Yukon Car Insurance

The word “Yukon” still calls to mind images of the Gold Rush when thousands of prospectors raced to stake claims and make their fortune around the start of the Twentieth Century. Documented by authors Jack London and Robert Service, this romantic era is still a draw for tourists, along with the untouched wilderness that still dominates the territory.

Tourism comes in second behind mining in the Yukon economy, and there is a strong manufacturing sector as well, particularly in furniture and clothing. Hydroelectricity supports the industrial infrastructure, and the government employs almost half of Yukon’s workforce.

The Business Corporations Act of 2015 seeks to spur new interest in enterprises in Yukon. The Act opened up business flexibility in part by allowing directors in companies more freedom to embark on new pursuits.

Riverboats, usually between Whitehorse and Dawson City, were a transportation fixture until the 1950s. The major land routes now include the Alaska Highway, the Klondike Highway and the unpaved Dempster Highway, which connects Inuvik in the Northwest Territories to the Klondike Highway. Most communities are supported by local air travel as well, and some far north towns are only accessible by air.

How Car Insurance Works in Yukon

Each of the territories uses a private insurance system that has a modified no-fault model. The coverage itself is mandatory to operate a motor vehicle on Yukon roads, and minimum coverage amounts are required to qualify a car insurance policy. Collision and comprehensive coverage, to protect against loss or damage to a vehicle, is optional, but many drivers carry some combination of this coverage, adjusting the overall cost of their premiums by raising or lowering the deductibles for these sections which in turn lower and raise premiums, respectively.

Mandatory Car Insurance Coverage in Yukon

  • Third Party Liability – as with most plans in Canada, minimum coverage is set at $200,000. Most motorists choose to increase this coverage to $1 million, given the cost of typical settlements for car accidents. Third party liability insurance protects a driver against tort-based aspects of Yukon’s insurance system, where an at-fault driver can be sued for certain costs.
  • Accident Benefits – these benefits provide the no-fault portions of Yukon’s auto insurance. Medical, rehabilitation and loss of income payments are made under this part of the policy, ensuring everyone in the territory receives similar protection in case of an accident.
  • Uninsured Motorist Insurance – Hit and run accidents, where the other driver is not identified, and collisions involving uninsured vehicles are covered against loss in this portion of mandatory Yukon coverage.
2018-09-16T19:40:01+00:00