Personal truck insurance vs. commercial truck insurance
There are typically two categories of trucks: personal and commercial. A personal truck is one that is used for personal reasons (i.e. to commute to and from work). Examples of personal trucks include pickup trucks, SUVs, and even vans. Drivers of these types of trucks can purchase standard auto insurance. Oppositely, commercial trucks are those used for business purposes, such as to transport goods. They are generally much larger and require commercial insurance.
Is truck insurance mandatory in Canada?
Yes, all types of vehicles, including trucks, are required to have car insurance in Canada. In fact, in order to register your vehicle with the province you live in, you are required to show proof of insurance. The truck insurance you purchase must comply with provincial regulations, which means that it must meet the minimum coverage requirements set by the province. Driving without insurance is illegal, so if you choose to get behind the wheel without a valid truck insurance policy, you could be fined or have your licence suspended. Depending on the province, uninsured driving can also result in jail time. Therefore, all drivers must purchase a valid, up-to-date car insurance policy, no matter where they live in Canada or what type of vehicle they drive.
Compulsory truck insurance coverage
As mentioned, car insurance is mandatory in Canada. Each province has its own requirements, however, most provinces generally require that drivers purchase policies with four specific coverages: third party liability, direct compensation - property damage, accident benefits, and uninsured automobile coverage. We break down each type of compulsory truck insurance coverage 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, liability coverage can help you cover the costs of medical expenses or vehicle repairs. It can also help pay for court fees or legal counsel, if necessary. 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 truck insurance coverage
For additional protection, drivers might be interested in adding optional coverage to their truck insurance policies for peace of mind. Three of the most popular types of optional truck insurance coverage include collision coverage, comprehensive coverage, and accident forgiveness coverage:
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, as the name suggests, helps protect drivers against a wide range of unforeseen events on the road. Though standard auto insurance coverage in Canada provides a certain degree of protection against collisions, it does not protect motorists from non-collision-related circumstances. However, comprehensive coverage does just this. It can cover your truck in the event of damage caused by an insured peril, like theft, vandalism, falling objects, water damage, and fire.
Accident forgiveness coverage
One final type of optional car insurance coverage popular among drivers is accident forgiveness. Accident forgiveness is additional coverage that can be added to your truck 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.
Six tips to save money on truck insurance
Purchase quality truck insurance that doesn’t break the bank by following the money-saving tips below:
Increase your policy deductible
One quick way to save money on truck insurance is by increasing your policy deductible. Did you know that increasing the deductible on any insurance policy typically lowers your rates? By agreeing to take on more responsibility, the insurance company will often reward you with a cheaper policy. So if you want to reduce how much you pay for truck insurance, consider raising your deductible by $1,000 or even $500. But before you do so, be sure to speak with a broker about the consequences of raising your deductible.
Choose annual over monthly payments
Paying for your truck insurance policy annually rather than monthly is another way to save money on car insurance. Since most insurance companies charge an administrative fee for each payment, making a one-time payment each year can save you money.
Insure multiple vehicles together
If your home has more than one vehicle, insuring them together can save you money. Purchasing multiple car insurance policies at the same time from the same company can save you between 15% and 20% per policy.
Bundle business insurance or home insurance with truck insurance
Just like how buying multiple car insurance policies from the same provider can save you money, so too can purchasing multiple types of insurance from the same provider. So if you’re in the market for business insurance, home insurance, or recreational vehicle insurance on top of auto insurance, consider buying them from the same place and you could save up to 15% per policy.
Install winter tires on your truck
Insurance companies reward drivers who take steps to ensure their safety and reduce the odds of a collision. One example of this is by installing winter tires on your truck. Doing so can make you eligible for an auto insurance discount of up to 5%.
Enrol in an approved driving course
Another way to save money on truck insurance is by enrolling in an approved driving course in your province. Many insurance providers offer discounts to young drivers who complete driving programs, as they recognize that taking a driving course can make you a safer, more responsible driver.
Work with an insurance broker
One final tip for saving money on car insurance is to work with an expert broker from BrokerLink. BrokerLink has been in business since 1991, which means we know the ins and outs of the auto insurance industry and can help you find great coverage at a great price. Our insurance advisors have the resources and expertise to find you the best truck insurance rate possible. Plus, we do the work for you, obtaining quotes, comparing policies, and unlocking discounts on your behalf.
Contact BrokerLink for a free truck insurance quote
Save time and money by contacting BrokerLink today. We can answer any questions you have about truck insurance or provide you with a free quote. You can also request a free quote now using our online tool. Answer a few basic questions and you’ll receive an accurate and competitive truck insurance quote in minutes.
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