How to choose car insurance

  1. Assess your needs
  2. Compare offers from different providers
  3. Take action

Buying auto insurance is not a matter of choice—it's mandatory. In fact, it's strictly prohibited to drive a vehicle which is not insured in Canada. However, you're free to choose your insurance company and the type of coverage that suits you best.

Nowadays, you can find a wide range of insurance products on the market. So before you make your selection, be sure to fully understand the various insurance products available and the coverages included in the insurance policy.

First evaluate your situation as a car owner.

  • You've just bought a new but modest car
    It would be best to go with comprehensive coverage, at least until your car is paid off.
  • You drive a not-so-recent vehicle
    Depending on its condition and resale value, you might want to maintain full coverage for a certain period of time or modify your insurance.
  • You inherited your uncle's old clunker
    In that case, basic coverage would do fine to ensure you're protected should you cause damage to someone else's property.

Then ask yourself the following key questions:

  • Is the basic insurance coverage included in the policy enough?
  • Should I add optional coverage that meets my needs?
  • Will I be requesting several quotes?

Now that your priorities are well defined, go to Step 2 and discover various possibilities to fit your reality.

Most car insurance contracts are alike and include the same basic coverage. You can also tailor your insurance to meet your needs by adding optional coverage, such as:

  • Replacement Cost, which protects your vehicle against depreciation for up to 5 years
  • $0 Deductible Option, which eliminates unexpected expenses in case of theft, vandalism or at-fault accident
  • Accident-Free Protection, which ensures that your premium won't increase as a result of a first at-fault accident
  • Trouble-Free Option®, for enhanced coverage on your regular routes and trips

Through it all, one golden rule is worth keeping in mind: in auto insurance, as in all things, it's best to compare apples with apples!

Give the same information to each insurance company you approach, so that you can compare quotes objectively. This information includes:

  • number of drivers
  • driving records
  • make and year of vehicle
  • use of vehicle (annual distance travelled, business usage)
  • location of use (city or country)

Normally, insurers will determine the amount of your premium based on these factors.

  • Which auto insurance you choose will then depend on the benefits that each insurance company offers you

Now that you're a little more familiar with car insurance, go on to Step 3 and take action.

® Trouble-Free Option is a registered trademark of Desjardins General Insurance Group Inc.

® Desjardins Roadside Assistance is a registered trademark of Desjardins Financial Security Life Assurance Company.

In short

Collision coverage is recommended for newer vehicles or vehicles whose value has remained high. On the other hand, for your uncle's old clunker, it's usually enough to insure it “half way,” that is, only for damages to others.

Now that you're a little more familiar with car insurance, go on to Step 3 and take action.

If you have any questions or would like to request a quote, contact an insurance agent for advice on the best coverage for you.

Always make sure to have the right coverage for your needs. You must report any change in your situation which might affect your coverage or insurance premium:

  1. You're moving downtown or to the country.
  2. You're planning to travel outside your province.
  3. You decided to use your car to deliver pizza!