Full coverage car insurance in Canada typically refers to a type of car insurance policy that provides extensive protection for your vehicle. While there is no one-size-fits-all definition of “full coverage” since policies can vary between insurers and provinces, in general, a full coverage car insurance policy may include:

1. Third-party liability coverage: This is mandatory coverage in Canada and it provides financial protection if you injure someone or damage someone else’s property while driving your car.
2. Collision coverage: This covers the cost of repairing or replacing your car if it’s damaged in an accident, regardless of who’s at fault.
3. Comprehensive coverage: This protects your car from non-collision incidents such as theft, vandalism, or natural disasters.
4. Accident benefits coverage: This provides financial support for medical expenses, lost income, and other costs associated with injuries sustained in a car accident.

What is Liability Car Insurance?

Liability car insurance is a type of auto insurance policy that provides financial protection to the policyholder in the event that they cause an accident that results in injury or property damage to others.

Liability car insurance is mandatory in most states and provinces, including Canada, and is designed to protect the policyholder from financial loss or legal liability in the event of an accident.

There are two types of liability coverage:

1. Bodily injury liability coverage: This covers the cost of medical expenses, lost wages, and other damages incurred by other people if you cause an accident that results in bodily injury or death.
2. Property damage liability coverage: This covers the cost of repairing or replacing other people’s property, such as their car or home, if you cause an accident that results in property damage.

Liability insurance does not cover the policyholder’s own injuries or property damage, and it does not cover theft or damage caused by events such as fires, floods, or natural disasters.

Full Coverage VS Liability Cost Difference

The cost difference between full coverage and liability car insurance in Canada can vary significantly depending on the province or territory.

In general, full coverage car insurance is more expensive than liability-only coverage due to the additional coverage it provides. However, the exact cost difference can vary depending on factors such as the driver’s age, driving history, type of vehicle, and location.

Here is a general overview of the cost difference between full coverage and liability-only car insurance in some Canadian provinces:

1. Ontario: Full coverage car insurance can cost anywhere from $1,500 to $3,000 or more per year, while liability-only coverage can cost around $1,000 per year.
2. Quebec: Full coverage car insurance can cost around $1,000 to $1,500 per year, while liability-only coverage can cost around $500 per year.
3. British Columbia: Full coverage car insurance can cost around $1,500 to $3,000 or more per year, while liability-only coverage can cost around $900 per year.
4. Alberta: Full coverage car insurance can cost around $1,500 to $2,500 or more per year, while liability-only coverage can cost around $700 to $1,000 per year.
5. Manitoba: Manitoba has a public auto insurance system, so drivers purchase basic coverage through Manitoba Public Insurance. Full coverage car insurance can be purchased through private insurers and can cost anywhere from $1,500 to $3,000 or more per year, while liability-only coverage through Manitoba Public Insurance can cost around $800 to $1,000 per year.
6. Saskatchewan: Like Manitoba, Saskatchewan also has a public auto insurance system. Drivers purchase basic coverage through Saskatchewan Government Insurance (SGI). Full coverage car insurance can be purchased through private insurers and can cost around $1,500 to $3,000 or more per year, while liability-only coverage through SGI can cost around $700 to $900 per year.
7. Nova Scotia: Full coverage car insurance can cost anywhere from $1,500 to $3,000 or more per year, while liability-only coverage can cost around $800 to $1,000 per year.
8. Newfoundland and Labrador: Full coverage car insurance can cost anywhere from $1,500 to $3,000 or more per year, while liability-only coverage can cost around $800 to $1,000 per year.
9. Northwest Territories: Full coverage car insurance can cost around $2,000 to $4,000 or more per year, while liability-only coverage can cost around $800 to $1,000 per year.
10. Yukon: Full coverage car insurance can cost around $1,500 to $3,000 or more per year, while liability-only coverage can cost around $800 to $1,000 per year.
11. Nunavut: Car insurance in Nunavut can be more expensive due to the remote location and limited availability of insurers. Full coverage car insurance can cost around $3,000 to $5,000 or more per year, while liability-only coverage can cost around $1,500 to $2,000 per year.
12. Prince Edward Island: Full coverage car insurance can cost around $1,500 to $3,000 or more per year, while liability-only coverage can cost around $700 to $900 per year.
13. New Brunswick: Full coverage car insurance can cost anywhere from $1,500 to $3,000 or more per year, while liability-only coverage can cost around $700 to $900 per year.

