THIRD PARTY LEGAL LIABILITY (Section A)
This section provides coverage up to the dollar amount you have chosen. This is the amount of protection you have if someone sues you because your vehicle injures or kills someone else or damages their property. In Alberta you are required to buy a minimum of $200,000 of coverage, but up to $5,000,000 is available. Our office writes standardly $2,000,000 for Liability as there are so many claims reaching up to and over that common $1,000,000 coverage. The cost is minimal and the benefits are huge.
ACCIDENT BENEFITS (Section B) Sometimes called the “no fault” portion of your policy
Accident benefits are paid to you, your passengers, or pedestrians who suffer injury or are killed in an auto accident, no matter who is at fault. These benefits include limited income replacement for the time you are unable to work, supplementary medical services (beyond what your medical insurance plan covers), death benefits for families who lose a family member in a car crash and funeral expenses up to a set limit.
LOSS OR DAMAGE TO INSURED AUTOMOBILE (Section C)
We offer three coverages in this section and they are optional – you don’t have to buy them – but without them your car is not protected from collisions, vandalism, theft, etc. Most people buy Collision and Comprehensive coverage.
- Collision insurance pays for damage to your vehicle if it collides with another vehicle, object or person. The coverage pays to repair or replace your vehicle whether you are at fault or not. If you’re not at fault, we attempt to recover any payout from the at fault party. Collision insurance also covers rollovers.
- Comprehensive insurance covers loss or damage to your vehicle by any cause except what is covered under Collision. Windshields are paid for under this coverage. In Alberta you can have glass coverage limited, reducing your premium significantly. Other typical losses are due to theft, vandalism, impact with animals, and fire.
- Specified Perils insurance covers damages caused by fire, lightning, theft or attempt thereat, windstorm, earthquake, hail, explosion, riot or civil commotion, falling or forced landing of aircraft or parts thereof, rising water, or the stranding sinking, burning, derailment or collision of any conveyance in or upon which the vehicle is being transported on land or water.
Each of the coverages under Section C has a deductible. This is the amount you pay before your insurance pays. If your loss is less than the deductible, you will have to pay it yourself. The greater the deductible, the less your premium will be.
There are many endorsements that can enhance your coverage such as SEF 39 which will waive any first at fault accident you have while carrying this endorsement. Other useful coverage would be Waiver of Depreciation, SEF 43R or 43L available on new vehicles with less than 5000 kms at the time of purchase; SEF #20 provides you with loss of use in the event of a loss; SEF #27, often termed as Rental vehicle coverage which will provide you with insurance coverage on the rental vehicle….whether you are renting for a holiday or renting due to a loss