With a growing
number of cars in the world countries like Canada
or the United States
and European countries, also experience a growing number of car accidents. Auto
insurance became one of the main things that protects the driver from financial
losses. Auto insurance is a legal contract between driver and insurance
company, that not only provides ongoing protection to the driver, but also can
be a constant reminder of the possible dangers on the road. While the driver
pays the premium to the company, the company provides coverage in case of an
accident. There are three types of coverage available in any insurance:
property, liability and medical coverage. Property coverage pays for damage
done to your car and in some cases repays the costs in case of theft. Liability
coverage pays for your legal responsibility to others for causing bodily injury
or property damage during an accident. It is calculated according to the fault
of the driver and it is important to remember that in case of an accident the
fault can be distributed among two or move drivers involved. Medical coverage
pays for the cost of treating injuries after the accident, the process of
rehabilitation and in some cases also lost wages and even funeral expenses, for
this type of coverage it is important to provide all the checks and bill for
medical expenses. As for auto insurance in Canada
several Canadian provinces (British Columbia, Saskatchewan, Manitoba
and Quebec)
provide a public auto insurance system, while the rest of the provinces provide
private insurance. The basic auto insurance is mandatory throughout Canada, still
the government of each province defines which benefits are included as minimum
required auto insurance coverage and which benefits are options available for
those seeking additional coverage. The coverage itself is also different from
province to province, for example accident benefits coverage is not mandatory
in Newfoundland and Labrador.
While on the one
side car related laws and regulations are constantly being updated to handle
the growing number of accidents, alternative solutions for handling the
situation are also being developed and used. In 1994 a study conducted by
Jeremy Jackson and Roger Blackman showed that increasing the costs of one
accident leads to reduction of the number of accidents. A driver must
understand that and accident could not only lead to injuries or casualties, but
will also lead to compensations even after the smallest accidents. A modern
driver starts to pay for the possible accidents even before he gets behind the
wheel, with the means of Compulsory Insurance. Compulsory Insurance is one of
the insurance mechanisms that drivers must file proof of insurance and make a
payment before they receive their vehicle registration. Compulsory insurance is
used for two scenarios. First in case of an accident involving two or more
vehicles it covers the damages done to vehicles, irrespective of who’s in
responsible for the accident. It also covers the most common damages that can
occur from problems like theft, fire or vandalism.
