Understanding Insurance Basics

Property and Casualty (General) Insurance

Auto insurance

Auto insurance is mandatory if you own a licensed vehicle. All Canadian provinces and territories require drivers to have at least liability and accident benefits/bodily injury coverage. Some provinces may require additional coverage.

Liability insurance covers losses (such as injury or death) that your vehicle causes to other people or damage to their property. It does not cover the cost of repairs to your own vehicle.

Accident benefits/bodily injury insurance covers the cost of your own medical expenses and loss of income when you are in an accident.

You can also purchase optional insurance such as collision and comprehensive coverage.

Collision insurance covers the cost of repairing or replacing your vehicle if you hit another vehicle or object.

Comprehensive insurance covers the cost of repairing or replacing your vehicle due to other types of damage or loss, such as vandalism or theft. Comprehensive insurancedoes not cover loss or damage to your vehicle if you hit another vehicle or object in a collision.

Most auto insurance policies do not cover the loss of personal possessions, such as golf clubs, clothing or personal electronics, stolen from your vehicle. Personal possessions stolen from your vehicle are usually covered by your home or tenant insurance. Check your home insurance policy to find out if it provides coverage for theft of personal items from your vehicle.