The different types of auto insurance
For the vast majority, talking about insurance is not exciting. At Gaudreau, as surprising as it may seem, it’s our passion. So strap yourself in, we’re going to dissect you with all the fun in the world the different types of auto insurance.
Even if the subject gives you hives, knowing the types of car insurance is essential for any driver. And you are rather lucky, since determining the type of auto insurance you need in Quebec is simple!
So simple, that everything is grouped into two main categories: civil liability and material damage caused to one’s own vehicle .
Discovering them in more detail means finding answers to the famous questions: “Should I insure myself ”on both sides”?”, “Am I obliged to take out car insurance?”, “How know what type of car insurance is ideal for me?
Liability in car insurance
Have you heard of “ compulsory car insurance in Quebec”? No, it’s not an urban legend. This is civil liability (Chapter A of the FPQ), which is indeed mandatory in our province.
All Quebec motorists without exception are required to subscribe to it for a minimum value of $50,000. But still, what does it cover? Liability insurance covers you for:
Injury and bodily damage caused to others with your automobile
This coverage compensates you for various forms of bodily injury and damage. If, for example, you run into a cyclist or pedestrian with your car, civil liability will pay the costs.
Material damage caused to others with your automobile
You damage your neighbour’s earthwork when backing up. You hit and damage a commercial sign. You accidentally roll over your sister’s backpack that contained her new laptop. Here are all examples for which civil liability covers you.
Why ask for a value greater than the minimum value ($50,000) of civil liability?
Indeed, the civil liability can go up to 1 or 2 million dollars. An imposing gap with its minimum value, right? In fact, this difference is far from exaggerated. Especially if you are traveling to the United States, where your civil liability remains valid.
Imagine causing material damage with your car at a tourist spot. Not only will you have to pay for the repair, but you may have to face a lawsuit (not uncommon with our American cousins!).
Add to that the difference in exchange rates and you have in hand a hefty bill that could happily exceed the value of $50,000 (which until now seemed very sufficient to you).
Material damage to own vehicle
With one of the types of auto insurance offered in this category (QPF Chapter B), you are “insured on both sides”. On the one hand, civil liability protects you in the event of damage caused by your vehicle. On the other hand, you are protected for damage caused to your vehicle.
Collision and Rollover Hazards
This protection is essential to cover damage to your vehicle if you are responsible for an accident caused by a collision or rollover. Here are the cases in which it applies:
If you go to work downtown every day, for example, this protection could be very useful to you!
All risks except collision and overturning
It’s simple: this protection protects you against damage and loss caused to your car having no connection with the collision (except, oddly, during a collision with an animal) or overturning.
Among other things, this type of insurance protects you in the event of:
As its name suggests, this insurance protects you against all risks. More specifically, it covers you in the cases mentioned in the two types of auto insurance mentioned above.
It is obviously the most complete of all. But do you really need it? An auto insurance broker will be able to guide you to the best solution.
Even if this protection is the least comprehensive, it may be relevant for some drivers. It protects you in the event of isolated risks.
For example, if it’s obvious that the only risk you’re exposed to is fire, it might be better suited to your needs than all-risk car insurance.
By adding to the basic protections described above, the additional protections improve your coverage.
Most car insurance companies will offer them. But, beware: they may not be necessary in your case! Our brokers will inform you about their content and identify those that may be useful to you, such as:
Replacement value or replacement value
The replacement cost endorsement and the replacement endorsement protect you against:
Personal insurance can compensate you in cases such as death, dismemberment and total incapacity following an automobile accident.
Are you away and a covered loss prevents you from returning home? This endorsement covers you for expenses related to the rental of a car, a taxi or any other alternative mode of transportation.