What is auto insurance?
An auto insurance policy is a contract between you and an insurance
company. You pay a monthly charge, termed a premium, and in exchange,
the insurance company promises to pay for specific car-related
financial losses during the term of the policy. Insurance is a
mandatory part of owning and operating a vehicle in Canada.
Why do I need it?
In Alberta, to drive (and get license plates) you must carry:
Liability coverage to pay for losses you cause others, or:
Comprehensive coverage to pay you and your passengers for
medical and related expenses caused by injuries from a car
accident, regardless of fault.
What types of auto insurance do you offer?
Holly-Gordon offers full coverage on a wide variety of automobiles
and related vehicles you can obtain insurance on the following;
What affects the price?
What you pay for auto insurance varies by company and by:
What you buy. Policies are priced individually
so how much you'll pay depends upon:
(1) How many coverages you buy, and:
(2) How much each policy will pay. Deductibles lower the price
by shifting part of a loss to you.
What kind of car you drive affects how much
you pay, since coverage on your vehicle depends on its value.
Generally, the more expensive the car, the more you pay.
Where you drive. Drivers tend to have more
losses if they live where there's a high rate of accidents
or vandalism. Generally, urban drivers pay more for insurance
than those in small towns or rural areas.
How much you drive. The chance of an accident
generally increases as driving increases. People who use their
car for business and long-distance commuting normally pay
more than those who drive less.
Your age, sex, and marital status. Accident
rates are higher for all drivers under age 25, especially
young males and single males. Insurance prices in most states
reflect these differences.
Your driving record also affects price.
Drivers who cause accidents generally must pay more than those
who are accident-free for several years.
What can I do to reduce the cost of my premiums?
If you're shopping for a car, consider how your choice will
affect premiums. Some insurers increase premiums for cars
more susceptible to damage or occupant injury, and lower rates
for those that fare better than the norm.
