As president of KBD, Curtis aims to simplify insurance for his clients. He’s helped lead KBD to become one of Canada’s fastest 400 growing companies according to the Globe & Mail.
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Private car insurance vs. public car insurance in Canada. What’s the difference? Depending on the province or territory you live in, your car insurance will be under one of these two systems, and in some cases – both. In this post, we’re explaining how it works, and how it might affect you.
So, what is private car insurance?
Depending on which Canadian province you live in, your car insurance will be through a public organization or private car insurance company.
For example, in British Columbia, Saskatchewan and Manitoba, residents are insured through public car insurance with the provincial governments.
On the other hand, residents in Alberta, Ontario, Quebec, the east-coast provinces, as well as the territories get their car insurance through private insurance companies.
In this post we’re explaining the private and public car insurance systems in Canada, including how they work and which provinces they apply to.
If you simply need a car insurance quote, we can help with that too.
Click ahead to learn what you need:
- What is private car insurance?
- Does Canada have private car insurance?
- What is public car insurance?
- The difference between public & private car insurance
What is private car insurance?
The coverage options from private and public car insurance policies are essentially the same.
Private car insurance is simply coverage obtained from private insurance companies, as opposed to public insurance programs which are government operated.
Examples of private car insurance companies include Intact, Economical, The Co-operators, and more.
We’re breaking down how it works in each province below.
Does Canada have private car insurance?
Yes, Canada does have private car insurance options available in addition to public insurance programs, depending on which province you reside in.
Here’s a quick breakdown of private and public car insurance by province:
- British Columbia: Public car insurance through Insurance Corporation of British Columbia (ICBC)
- Alberta: Private car insurance.
- Saskatchewan: Public car insurance through Saskatchewan Government Insurance (SGI)
- Manitoba: Public car insurance through Manitoba Public Insurance (MPI)
- Ontario: Private car insurance.
- Quebec: Hybrid private car insurance & public through the SAAQ.
- New Brunswick: Private car insurance.
- Nova Scotia: Private car insurance.
- Newfoundland and Labrador: Private car insurance.
- Prince Edward Island: Private car insurance.
- Nunavut: Private car insurance.
- Yukon: Private car insurance.
- North West Territories: Private car insurance.
Car Insurance in Canada:
- Coverage Options: Private car insurance in Canada offers a wide range of coverage options beyond basic insurance requirements.
- Cost Considerations: The cost of private car insurance varies based on factors like driving history, location, and coverage preferences.
- Availability: Private car insurance is available across Canada and provides drivers with flexibility and customization options.
Private car insurance companies compete for residents’ business, whereas public car insurance automatically overtakes market share.
So, if you live in a province with private car insurance, you have the option of shopping around in order to find the right coverage at the best price.
Note: In provinces with public car insurance, you can still opt to purchase additional coverages from private car insurance companies. This can be beneficial if you are looking for specialty coverages through a particular company, for example.
Keep reading to learn about public car insurance in detail.
Need car insurance in Quebec or Ontario?
What is public car insurance?
As mentioned, public car insurance is provided by the provinces of British Columbia, Manitoba, and Saskatchewan.
These provinces have government-run insurance programs that offer basic mandatory auto insurance coverage to drivers.
Public car insurance is mandatory in provinces where it’s offered.
It provides basic coverage for personal injury and property damage resulting from car accidents.
Key points about public car insurance:
- Mandatory coverage: In provinces with public car insurance systems, drivers are required by law to purchase basic insurance coverage from the government insurer.
- Basic coverage: Public car insurance typically covers personal injury benefits, third-party liability, and property damage arising from accidents.
- Supplementary coverage: Drivers can purchase additional coverage options beyond the basic insurance provided by the government insurer. This can be through the public insurer, or through private car insurance companies.
Private vs public car insurance: Understanding the difference
So, what are the key differences between public and private car insurance?
Understanding the differences between private and public insurance options can help you make informed decisions when selecting coverage for your vehicles, especially if you’re moving to a new province.
Private Car Insurance
Some of the biggest private car insurance companies in Canada include Intact, Economical, AllState, CAA Insurance, and Aviva.
Private car insurance is coverage provided by private insurance companies. It offers customizable policies tailored to individual needs, providing a range of coverage options beyond basic insurance requirements.
Read our full round up of Canadian car insurance companies here.
Key points about private car insurance:
- Customized coverage: Private car insurance policies allow drivers to tailor coverage to their specific needs, including options like collision, comprehensive, and additional endorsements.
- Flexibility: Private insurers offer flexibility in coverage limits, deductibles, and policy features.
- Cost variation: The cost of private car insurance varies based on factors such as driving history, vehicle type, and coverage levels.
Public Car Insurance
Public car insurance is provided by provincial governments in some provinces, including British Columbia, Manitoba, and Saskatchewan. It offers basic coverage mandated by provincial laws.
Key points about public car insurance:
- Mandatory coverage: In provinces with public insurance systems, drivers are required by law to purchase basic coverage from the government insurer.
- Basic coverage: Public insurance typically covers personal injury benefits, third-party liability, and property damage resulting from accidents.
- Government-run programs: Public insurance programs are operated by provincial governments and offer standardized coverage options.
In conclusion, while private car insurance is available in most provinces across Canada, some provinces operate government-run public insurance programs.
Wrap-up
So there you have it:
Whether you will be purchasing through a private car insurance company or a public car insurance organization simply comes down to where you live.
Both private and public provide the same coverage options so that you can stay safe on the road.
All in all, it’s good to understand the difference between the two, particularly if you are planning to move provinces.