Finally my first car! Now, how do I make sure?
Are you now the proud holder of a driver's license? Are you finally buying your first car? This step towards freedom also brings responsibilities, such as a first car insurance. Read on to see more clearly and know
Insurance jargon
Let's take a look at the most frequently used terms in auto insurance:
Premium
This is the amount you must pay annually for insurance coverage under your insurance contract or policy. The premium is calculated based on various factors, including:
the car (make, model, year, value, equipment, etc.);
your place of residence;
your driver profile;
your insurance coverage;
your driver's file with the SAAQ;
your accident history.
Police
This is your insurance contract: it includes all the protections and deductibles that you have chosen.
Franchise
This is the amount you have to pay if you make a claim with your insurer for a loss. This amount is fixed in advance with your insurer, when you create your insurance contract. The higher your deductible, the lower your annual premium will be. You just need to make sure that you can afford the deductible should something go wrong.
Sinister
This is the term used to designate any incident or accident (glass breakage, theft, accident, etc.).
Indemnity
Compensation is the amount you will receive in the event of a loss, if you are covered. For example, you had an accident for which you were responsible for which damages amounted to $ 1,580. When making your claim, you will first pay your deductible of $ 500 and then receive the difference, which is compensation of $ 1,080.
Your Parents' Auto Insurance: Is It A Good Idea?
Having your parents' auto insurance policy can be beneficial. It all depends on your situation.
I drive my parents' car
Whether you take their car occasionally or regularly, it is essential that your parents notify their insurer for these two good reasons:
By being registered as a driver, you gain experience. This could help you pay less when it comes time to purchase your own insurance policy.
If you are not registered as a driver and a loss occurs, it could cost you dearly, as your parents may not be compensated for all of the damage.
I have my own car
If your budget allows you to stand on your own, you will need to purchase an insurance policy in your name.
Shop for auto insurance the right way
Here are some tips to make sure you are well protected, while paying as little as possible.
Compare the prices
It's no secret that the price of the same insurance policy can vary considerably depending on the insurer. By asking for quotes from various companies, you will be able to compare prices and make a more informed choice. The more you provide an accurate driving profile, the more realistic you will get.
Good to know: The amount of a premium also varies depending on the type of car. For example, a sports car will cost more to insure annually than a sedan. Likewise, a car model that is among the most stolen cars will cost more to protect. Before purchasing a vehicle, it is therefore a good idea to submit quotes online to ensure that you have the budget to pay the premium.
Compare the coverages of each auto insurance
To make an informed choice, be sure to compare apples to apples. Not all insurers offer the same coverage, so you have to be vigilant. Compare prices, making sure the same coverage is included from one quote to the next, and you'll see more clearly!
The protections you need to know to insure yourself properly
Here is an overview of the protections available for your auto insurance.
Compulsory basic protection
To drive in Quebec, it is mandatory to be covered by Civil Liability protection, offered in any basic insurance policy. She will cover you if you cause damage to others in Canada and the United States. It has to be at least $ 50,000 in value, but the majority of people choose million dollar coverage. If you occasionally travel outside of Quebec, we suggest that you increase this protection to a minimum of two million, as the costs related to bodily injury are high.
Optional basic protections
Two other basic types of protection give you even better protection.
Risk of collision and overturning
It protects the vehicle from damage caused in a collision for which you are responsible or when the vehicle rolls over.
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