Simply stated, car insurance protects you against the financial losses you would suffer if you were involved in an automobile accident. Your insurance company pays for these losses out of the pool of insurance premiums it collects from its thousands of customers. If you have no car insurance, you risk losing your savings, your home and your personal assets every time you get behind the wheel of your car.

The financial protection offered through car insurance covers many areas: It protects you against claims if you're responsible for an accident causing injury or death to another person. Similarly, you are protected in the event you damage someone else's car or property (this is known as Third Party Liability). It can protect you, your family and your passengers against financial losses caused by injury in an automobile accident and it can provide financial compensation for dependents in the event of your death (this is known as Accident Benefits). It can also protect you against the cost of damage to your car from a collision or other causes (this is known as Collision or Comprehensive).

YES.
By law, anyone who owns a motor vehicle and drives on public roads anywhere in Canada is required to have certain basic coverage. You have to purchase Accident Benefits insurance, Uninsured Automobile coverage and at least $200,000 worth of Third Party Liability insurance.

Contact your broker as soon as possible to advise that you've had a loss. In cases of injury in a car accident, or if theft or break-in is involved, the police must be told as well. Once your insurance company has been advised, a claims specialist — called an adjuster — will be assigned to look after your claim. The amount you receive for your claim will depend on the type of coverage you bought.

The vast majority of claims are resolved amicably through negotiation. A car insurance policy is a legal contract between you and your insurance company. As with any contract, the courts have the final decision in any disagreement between you and your company, or in any dispute between you and another person involved in the same accident. In such cases, the court decides who is responsible and may also decide the extent of damages to be paid.