Who is Liability-Only Insurance Recommended to?

Liability-only car insurance is typically recommended for drivers who want to meet their legal obligations for car insurance while keeping their insurance costs low. Liability-only insurance is also a good option for those who own an older vehicle that is not worth a lot of money and may not need full coverage.

Liability-only insurance may be a good fit for the following types of drivers:

1. New or young drivers: New drivers or young drivers who are just starting out may benefit from liability-only insurance because it offers the minimum required coverage at a more affordable cost.
2. Drivers on a tight budget: If you are on a tight budget and cannot afford the higher premiums of a full coverage policy, liability-only insurance can be a good way to meet your legal obligations for car insurance while keeping your costs low.
3. Drivers of older vehicles: If you own an older vehicle that is not worth a lot of money, you may not need full coverage insurance. Liability-only insurance can offer the minimum coverage you need to protect other drivers in case of an accident while keeping your costs low.

How much liability insurance should I have on my car in Canada?

here is a breakdown of the minimum amount of liability insurance required by law in each Canadian province and territory:

1. Alberta: $200,000
2. British Columbia: $200,000
3. Manitoba: $200,000
4. New Brunswick: $200,000
5. Newfoundland and Labrador: $200,000
6. Northwest Territories: $200,000
7. Nova Scotia: $500,000
8. Nunavut: $200,000
9. Ontario: $200,000
10. Prince Edward Island: $200,000
11. Quebec: $50,000
12. Saskatchewan: $200,000
13. Yukon: $200,000

While the minimum amount of liability insurance required by law may be enough to meet your legal obligations, it may not be enough to cover the full cost of damages or injuries in the event of an accident. As a result, it’s a good idea to consider increasing your liability coverage beyond the minimum requirement to ensure adequate protection. The amount of liability coverage you should have depends on a variety of factors, including your assets, income, and risk tolerance. It’s generally recommended that you have liability coverage that is equal to or greater than your total assets.

At what point do you drop full coverage on my car

The decision to drop full coverage on your car depends on a variety of factors, including the age and condition of your car, your financial situation, and your level of risk tolerance.

In general, it may be a good idea to drop full coverage on your car when the cost of the coverage exceeds the value of the car. For example, if you have an older car that is worth $3,000 and your full coverage insurance policy costs $2,000 per year, it may not make financial sense to continue paying for full coverage insurance.

However, it’s important to keep in mind that dropping full coverage means you will no longer be protected against damage to your own vehicle in the event of an accident or other covered event. If you can’t afford to repair or replace your car if it’s damaged or totaled, then it may be a good idea to continue carrying full coverage insurance.

Ultimately, the decision to drop full coverage on your car should be based on your individual circumstances and needs. It’s a good idea to talk to your insurance provider and carefully consider the pros and cons before making any changes to your coverage.

My car is paid off what type of insurance do I need?

The types of car insurance coverage required in Canada may vary by province or territory. Here’s a breakdown of the mandatory coverage required in each province:

