Nova Scotia Car Accident Insurance Primer
Car accidents happen regularly, from Halifax to Sydney to Yarmouth, Nova Scotia. Like the old saying goes, “mistakes happen”. So, if mistakes happen, car accidents happen. They go hand-in-hand. Most of the time car accidents are caused by a mistake from a negligent driver. To err is human. As long as humans are driving cars, accidents are going to happen. That is why car insurance is mandatory for all drivers in Nova Scotia. This is a good thing because odds are that you, or someone you love, will need it at some point.
Insurance is basically a contract between you and your insurance company. This contract protects you against specific risk or loss. When you pay your insurance premiums, you are in fact placing your money into a pool of money along with many thousands of other people. The insurance company will grow that pool grows through investments and then use the same pool to compensate for the claims of the few who have the misfortune to be in a car accident.
Every automobile used on a public roadway must be insured. In Nova Scotia, private non-government insurance companies provide all auto insurance. These insurance companies all compete for your business. They do this by using brokers, agents, and service representatives to sell their insurance policies.
An insurance broker sells insurance on behalf of a number of different insurance companies, and different brokers represent different companies. It’s always wise to ask a broker who and how many different insurance companies they will contact on your behalf. It’s a good idea to make sure that your broker has shopped around with many different insurance companies for the deal value for you.
An insurance agent usually represents a single insurance company but may deal with different types of policies on behalf of that company. To get the best value without using a broker, it’s advised that you shop around to agents of different insurance companies to find the best service and policy for you.
You should know that the lowest price isn’t always the best policy for you. You and your family may have specific needs that will come at a higher premium, but if an accident happens, you’ll be glad you’ve paid it. It is also wise to ask friends, family, and co-workers about their experiences and for their recommendations.
Some people with a poor driving history, or are in a high risk category, can have a hard time finding car insurance. Be sure to ask your insurance representative about the types of coverage they provide – regular, grey market, or facility association.
Regular market is for people who pose low risk. Grey market for people who are more difficult to insure. The Facility Association is the insurer of last resort, is for people who present the highest risk. Facility Association has the highest premium rates. For more information or questions about how insurance works in Nova Scotia, contact an experienced personal injury lawyer at Valent Legal.
