If you're shopping for motor insurance, it's interesting to note that the two most popular types of insurance are also the types at the two extremes of the spectrum: minimal coverage and full coverage.
These are the two most common and most popular types of insurance for a few reasons.
Each has its own pros and cons, its own advantages and disadvantages, and we hope to dissect and disseminate these two extremes below.
Read on.
Minimum Coverage Minimum coverage means just what it says: minimal coverage.
The very least amount of motor insurance you can legally get.
In many parts of Canada, this might mean that all you really need is some basic liability and property coverage, while in others, it might be a lot more demanding.
In any event, if you drive, you're going to need some sort of coverage.
This type of policy is really best for very, very safe drivers, people with incredibly clean records who have never been found at fault in an accident (or perhaps ever been involved in an accident in the first place).
While this type of insurance will at least keep you out of jail and ensure that your license and car aren't taken away, the fact is that it essentially leaves you naked should anything happen.
It may cover any damages you cause, it may even help you repair your car after an accident, the majority of expenses incurred in an accident, whether it's your fault or not, will come out of your pocket.
Minimum coverage essentially means that you're paying for the right to drive and not go to jail.
Full Coverage If you're buying a new car in most parts of Canada, you're stuck with full coverage until the vehicle is completely paid off.
Other drivers choose to get full coverage in order to make sure that they simply have nothing to worry about in the event of an accident.
With full coverage, everything from a nick or a scrape to a fender bender to a full-on wreck is covered, regardless of who's at fault, what the circumstances were, etc.
etc.
With full coverage, everything is covered, just as the name of this type of insurance policy suggests.
Who is full coverage for? Well, anyone who can afford it, really.
If you have the money for full coverage, then by all means, you should consider it, or at the very least, buy as much coverage as you feel is reasonable (acts of God might not seem so important to you, but at least covering the more probable causes of damage isn't a bad idea at all).
Lowering the Costs The best thing you can do to keep the price down, whether you're buying full coverage or just barely covering your car is to keep a safe, clean driving record.
If your record has absolutely nothing on it, that's for the best.
This means that you should try to handle fender benders yourself when you can, drive very, very safely and keep your car in good shape.
This will keep your rates a lot lower than the next guy's whether you're buying full or minimum coverage.