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Car Insurance: Liability Vs Collision Vs Comprehensive Coverage?

Car insurance is something that every driver needs to have. It’s not just a recommendation, it’s the law. Why do people need to have car insurance? Well, the most important point is that it protects a driver from civil liability in the event of an auto accident. Insurance is a way of making sure that people are financially responsible for their own mistakes. There are many other benefits to having car insurance, however, and there are many different coverage options.

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First, let’s talk about the backbone of any automotive insurance policy: liability insurance. No matter what other options a person chooses, he or she needs to have, at minimum, liability insurance. Liability insurance covers other people and other people’s property in the event of an accident up to a certain, predefined limit. That means that if a person hits another driver’s car and is determined to be at fault, then the insurance will pay to fix the other person’s car and it will cover personal injury.

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If a person owes money on a car or the value of the car is high enough that it is worth insuring then a person may opt for collision and comprehensive coverage as well. Collision coverage is the insurance that covers a driver’s own personal vehicle in the event of a collision that is determined to be his or her fault. A person who chooses this coverage will choose a deductible (anywhere from $0 to $1000) and in the event of an accident, the insured party is only responsible for the deductible and the insurance will take care of the rest. Comprehensive insurance is similar to collision, except that it covers damage to a car from most things other than a collision. For example, hail damage, fire, theft, or vandalism would be covered under comprehensive coverage.

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In addition, insurance companies offer certain services like tow and rental coverage and many different payment options. Many insurance companies allow a person to split their insurance premium up into either monthly payments with an installment fee or a person can pay for six months to a year up front, with no monthly payments. Insurance companies are also making it easier and easier to pay online and for the insurance payments to come out of a person’s account automatically. Insurance is definitely a “necessary evil” but with all of the options and all of the companies offering insurance, there’s definitely a reasonable policy for every driver out there.

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Car Insurance Rates Across Canada
Although the rates in Nova Scotia are much less than the majority of the country, you still deserve to find the lowest rate plan available. The average car insurance rate in this province is around $91 per month, or $1,093 per year. This is compared to the average rates in Alberta, which are currently sitting at about $114 per month, or $1,371 per year. Worse still, paying the average auto insurance rates in Ontario will set you back about $160 per month, or $1,916 per year.

As with most of Canada, young drivers in Nova Scotia will often pay more than older adults. The province's young adults - between 25 to 30 years of age - will pay an average of $103 per month, or $1,241 per year in auto insurance. Those between 46 and 50 years of age pay an average of $81 per month, or $976 per year, while older adults - between 61 and 65 years of age - pay very little, at an average of $73 per month, or $878 per year. Nova Scotia's youngest drivers (under the age of 25) pay the most, with an average car insurance rate of $210 per month or $2,522 per year.

Your driving record has a big impact on your insurance premiums. If you don't have any violations within the past six years, you could easily receive reduced rates as cheap as $84 per month or $1,002 per year on car insurance. Having a maximum of even two violations in the last three years makes your car insurance premiums rise exponentially, to approximately $189 per month, or $2,273 a year for auto insurance.

What You Need for Coverage in Nova Scotia
In Nova Scotia, it is mandatory for drivers to have $500,000 in third party liability coverage, at least $50,000 in medical payment coverage, and $2,500 in funeral expense coverage. You will also need $250 a week for disability insurance. As a law in Nova Scotia, you cannot sue for more than $8,123 in pain and suffering caused by major injuries. This rule actually saves insurance companies money, allowing the province to have an average insurance premium as low as $783.

Car Insurance: Liability Vs Collision Vs Comprehensive Coverage

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Car insurance can be so expensive. There are ways in which you can save money on this expense though. One way is by rewriting your policy. When you do, here are some things that you should keep in mind.

Raise Your Deductible

Your deductible is the amount of money that you pay out of your pocket before your insurance company begins paying off on a claim that you have filed. The main way in which you can save money on your car insurance is by raising your deductible. This will actually lower your car insurance premium (the amount of money that you pay for your car insurance policy) by as much as 40%.

In Conclusion

Make sure that you ask what all your options are when you talk with your insurance agent. Many of them may not tell you all of your options unless you ask. Make an appointment and take some time to learn about the insurance you are paying for, what it covers, etc.

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