In provinces with government automobile insurance plans, what role does extension insurance serve?

Extension insurance in provinces with government automobile insurance plans serves to enhance the basic coverage provided by these government plans. It typically allows policyholders to increase their insurance limits or reduce their deductibles, offering them additional protection that the government insurance does not cover or that may be insufficient for their needs. This can include higher liability limits, comprehensive coverage for non-collision related damages, or greater protection for personal belongings in the vehicle.

While lowering premiums for all drivers might be a benefit associated with better overall insurance practices, it does not specifically describe the direct role of extension insurance. A mandatory requirement under law pertains to basic coverage, not extension insurance. Lastly, extension insurance is not limited to coverage for commercial vehicles; it is available for personal vehicles as well, allowing individuals to customize their coverage as necessary.