To own a car and drive on Canadian roads, you must have active car insurance. Car insurance is mandatory for motorists and offers legal protection in the event an accident occurs. Typically, car insurance policies are offered on an annual basis. Other insurers offer car insurance policies on terms of six months. It is extremely difficult to find car insurance that spans less than 6 months. If you’re a motorist and need coverage in Edmonton at reasonable rates, Surex can provide you exactly that.
Several situations demand that motorists prefer to buy temporary car insurance rather than long-term insurance. We have a look at the categories of people that require temporary car insurance in Edmonton.
Tourists visiting Canada who choose to drive rather than rent a car. Tourists staying for a month and beyond will find it economical to self-drive rather than rent.
During the transfer of ownership of a car, it is mandatory to have an active temporary license plate. Equally, you must have active car insurance during the transfer of ownership to be in a position to drive the car. Temporary car insurance is required until completion of the process to acquire a permanent license plate. If you will be transporting the newly purchased car into Edmonton from another province, you will be required to have temporary car insurance.
Younger drivers especially those under the age of 21 years who don’t drive frequently but will from time to time borrow a car from relatives or friends.
People relocating to Edmonton from another province will require temporary car insurance before finally getting their new license plates. You can also opt for car insurance coverage valid for as little as a single day especially when shifting to a new home.
If you will be renting a car, you need to get temporary or short-term car insurance before getting to drive the car on the roads. In most cases, the rental car bundles temporary car insurance together with your rental car fee or provides it through their fleet policy. Where no insurance is provided by the rental car company, you are required to get temporary car insurance for the rental.
If you plan on borrowing a car from a friend or colleague at work, you also need to get temporary car insurance. The same applies to people that need to test drive a new car.
People who drive classic cars or sports cars occasionally perhaps as a second vehicle should think about temporary car insurance which can meet their needs in terms of convenience and affordability.
Learner drivers are yet another category of people that will need temporary car insurance to meet their needs and fulfill the requirements of the law.
The following are some of the areas of coverage provided by temporary car insurance:
- Coverage for damages to the vehicle caused by fire, vandalism, and theft of car components.
- Coverage for damages to the vehicle caused by an accident.
- Coverage for the replacement with a new car, accident recovery costs, and other repairs.
- Coverage for injuries suffered or death of another person during an accident that involves an insured car.
- Coverage for the damages caused to another person’s car or property during an accident that involves an insured car.
How to Get Temporary Car Insurance in Edmonton, Alberta
Alberta doesn’t have government-issued car insurance just as there’s non-issuance of temporary license plates. The law has a provision that people may use the existing license plate but must have a special in-transit permit. The existing plate and registration can only be used for a maximum of 14 days after buying a new car.
Surex will require the following details when you are buying temporary car insurance:
- Personal details
- Information about the car
- Valid driver’s license
- Duration of coverage
- Date when you want the coverage to commence
- Credit or debit card information
- Any additional coverage features that you may want to purchase
In-transit permits can be used to register your car temporarily and as such will require that you provide proof of insurance. The 14-days in which you can use the in-transit permit don’t apply for the duration of car insurance validity. A majority of car insurance providers in Edmonton do not provide temporary car insurance. The available options are annual terms and 6-month terms for car insurance policies.
So what happens? You are compelled to purchase the 6 monthly car insurance policy since it is near impossible to find temporary car insurance for less than six months. When you cancel the car insurance midway through, the insurance provider will calculate a refund on a short rate basis.
The cancellation of a car insurance policy is not as easy as it sounds. An early cancellation should be communicated via available channels such as through an agent or directly with the insurer. You will earn a negative score if you stop paying the car insurance premiums and your policy voids. This is considered high-risk behaviour which makes you end up being classified as a non-payer or defaulter and resulting in placement in the high-risk category. Avoid letting your car insurance policy lapse due to non-payment of premiums on time.
Cancelling should be the way to go especially if you no longer need temporary car insurance. Cancellation is done through a written notice to your agent/broker or the insurance provider before the expiry of the policy or the date of cancellation. An administrative fee can be levied for early cancellation –before the expiry date. Depending on the insurance provider, your refund may be calculated using the short rate method or the prorated method. Using the proper channels to cancel your car insurance will prevent your insurance rate from increasing in the future. It serves to eliminate any gap in car insurance ownership that affects your insurability. Always talk to your insurance agent to find you the best rates for temporary car insurance that meets all your needs.