Contract The auto insurance

Contract The auto insurance is easier to understand as we think. The insurance contract is generally divided into three parts: liability, damage and injury, and additional safeguards.

1.Liability - In U.S., all drivers are required to purchase auto insurance in the province for damages caused to others. The amount of coverage varies from one province to another, from $ 50,000 to several hundred thousand dollars. This is the only mandatory coverage in auto insurance. Our section on car insurance in the U.S. gives you more information about the minimum insurance in your province.

2.Damage or injury

• Damage to your vehicle - These forecasts applies if you are responsible for the accident, if your car was not running or if no other vehicle is involved. This coverage protects you against fire, theft, damage during collision during a payment, etc... You can choose specific options, or opt for comprehensive insurance, which covers all damage to your car.
• Injuries and medical care - This coverage does not apply if your province has a public insurance plan. It includes compensation for medical expenses, hospitalization, drugs, etc..

3.Additional guarantees - Insurance companies offer a comprehensive range of optional insurance products to extend your coverage to your needs. It is called such endorsements. Endorsements most common in auto insurance contracts are:

• The replacement value endorsement - This endorsement ensures the replacement of damaged parts with new ones free of charge if your car can be repaired. If the vehicle is a total loss, the replacement value endorsement allows you to claim the value of your vehicle in cash. Another version of the amendment allows new value to replace your vehicle with a similar new model.
• Endorsement for rental cars - If you rent a car regularly, this rider covers damage to the rental vehicle.
• Coverage for a vehicle borrowed - If you have an accident in a car that you are not the owner, this endorsement will cover damages.
• Amendment against the depreciation of the vehicle - The purchase value of your car will be taken into account if your vehicle or parts must be replaced.

Auto insurance policies differ considerably from one province to another. However, each province generally has a standard auto insurance policy and in accordance with provincial legislation. Contact your insurance company if you require a copy of a contract in your province, do not hesitate to ask questions!