Auto insurance is required in the provinces of Canada. In Edmonton, for instance, basic insurance is necessary for every vehicle owner. The insurance will protect you and your car and possibly a third party. Read on to know some facts about the coverage of auto insurance as required by Edmonton law.

Types of auto insurance

Before discussing the basic auto insurance coverage, it is important that you have some knowledge on the different types of auto insurance coverage. One type of coverage is the liability coverage. This covers other people's injuries and death you are responsible for. Aside from this, it also provides legal defense if the victim files a lawsuit against you. There is also a coverage for physical damage. This one covers your vehicle and other people's vehicles. This can be broken down into two types, the collision coverage and the comprehensive coverage. The former covers damages when your car hits another vehicle or is hit by another car. The latter covers damages not caused by collision. These include damages caused by flood and theft.

Basic coverage included in an Edmonton auto insurance Plan

Canadians are required by law to have a third party liability insurance. This refers to the insurance that covers damages and liability in case you injure or kill someone in an accident. The mandatory minimum coverage is usually $200,000.

It is best that you carry more than the liability insurance in order to provide protection for you and your car as well. Remember that if the damage you incur exceeds the insurance coverage you have, you are going to pay for the exceeding amount. There are numerous insurance companies in Edmonton. You should evaluate the offers of these companies to choose the best one that provides excellent coverage at an affordable rate.