Why purchase SUV insurance?
The importance of SUV insurance cannot be understated, from protecting you in the event of bodily injury to protecting you from theft. Keep reading to discover four reasons to purchase SUV insurance:
You are protected in case of bodily injury
Auto accidents can lead to injuries, and the cost of medical expenses adds up quickly. With SUV insurance, you will be covered in the event of bodily injury resulting from a collision. Whether you or someone else involved in the accident requires medical attention, you can seek compensation from your insurer. More specifically, SUV insurance coverage can help pay for medical expenses not covered by health insurance, such as prescription medications or rehabilitation.
You are protected in the event of vehicle damage
Another benefit of SUV insurance is that it provides financial protection if you get into a collision on the road that damages your vehicle. Car repairs can be costly, but SUV insurance can help pay for the cost of repairing or replacing a damaged vehicle.
You are protected in case of theft
If you choose to add comprehensive insurance to your SUV policy, then you and your vehicle might be covered in the event of theft. So if your SUV is stolen, your insurance company may help cover the cost of replacing it. Comprehensive coverage can also protect your vehicle from damage caused by other perils, such as vandalism, fire, and water damage.
You are in compliance with the law
One final reason to purchase SUV insurance is that it puts you in compliance with provincial law. Getting behind the wheel without insurance anywhere in Canada is a serious offense. Depending on the province, getting caught driving uninsured could lead to hefty fines, jail time, and licence suspensions.
Do I need SUV insurance in Canada?
Yes, all drivers need auto insurance to get behind the wheel in Canada. Whether you own an SUV, sports car, or truck, you must have a valid car insurance that complies with the regulations in your province to drive. Each province and territory in Canada has its own minimum coverage requirements that must be met. For example, in Ontario, all SUV insurance policies must include no less than $200,000 in third party liability coverage. Failure to purchase the necessary insurance before driving can result in fines worth tens of thousands of dollars and the suspension of your driver’s licence.
Mandatory SUV insurance coverage
Now that you know SUV insurance is mandatory throughout Canada, you may be wondering what specific coverage is mandatory. While this varies by province, most standard SUV policies in Canada include four types of coverage: third party liability, direct compensation - property damage, accident benefits, and uninsured automobile coverage. We outline each of the four mandatory coverage types below:
Third party liability coverage
Third party liability coverage protects drivers if they get into an accident that they are at fault for. For example, if you cause a collision that results in bodily injury or property damage, third party liability coverage can help you cover the costs of medical expenses or vehicle repairs. It can also help pay for any necessary court fees or legal counsel. Many provinces require drivers to carry a certain amount of third party coverage. For example in Ontario and Alberta, drivers must hold a minimum of $200,000 in third party liability coverage at all times.
Direct compensation - property damage coverage
Direct compensation - property damage coverage protects the policyholder in the event that they get into an accident that was not their fault. This type of coverage offers compensation if you suffer an injury or your car is damaged in the accident. In the case of direct compensation, the insurance company may reimburse the policyholder directly for their claim.
Accident benefits coverage
Accident benefits coverage can help cover the costs of medical expenses following a collision. This type of coverage can be claimed no matter which party was at fault for the accident, and it can help pay for the medical expenses of the driver, passenger, or any pedestrians involved in the accident. Examples of medical expenses accident benefits can cover include rehabilitation, prescription medications, and physical therapy.
Uninsured automobile coverage
Uninsured automobile coverage protects you and any passengers in your vehicle if you’re involved in an accident with an at-fault driver who is uninsured or underinsured. This mandatory coverage type may also protect against hit-and-runs.
Optional SUV insurance coverage
Some drivers might want to purchase extra protection for their SUVs. Thankfully, they have several options. Collision coverage, comprehensive courage, and accident forgiveness coverage are a few policy options that can be added to any SUV insurance plan. We break down each of these optional coverages below:
Collision coverage protects the policyholder if they get into an accident with another vehicle or object on the road, no matter who is at fault for the accident. Under the collision coverage section of your policy, you can receive compensation to help pay for any property damage that resulted from the accident, such as a damaged car in need of repair.
Comprehensive coverage protects SUV drivers against a wide range of unforeseen events on the road. While standard auto insurance coverage in Canada provides a certain degree of protection against collisions, it does not protect motorists from non-collision-related circumstances. That’s where comprehensive coverage comes in. This optional coverage type can safeguard your SUV against insured perils, like theft, vandalism, falling objects, water damage, and fire.
