Insurance laws all over the world are pretty much the same. But in Canada, particularly for auto insurance, there is a special system. That is why it is important to understand the system before you go finding auto insurance quotes in Canada.
Canadian law needs each and every motor vehicle driver to have auto insurance. Of course we are talking about licensed drivers here. But what about the rates? Same rates cannot be applied to everyone for sure. They depend on many variables. The auto insurance companies carefully determine the rate depending on the variables.
So, what variables do auto insurance companies assess? Well, they take a close look on everything related to you and your driving including things like the model of the car you are/will be driving, your age, sex, location etc. They also check the the number of tickets you got and accidents you were involved with. In short words- your driving history. Then auto insurance companies use that info to evaluate you. Meaning, they find the risk factor for you claiming insurance money in upcoming times. Depending on that, the determine your rate.
Canadian law needs each and every motor vehicle driver to have auto insurance. Of course we are talking about licensed drivers here. But what about the rates? Same rates cannot be applied to everyone for sure. They depend on many variables. The auto insurance companies carefully determine the rate depending on the variables.
So, what variables do auto insurance companies assess? Well, they take a close look on everything related to you and your driving including things like the model of the car you are/will be driving, your age, sex, location etc. They also check the the number of tickets you got and accidents you were involved with. In short words- your driving history. Then auto insurance companies use that info to evaluate you. Meaning, they find the risk factor for you claiming insurance money in upcoming times. Depending on that, the determine your rate.
But, the operation of auto insurance is not the same in all parts of Canada. There are a few differences in terms of regulation, administration and application. These varies in provinces. In Manitoba, British Columbia, Saskatchewan - it's regulated by government. No private involvement there. In Quebec, there is a hybrid administration consisting both government and private sector. In remaining provinces, auto insurance is regulated by the private sector.
Like the rest of the world, in Canada, distribution of auto insurance is done by many networks. That way, auto insurance people can connect to consumers easily and vastly. There are a few types of auto insurance professionals. These types are given below and note that, these are all licensed professionals/individuals.
• Mediators – Also known as brokers. These are individuals working with auto insurance companies and with consumers. They give all kinds of info to consumers with respect to their auto insurance needs. If you need expert opinion, suggestion, support, you contact them. They work with different companies. That means one single broker can work with several auto insurance firms and customers.
• Direct Responsive Insurers - They work in all parts of the country for auto insurance firms- each for single firm. They deliver all resources and helps you need for any kind of insurance. Their specialty is that their marketing policy is direct response.
• Agents – They give you all expert opinion you need. They also provide advocacy and support. They are just like the mediators but there is a difference. Each of them usually work for one single company. They sell insurance policies to consumers, provide support and all help they need.
This system in Canada was built for you. So that you get the help from various resources. As auto Insurance is a must for licensed drivers, study first, know the system and get your best auto insurance quote.
