Driving In Yellowknife: Understanding The Auto Insurance Requirements
Like many cities and territories in Canada, it’s important to recognize and understand the auto insurance requirements where you live. Obtaining auto insurance is the law, so if you’ve just received your licence or purchased your first vehicle, you’ll want the best car insurance for a great value.
However, getting the right price for auto insurance isn’t the only thing you should be concerned about. If you’re new to driving in Yellowknife, it’s a good idea to get well-acquainted with the car insurance requirements before taking your vehicle for a joy ride.
Here are the most common auto insurance requirements in Yellowknife:
Mandatory Insurance
As mentioned, auto insurance is mandatory by law if you plan on taking your set of wheels for a spin in the Northwest Territories. It also protects you against financial loss in the event of a serious accident.
Two types of car insurance are mandatory by law:
- Liability Insurance: This can cover losses and property damage that your vehicle causes. Liability insurance won’t cover the cost of repairs to your own vehicle from damages.
- Accident Benefits Insurance: This covers the cost of your own medical expenses and loss of income from a car accident, regardless of who is at fault. Whether you need to pay for treating injuries, rehabilitation, lost wages, or funeral expenses, accident benefits coverage is an essential insurance policy.
Optional Insurance
- Collision Insurance: This insurance covers your vehicle if you sustain damage from hitting another car, person, or non-moving object.
- Comprehensive Insurance: This type of coverage is often sold with collision insurance and protects your car from theft, vandalism, fire, extreme weather conditions, etc.
Public & Private Auto Insurance
All Canadian provinces and territories require drivers to have insurance for their vehicles, while only some provinces might mandate additional coverage. Insurance will be provided by public or private insurance companies.
Public Auto Insurance
In Canada, public car insurance is available to residents in B.C., Manitoba, and Saskatchewan. The costs are promoted to be low, but the coverage options can be quite limited. Depending on the province, most public insurance policies are designed to be “one size fits all,” meaning the prices, services, and premiums are fixed. Better drivers will usually pay a little more and poor drivers will be sheltered in the collective group.
Private Auto Insurance
Private insurance provides the benefit of free-market pricing, and the competition between insurers can offer more value to customers. The Canadian locations that get the option of private auto insurance include the Northwest Territories, Alberta, New Brunswick, Newfoundland and Labrador, Nova Scotia, Nunavut, Ontario, PEI, and Yukon. Better drivers will always get the best rates, while poor drivers will see substantial increases.
With many private insurance companies available, you have more of an option when it comes to pricing and premiums.
What Else You Should Know
As you may or may not know, the amount of money you pay to an insurance company is based on many factors, including age, gender, driving history/experience, previous claims, and much more.
But did you also know that all drivers in a single household must be listed on your insurance policy in Yellowknife? In addition, if you’ve had a continuous insurance coverage policy for a long time, you may be able to receive a lower premium.
Lastly, you can save your insurance history by putting your car on lay-up instead of cancelling your policy to save money, which would cost you more in the long run.
Do you need a hand with finding the right insurance coverage for your new vehicle? Get assistance from an experienced professional insurance broker in Yellowknife. Our team of insurance brokers can provide both personal and commercial car insurance. Contact us today for more details or to receive a quote.