It is somewhat surprising the big difference between different prices of car insurance packages in Canada and United States. We are talking about two countries with a long tradition in the insurance area, countries with citizens that are insured against almost any kind of danger. However, if you ask for the insurance quotes from USA and Canada, you will observe a significant difference. Let’s analyze this situation and determine why the insurance quotes in Canada cost double than the insurances in USA.
The basic USA insurance for your car will only cover the basic costs resulted from an accident. This means the repairing of the damaged car, and maybe medical covering. The basic package in Canada for the same accident includes repairing on both cars, medical coverage for all the persons involved in the accident, and even covering for potential losses resulted from a temporary loss of the working capacity. As for reliability, all the companies working on Canadian territory must comply with the local regulations, and sometimes those regulations are strict. The basic Canadian insurance covers all the needs, while the American one only covers the basics.
This fact is also confusing for the US citizens visiting Canada. While they will feel safe just because their US policy is also valid on the Canadian territory, their policy might be useless in case of an accident. Sure, the policy will cover potential damages to the car of the other driver involved in an accident caused by you, but what about the medical care and your car? Well, if you want to be completely covered on Canadian territory with insurance from the US, you will have to take the additional insurance offered especially for those situations.
The price of the insurance policy in USA and Canada are also influenced by other factors. The USA policies have strict regulations against theft, while the Canadian policies don’t have such strict policies about this matter. This is because criminality on the Canadian territory is not as high as it is in some US states.
If you need to travel between those countries often, you might contact your insurance company for advanced insurance options. You will find a complete policy to cover all the risks resulted from a potential accident in both countries. This kind of policy is usually issued by insurance companies having offices in Canada and USA, as those companies could easily adjust their contract policies to comply with those demands.