Northwest Territories Car Insurance Optional Coverage

All drivers in the Northwest Territories are required to have a certain level of car insurance coverage in place. They can also choose from optional insurance coverage to protect their vehicle. The following coverage choices are offered to drivers in the Territories:

Collision: This type of coverage pays out when the damage to your vehicle is caused by striking another object or rolling over in an accident.
Comprehensive: Pays out when the car is damaged by something other than a collision, including losses due to fire, theft, and vandalism.
Specified Perils: This type of policy only pays out when the damage to your vehicle is caused by an event that is listed in the policy. You can buy coverage that protects against:

  • Earthquake
  • Explosion
  • Falling aircraft
  • Fire
  • Flood
  • Hail
  • Lightning
  • Theft/attempted theft
  • Wind

All Perils protection is also available, and it includes collision and comprehensive protection.

If you have financed your vehicle, the lender will probably require you to have collision and comprehensive coverage in place to protect its investment. Once the vehicle has been paid off, you may want to consider dropping the collision coverage and limiting the comprehensive protection to fire and theft only. These policies only pay out based on the cash value of your vehicle, not what you paid for it or the replacement value.

By lowering your optional Northwest Territories car insurance coverage, you can save money on your coverage costs. Be sure to consider your decision carefully before doing so; you want to make sure you have the right protection in place.