Which Car Insurance Options Should You Choose?

You just found the vehicle of your dreams and you’re about to take possession of it. The next step: Choosing your car insurance. In this article, we’ll tell you more to help you make an informed choice.

A Few Definitions

When taking out your car insurance, your insurance broker might occasionally use some complex terms. We’ll help you make sense of car insurance jargon by explaining a few words that you’re likely to hear often:

• Premium: It’s the cost of your insurance policy.
• Policy: It’s your car insurance contract.
• Deductible: It’s the amount of money that you have to pay when you file a claim.
• Claim: Theft, collision, etc. 
• Endorsement: It’s extra insurance protection that you can add to your policy.

Société de l’assurance automobile du Québec

In Québec,

“the Société de l’assurance automobile du Québec’s public insurance regime covers personal injury if there are any accident victims. Private insurers cover property damage caused or incurred by their clients.”

Without car insurance, you have to pay for the damages to your car in case of an accident. Moreover, you’ll also be responsible for all the costs associated with the property of others. Plus, you could also receive a fine, since car insurance coverage is mandatory in Quebec. 

Don’t Get Tricked

Before taking out a car insurance policy, take the time to shop around and get quotes from various insurance companies. You’ll be surprised to see price differences for the same coverage.

Therefore, we suggest getting three different quotes and taking the time to compare them. If you notice an importance difference in price, it’s likely that the company in question has added some protections that you won’t find in the other two quotes. To avoid unpleasant surprises, make it a point to compare apples to apples, like to like.

What Are the Factors that Affect Car Insurance Rates?

Various factors affect car insurance rates. The following factors are the most common ones, but keep in mind this is not an exhaustive list:

Insurance companies rely on a certain number of factors to determine the car insurance premium. If all the conditions are favourable, the auto insurance policy won’t be expensive, and you’ll even save some money.

In addition, you can get a cheap car insurance contract if you opt for a used car. 

In short, there are various factors that can affect the price of a car insurance policy. It’s very important to read your insurance policy carefully before signing it. To make an informed decision, you should ask all the questions that come to your mind.

Replacement Insurance or Replacement Cost Endorsement?

There’s one last point you should consider before you take out an insurance. You need to understand the difference between a replacement insurance and a replacement cost endorsement.

Normally, the replacement insurance is offered for used cars for sale. The cost of a replacement insurance is fixed and can be added to the monthly payments when you buy a vehicle. The premium for this insurance will be determined depending on the vehicle’s value. If a loss should occur following the purchase of a used vehicle, your vehicle will be replaced with a vehicle of similar value and mileage, or you’ll be awarded an equivalent indemnity.

As for the replacement cost endorsement, it’s generally offered when you buy a new vehicle. It allows you to get reimbursed for the price you paid for your vehicle. This extra protection is added to your insurance policy’s initial premium. Coverage usually varies from three to five years. Finally, the replacement cost endorsement is included in your car insurance policy, and in case of loss, the claims process is filed with your insurance company.

To conclude, there are indeed some factors you need to consider when the time comes to take out an insurance policy. It’s best to familiarize yourself with the subject, get quotes and ask the right questions with your future car insurer.

Touteslesmarques.ca, your dealerships in the Saguenay–Lac-Saint-Jean, Côte-Nord and Charlevoix regions, invites you to discover all our vehicles for sale. Take advantage of our advantageous car financing solutions and get the best deal. Our team of experts will answer all your questions. See you there!