1. British Columbia: In British Columbia, drivers are required to have a minimum of $200,000 in third-party liability coverage, as well as Accident Benefits coverage, which includes coverage for medical expenses, rehabilitation, and lost wages.
2. Alberta: In Alberta, drivers are required to have a minimum of $200,000 in third-party liability coverage, as well as Accident Benefits coverage, which includes coverage for medical expenses, rehabilitation, and lost wages.
3. Saskatchewan: In Saskatchewan, drivers are required to have a minimum of $200,000 in third-party liability coverage, as well as personal injury protection (PIP) coverage, which includes coverage for medical expenses, rehabilitation, and lost wages.
4. Manitoba: In Manitoba, drivers are required to have basic mandatory coverage, which includes $200,000 in third-party liability coverage, as well as coverage for medical payments, income replacement, and funeral expenses.
5. Ontario: In Ontario, drivers are required to have a minimum of $200,000 in third-party liability coverage, as well as Accident Benefits coverage, which includes coverage for medical expenses, rehabilitation, and lost wages.
6. Quebec: In Quebec, drivers are required to have a minimum of $50,000 in third-party liability coverage, as well as coverage for bodily injury and property damage caused by an uninsured or unidentified driver.
7. New Brunswick: In New Brunswick, drivers are required to have a minimum of $200,000 in third-party liability coverage, as well as Accident Benefits coverage, which includes coverage for medical expenses, rehabilitation, and lost wages.
8. Nova Scotia: In Nova Scotia, drivers are required to have a minimum of $500,000 in third-party liability coverage, as well as Accident Benefits coverage, which includes coverage for medical expenses, rehabilitation, and lost wages.
9. Prince Edward Island: In Prince Edward Island, drivers are required to have a minimum of $200,000 in third-party liability coverage, as well as Accident Benefits coverage, which includes coverage for medical expenses, rehabilitation, and lost wages.
10. Newfoundland and Labrador: In Newfoundland and Labrador, drivers are required to have a minimum of $200,000 in third-party liability coverage, as well as Accident Benefits coverage, which includes coverage for medical expenses, rehabilitation, and lost wages.

Full Coverage vs Liability Car Insurance FAQs

Q: Which one is cheaper, full coverage or liability insurance? A: Liability insurance is typically cheaper than full coverage insurance because it provides less coverage. However, the cost of insurance will depend on several factors such as your age, driving record, and the type of car you drive.

Q: When should I consider getting full coverage insurance? A: You may want to consider getting full coverage insurance if you have a newer or more expensive car that would be costly to repair or replace in the event of an accident. Additionally, if you have a loan or lease on your car, your lender or leasing company may require you to have full coverage insurance.

Q: Is full coverage insurance always better than liability insurance? A: Full coverage insurance is not always better than liability insurance. While it may provide more coverage, it may also come with higher premiums and deductibles. Additionally, if you have an older car that is not worth much, it may not be worth paying for full coverage insurance.

Q: Do I have to choose between full coverage or liability insurance? A: No, you don’t have to choose between full coverage or liability insurance. You can customize your insurance policy to fit your individual needs and budget by choosing the types of coverage and limits that work best for you.

Q: What is the minimum amount of liability insurance required by law? A: The minimum amount of liability insurance required by law varies by state in the US and by province or territory in Canada. It’s important to check the requirements in your area to make sure you have the appropriate coverage. In general, the minimum amount of liability insurance is usually expressed in two numbers, such as 25/50/25, which means $25,000 bodily injury liability coverage per person, $50,000 bodily injury liability coverage per accident, and $25,000 property damage liability coverage per accident.

Q: What factors affect the cost of car insurance? A: The cost of car insurance is influenced by several factors such as your age, gender, marital status, driving record, credit score, the type of car you drive, where you live, and the amount of coverage you choose.

Q: What should I do if I’m involved in a car accident? A: If you’re involved in a car accident, first make sure that you and any passengers are safe and call for medical help if necessary. Then, exchange information with the other driver, including their name, contact information, insurance company, and policy number. Take photos of the accident scene and any damages or injuries. Notify your insurance company as soon as possible to report the accident and begin the claims process.

Q: How can I save money on car insurance? A: There are several ways you can save money on car insurance such as:

• Shopping around and comparing quotes from multiple insurance providers
• Choosing a higher deductible
• Maintaining a good driving record
• Taking a defensive driving course
• Bundling your car insurance with other policies such as home or renters insurance
• Asking about discounts for things like low mileage, safe driving, or anti-theft devices

Q: What happens if I don’t have insurance and get into an accident? A: If you don’t have insurance and get into an accident, you could be held financially responsible for any damages or injuries you caused. This could result in costly lawsuits or legal penalties, including fines, license suspension, or even jail time in some cases. It’s important to have adequate car insurance coverage to protect yourself and others on the road.