What does basic car insurance coverage include?

Basic or standard car insurance is the mandatory coverage that you need to have to drive a car in a particular province. In the province of Ontario, basic car insurance has to provide the following coverage: Third-party Liability Insurance This mandatory coverage safeguards you against lawsuits for physical injuries to a third party, as well as property damages caused while driving. The province of Ontario requires you to carry at least $200,000 in third-party liability insurance coverage, but most drivers choose coverage close to $1 million. Statutory Accident Benefits Coverage This basic car insurance coverage pays for the treatment of physical injuries to the driver, irrespective of who caused the accident. It also covers supplementary medical, rehabilitation and attendant care, and non-earner and income replacement benefits. Direct Compensation Property Damage Coverage This covers damages to the car and the property inside the car when the accident is caused by the other driver. To get the benefits of this coverage, the other driver must also be insured. Uninsured Driver Coverage This coverage pays for the physical injury to you and your family caused by an uninsured driver or a hit-and-run driver.

Should I cancel my car insurance?

Even though you have the option to cancel your car insurance altogether in a bid to save money while you’re not using your car, we strongly advise against it. There are two major drawbacks to canceling your car insurance: If you have to drive your car in case of an emergency, and get into an accident, you will have no insurance coverage on either the car or the driver. When you decide to buy car insurance again in the future, there will be a gap in your insurance history, which will lead to higher premiums. While we’re all looking for ways to save some cash in these financially challenging times, make sure to take a close look at your policy and plan your car insurance coverage according to your needs.