Used Cars

What About Auto
Insurance?

All owners are required by law to insure vehicles driven on public roads.
Some provinces and territories offer public insurance while others have
insurance sold privately. Here are some basic items to consider when buying
vehicle insurance:

• Liability insurance is mandatory, and is used as financial protection
  against loss or injury caused to others while operating your vehicle. The
  minimum amount of insurance required differs across jurisdictions but keep in
  mind that skimping on liability insurance may cost you in the long run. Minimum
  liability will not cover the cost of an accident resulting in the injury of
  several people, for example, particularly in circumstances where litigation is
  an option.
  

  
  

  
  
• Vehicle damage insurance, unlike liability insurance, may be optional.
  Damage insurance, however, is still recommended for the simple reason that
  damages to a vehicle will quickly add up in the event of an accident where you
  are at fault. Not being able to recover any money will have serious
  ramifications on your bank account.
  

  
  

  
  
• Some dealers or credit grantors may require that you take out other
  insurance such as life and/or disability insurance prior to agreeing to do
  business with you. Make sure that you fully read and understand any agreements
  that you are asked to sign and that you get a copy of the completed and signed
  agreement. Do not sign an agreement unless it is completed in full.
  

You should also do some comparison shopping on insurance prices and coverage
prior to signing any agreement. Here are some items to consider in keeping your
insurance rates to a minimum:

• Accidents can increase your insurance costs, especially when you are at
  fault. Though it's easier said than done, staying out of accidents will save you
  money in more ways than one.
  

  
  

  
  
• Statistics show that some vehicles are more likely than others to be
  involved in an accident. Insurance companies are aware of this and therefore
  charge more to insure high-risk vehicles. The make and model of the vehicle, its
  colour, and whether it's a two-door or four-door are all factors considered by
  your insurance company. Some cars are also more expensive to repair or are
  frequently pursued by thieves. Consider how important owning a high-profile
  vehicle is to you. Contact the Vehicle Information Centre of Canada
  (www.vicc.com) to find out which vehicles will cost you more to insure.
  

  
  

  
  
• Where you live may affect what you pay for automobile insurance. Driving to
  work everyday, especially if it's a long commute, does not only mean extra gas
  and wear and tear on your vehicle but also the possibility of a higher insurance
  premium. Urban residents may have higher premiums than those living in rural
  areas.
  

  
  

  
  
• Insurance companies reward those who are of low risk to them. Discounts
  might be offered for driver education, multiple vehicles, high academic
  achievement, anti-theft devices or abstinence from alcohol, among others. Have
  your insurance broker inquire about any of these types of discounts.
  

Sometimes it doesn't pay to be carrying collision or comprehensive insurance
on an older vehicle if the total amount you are paying for the deductible plus
the monthly premium is more then the entire worth of your vehicle.

For more information regarding auto insurance and other topics on cars and
transportation, visit http://www.http:/used-car.com.au/