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Your auto insurance is there to protect you against monetary loss if you are in an accident. Your auto insurance is, essentially, a contract between you and your insurance company. You pay a premium, and in return, the insurer agrees to pay for any losses as they are defined in your car insurance policy. In Canada, it is the law to have auto insurance. Your car insurance is valid anywhere in Canada and the United States. It’s a good idea to carry your proof of car insurance with you whenever you drive because you must produce it if a police officer requests. If you are found driving without valid auto insurance, you can have your driver’s licence suspended and your vehicle impounded. In Canada, each province and territory establishes their own required minimum insurance coverage. However, you often can get options that go beyond the basics. One of the nice things about insurance is that you can modify your policy to ensure that you’ve got the exact protection you require, without paying for extra insurance you may not need. The law does not require that you purchase car insurance to cover damages to your automobile. If you have a newer automobile, however, you’ll want to protect your investment and consider purchasing Collision and Comprehensive coverage.

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