopping for motor insurance, it’s interesting to note that the two most popular types of insurance are also the types at the two extremes of the spectrum: minimal coverage and full coverage. These are the two most common and most popular types of insurance for a few reasons. By understanding the positive and the negative parts of each type of coverage, you’ll be equipped with the understanding to choose the right policy for your needs. Read on.
Minimum Insurance
Minimum coverage is pretty self explanatory. It is the smallest policy in order to still be able to drive. In many parts of Canada, this might mean that all you really need is some basic liability and property coverage, while in others, it might be a lot more demanding.
In any event, if you drive, you’re going to need some sort of coverage. This type of policy is really best for very, very safe drivers, people with incredibly clean records who have never been found at fault in an accident (or perhaps ever been involved in an accident in the first place).
While this type of insurance will at least keep you out of jail and ensure that your license and car aren’t taken away, the fact is that it essentially leaves you naked should anything happen. If an accident is caused by you, then you will have to pay for your car repairs with your own money, or possibly even have to buy a new car. A minimum insurance coverage is basically the purchase of your right to drive your car.
Complete Coverage
If you purchase a new vehicle in Canada, until it is totally paid for, you have to buy full coverage for it. Other drivers choose to get full coverage in order to make sure that they simply have nothing to worry about in the event of an accident.
With full coverage, everything from a nick or a scrape or a fender bender to a full-on wreck is covered, regardless of who’s at fault, what the circumstances were, etc. etc. As the name indicates, everything gets covered and protected.
Who is full coverage for? Well, anyone who can afford it, really. If you’re able to buy it without going broke, it’s definitely a worthwhile investment for you.
Slicing Costs
The best thing you can do to keep the price down, whether you’re buying full coverage or just barely covering your car is to keep a safe, clean driving record. This means that you should try to handle fender benders yourself when you can, drive very, very safely and keep your car in good shape. This will keep your rates a lot lower than the next guy’s whether you’re buying full or minimum coverage.
Determining which insurance policy is correct for you is challenging. Get an insurance quote from the top firms on Kanetix in less than 5 minutes.
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