Whenever you get behind the wheel of a car, it is possible that you may cause damage to other people’s property, or injure – or even kill – yourself, other drivers, passengers or pedestrians.
Mandatory Insurance Coverage
Most people don’t have the money to pay for the losses (property damage, injury, death) they might cause while driving, so governments require vehicle owners to carry a certain amount of insurance to cover any losses they might cause others to suffer (Liability).
Some governments, including those of every province and territory in Canada, also require owners to carry coverage for their own medical expenses and loss of income resulting from driving-related injuries (Accident Benefits/Bodily Injury or AB/BI).
Optional Insurance Coverage
You can also voluntarily purchase additional insurance for your car, including:
- Coverage for damage to your car (Collision)
- Protection against theft, vandalism and other perils (Comprehensive)