Nearly everyday some one asks us How can I buy Auto Insurance in Canada? Auto Insurance in Canada falls under the jurisdiction of provincial and territorial governments. Distributed in multiple ways, and varies across jurisdictions in terms of the mandatory and optional coverages. Specialized policies like High Risk Auto Insurance will be have similar regulations and purchased usually through an Insurance Broker.
How is Auto Insurance Sold in Canada?
1) Auto Insurance can be sold y private insurance companies like Aviva, Intact, or Echelon. They sell their insurance usually through brokers or agents selling on their behalf. Insurance brokers usually sell Auto Insurance on behalf of several Insurance companies (called carriers or markets). Insurance brokers have the unique ability to get the customer the best price on their Auto Insurance by searching across all of their insurance company relationships and getting the customer the best price for the right insurance coverage.
2) Auto Insurance can also be sold by private insurance companies directly to the public, like TD Insurance. They’re known as direct writers, selling direction the public without intermediaries like an Insurance broker, directly through telephone, in-person mail, or internet.
3) Crown corporations can also sell Auto Insurance, depending on the province. In Ontario, all car insurance is sold through private insurance companies. While in British Columbia Auto insurance is sold through ICBC. These government Crown corps sell their products through direct sales departments or other government agencies such as motor license offices or licensed agents.
Canadian Provinces and Territories with Private Auto Insurance
- New Brunswick
- Newfoundland and Labrador
- Nova Scotia
- Prince Edward island
- Northwest Territories
Each province and territory has its own standard auto insurance policy wordings, which is the type of standardized insurance coverage that the government working with industry develops and is required to be purchased by all drivers, as stated by law or legislation. Although auto insurance policies vary among provinces, many provisions are similar between them.
It is the responsibility of the owner of the car that adequate auto insurance is purchased. A certificate of auto insurance is issued along with the owners’ policy information, outlining the details of the insurance policy coverages. The vehicle liability insurance specified on the special card, “Pink Card” must by law be kept with the driver when the car is in use. The “Ping Card” provides evidence that the owner has the insurance company must provide an actual physical copy of the standard auto insurance policy wording if requested by the insured, usually sent to the insureds home address. In some provinces, the law mandates that the “Pink Card is delivered with every new policy.
Auto Insurance Compulsory Coverages
- Third-party liability
- Accidental Benefits (optional in Newfoundland and Labrador)
- Direct Compensation – Property Damage (In new Brunswick, Nova Scotia, Ontario, and Prince Edward Island)