Auto insurance

Collision

If you find yourself in a bit of fender bender, collision insurance would cover you for this. It will also cover your car sliding into a pole during an icy Canadian winter. If your car is totaled, collision insurance will pay the cost of replacing it. Collision insurance covers your vehicle for an accident you are at fault for or if the other person doesn’t have insurance.

Third Party Liability

Ok, so while we know that you are a stellar driver, we also know that not everyone is perfect. This will cover the costs associated with damages caused to another person or vehicle in an accident. This could be medical bills, rehabilitation, lost earnings, legal fees, and other expenses up to the limit of your policy. As a practical matter, you’ll want enough insurance to cover a judgment against you in a major accident so that your personal assets won’t be put at risk.

Comprehensive

This type of auto insurance covers damages resulting from incidents that aren’t related to car accidents or collisions; things like extreme weather, vandalism, falling objects, fire, theft, flooding and animal hits. Basically anything that happens to your car not caused by another person or yourself.