Your Guide to Car Insurance Brokers

If you’re on the hunt for a brand-new car or you already purchased your dream car, you want to make sure it’s completely protected from any unforeseen damage.

The only way you can cruise down the roads with your car feeling safe and protected is by having a good car insurance policy.

You don’t have to think or research too much on how to get the best possible coverage once you hire a professional car insurance broker.

However, it’s necessary to have a general idea on what car insurance is and how car insurance brokers can help you.

What is Car Insurance?

Whether you’ve been in a car accident before or not, everyone knows how tedious and stressful the aftermath of it can be.

That’s where car insurance comes into play, it’s mandatory protection that you purchase to protect yourself, others, and your vehicle from any possible damages or loss.

With car insurance, you save yourself time and effort negotiating with other drivers, or anyone involved in the accident.

Most importantly, you’re also spared the costs of repairing or replacing your car or any property you caused damage to.

While there are certain mandatory car insurance coverages, there are additional coverages you can get as extra protection.

Types of Car Insurance

There are several types of car insurance coverages in Canada, and they are:

  1. Mandatory Coverage
  • Third-party liability insurance

This is the most basic car insurance coverage in Canada, and it protects you from financial payment for damages you cause to another person’s property.

  • Accident benefits

This coverage is for cases where you suffer injuries from a collision and covers any medical costs beyond provincial health insurance, including dental care, physiotherapy, and any at-home services.

  • Uninsured motorist

This covers medical expenses for you and your family in the case of an accident with a driver without insurance and may also cover vehicle damages.

  1. Optional Coverage
  • Collision coverage

This coverage is for when you hit something with your car other than another vehicle, like a guardrail, or when your car is hit while it’s parked.

It can also offer coverage for when you’re in an accident with an uninsured driver.

  • Comprehensive coverage

This coverage is the broadest one as its name implies, and it covers medical, collision-related damages, theft, and floods. This coverage has the most expensive premiums.

  • Specified Perils

This type of insurance coverage protects you from certain kinds of damages that can happen to your car such as theft or an attempt of theft, and weather-related damage like earthquakes and storms.

Why Get Car Insurance?

  1. Protection for Yourself and Others

Not only will car insurance work in your best interest and safety but also the safety of others.

Choosing the right car insurance coverage will guarantee the safety of yourself, your family members, and other people on the road.

  1. Save Time & Money

When you’re in any kind of car crash whether it’s with another vehicle or property owner and you don’t have efficient car insurance, you’ll find yourself wasting a lot of time hunting down everyone involved and their insurance companies to get compensated.

With car insurance, you get to sit back and leave all the hunting and negotiating to your car insurance broker or company.

In addition, not having efficient car insurance coverage will end up being a financial burden on you in case of an accident and costs related to it such as medical expenses.

  1. Peace of Mind

One of the most important things that car insurance provides, and any insurance at that, is the confidence that comes with knowing you will be financially covered in case of an accident, theft, or any natural occurrences.

What is a Car Insurance Broker?

A car insurance broker is either a person or a company who takes the load of researching and comparing insurance quotes off your shoulders.

They take your personal information and requirements and then assess your insurance needs to find you the right quote.

The best thing about using a car insurance broker rather than an insurance agent is that agents usually represent one or more insurance companies while a broker represents the client and works in their best interests.

At the same time, they have the knowledge and connections to be able to get good deals on insurance quotes from several companies for you to choose from.

Why You Should Get a Car Insurance Broker

  1. Saves Time & Money

Shopping for car insurance is harder than you think, it takes a lot of time and great research skills.

In the end, even if you do all the research right, you could choose a quote that is more expensive than what a car insurance broker would get.

That’s why it’s better to hand off this task to someone with the appropriate knowledge and skills.

  1. They Choose the Right Coverage

Choosing the right car insurance coverage can be tricky because there are so many choices out there and you may not need them all and could up paying more than what you need.

Car insurance brokers have the eye for knowing exactly what your insurance needs are and getting you all the necessities while still ensuring you’re not wasting money on coverages you won’t need.

They can also offer you the versatility of the insurance market without making you feel overwhelmed with options and instead, guiding you through each one.

  1. They’re More Experienced

There’s no way around it, car insurance is just too complicated to know all its ins and outs if you’re not in the field.

Luckily, a car insurance broker has the knowledge and expertise to navigate the complex process of getting insurance and can answer any of your concerns.

How to Choose Car Insurance Brokers?

To hire the best car insurance broker, you must first identify your financial situation and specific needs with an overall evaluation of your personal circumstances.

In your search for brokers, make sure you check for third-party ratings and trust in them as you make your choice.

Finally, don’t forget to check for your broker’s credentials and previous experience to ensure they’ll have what it takes to find the best car insurance coverage.

How Are Car Insurance Brokers Paid?

Car insurance brokers get their payment either from one or two sources. Their main source of income comes from commissions given by the insurance company you end up choosing.

Their second source of income comes from charging clients a service fee, yet not all brokers require it.