By Dave Lympany
Auto insurance in Canada is as essential as most other
countries around the world. The main difference is that each
Province has its own rules and regulations regarding the
minimum level of cover and also who can supply the insurance
cover. Without a doubt it is imperative that wherever you
reside in Canada you do have the minimum level of cover
required by Provincial Law, you were truthful when you applied
for the coverage and that you are able to produce the correct
documentation (the “pink card” which is your proof of
anywhere in Canada) if requested by the police.
The minimum level of Auto Insurance and who provides it
around the various Provinces with British Columbia, Manitoba
Saskatchewan Government Insurance agencies being the
vendor. You will purchase the minimum level of cover when you
register your vehicle each year. This applies to the minimum
coverage with both the Government and Private companies
offering additional coverage that effectively boosts the level
of protection. The Province of Quebec has a slightly different
system with any vehicular or property damage being covered by
private companies and the injury coverage being provided by
Provincial Government. These provinces may not give out the
card as the vehicle registration is proof of insurance.
The remaining Provinces all have private insurance companies
giving the Auto Insurance coverage with Alberta in particular
recently having a Provincial Government led revamp of their
system. This led to a reduction in the maximum level of
compensation paid out to minor injuries in a bid to reduce
In Canada, every vehicle driver who is correctly licensed has
access to the basic auto insurance required by Law. However,
your driving history will have a direct impact on the amount
you will pay for this insurance along with several other
1. The make and year of vehicle you drive (for comprehensive
2. The location of the vehicle (“bad area’s with high crime
have higher premiums)
3. Business use
4. Insurance claim record (more claims higher cost)
5. Number and age of other drivers who are entitled to use
vehicle and their driving records.
The Canadian Council of Insurance Regulators is a country wide
body that’s mission is to “promote an efficient and effective
regulatory system in Canada to protect the public interest”.
Each Province in turn has its own insurance regulatory body to
ensure that standards are introduced and then subsequently
followed – these regulators cover most types of insurance and
not just the Auto Insurance.
If you are inadequately or incorrectly covered the
may be severe. The legal action will undoubtedly involve
points on your license and also a hefty fine. This in turn
increase your future insurance premiums quite substantially.
The other side of it is that should you be involved in an
accident where you are at fault your insurance will be
Then you are liable for all the costs associated with the
accident (yours and other vehicle repairs/replacement, damaged
property, emergency service costs, clean up costs. This may
seem a lot of money, which it is, but this will pale into
insignificance should anyone be injured seriously or killed
will most likely end up in bankruptcy.
Another good tip is to use a quality Auto Insurance company,
not always the cheapest, but I know from experience that if
are injured in an accident you have better things to concern
than being messed around by a substandard insurance company.
Physiotherapist treating my minor injuries had extensive
experience of clients who had injuries being treated that were
fighting every step of the way to have the treatment paid for
when it was clearly covered in the policy.
In the event of an accident or claim against your policy it is
imperative you contact your insurance agent as soon as is
practically possible. If injuries have been inflicted,
damage or theft taken place or the amount of damage will be
beyond the limit stated for each Province then the Police must
also be contacted within a prescribed time limit. Contacting
the Police and the agent will ensure that correct procedures
are followed, you do not negate the policy or incur additional
Police Charges (depending upon circumstances).
More, detailed information can be found at
About The Author: Dave Lympany arrived in Canada with his
family in 2003 and has developed an exceptional information
resource for Canada and Canadian Immigration which can be