Accident forgiveness coverage
One final type of optional SUV insurance coverage popular among drivers is accident forgiveness. Accident forgiveness is additional coverage that can be added to your SUV insurance policy as an endorsement, to protect your driving record and to help prevent your insurance premium from increasing if you have an at-fault accident claim. Note: coverage varies by province.
How does an insurance company determine the cost of SUV car insurance?
Insurance companies consider all kinds of factors when calculating car insurance premiums, which means not all SUV drivers will pay the same rates. From a driver’s age and marital status to their driving record and location, many details can influence SUV insurance costs. Drivers might find it helps to know these factors so they can understand why their insurance premium costs what it costs. Some of the most common factors that determine SUV insurance rates include:
- Driving record
- Driving history
- Claims history
- Local laws
- Make, model, and year of your vehicle
- Coverage, limits, and deductibles
- How frequently you drive your car
- Marital status
How to find cheap SUV auto insurance
SUV insurance should never break the bank. To ensure you don’t spend more on SUV insurance than you have to, the experts at BrokerLink have put together a list of tips for saving money on auto insurance:
Choose annual over monthly payments
Paying for SUV insurance in one annual installment rather than twelve monthly installments can save you money. This is because many insurance companies charge an administrative fee every time you make a payment, which is why making a one-time payment each year usually ends up being cheaper in the long run.
Insure multiple cars together
If your home has more than one vehicle, do yourself a favour and insure them with the same provider. Purchasing multiple auto insurance policies from the same insurance company can make you eligible for a discount between 15% and 20%.
Bundle business insurance or home insurance with SUV insurance
Purchasing multiple types of insurance from the same provider can also save you money on SUV insurance. So if you are looking to buy home insurance, business insurance, or recreational vehicle insurance for a boat or ATV, in addition to SUV insurance, consider purchasing them together and you could save up to 15% per policy.
Install winter tires on your SUV
Insurance companies reward drivers who take steps to lower the odds of a collision. One example of this is installing snow tires on your SUV. Insurers recognize that winter tires perform better than other tires in snowy, sub-zero conditions and may give you a discount if you keep them on your car during set months of the year. Discounts vary by provider but may be up to 5%.
Complete an approved driving program
Another way for young drivers to save money on SUV insurance is by completing an approved driving program in your province. Many insurance companies offer discounts to drivers who complete driving courses, as they recognize that taking lessons from a professional can make you a safer, more responsible driver who is less likely to get into a collision.
Raise your deductible
One simple way to lower your SUV insurance rate is by increasing your policy deductible. Generally speaking, increasing the deductible on any insurance policy usually lowers the cost. Essentially, the insurance company rewards the policyholder for agreeing to take on more responsibility. If you can afford to raise your deductible, consider doing so by $1,000 or even $500.
Buy a hybrid or electric SUV
Did you know that driving an electric or hybrid vehicle could save you money on car insurance? It’s true. So if you are looking to buy a new SUV, consider an eco-friendly one. Your insurance company might give you a discount of up to 10% if you can prove you drive a hybrid or electric SUV.
Maintain a clean driving record
Maintaining a clean driving record is one of the best pieces of advice we can offer when it comes to saving money on SUV insurance. Insurance companies reward drivers with stellar driving records. To achieve a clean record, you should drive safely and responsibly, obeying the rules of the road at all times.
Work with an insurance broker
One last tip for saving money on SUV insurance is to work with a reputable broker from BrokerLink. BrokerLink is a full-service insurance brokerage with expertise in home insurance, car insurance, business insurance, and more. We know the ins and outs of the insurance industry and have the resources to help you find quality coverage at a great price. Even better, we do all the work for you. We shop around on your behalf, compare quotes, and unlock discounts to get you the best possible rate for your SUV insurance. Save time and money by working with a BrokerLink insurance advisor.
Get a free SUV insurance quote with BrokerLink
What are you waiting for? Contact BrokerLink to learn more about SUV insurance and receive a free quote today. We can be reached by phone, online, or in person at any one of our locations throughout Canada. You can also request a no-obligation, accurate quote now using our online quote tool. We can’t wait to hear from you.
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