Auto Insurance – FAQ
What is “Section A” Third Party Liability?
To drive in Alberta this auto coverage is mandatory. This covers you for injuring or damaging the property of someone else, in other words, a “third party”. The usual liability coverage for an auto policy is $1 million or $2 million. We recommended $2 million.
What is “Section B” Accident Benefits?
If you are injured in a motor vehicle accident, the first option you should consider for assistance with medical and treatment expenses is Section B of your automobile insurance policy. Section B is referred to as no-fault because the benefits available under this section are provided on a no-fault basis. This means that you are entitled to benefits even if you are responsible for the accident. It also means your insurance premiums will not go up as a result of making a Section B claim.
Section B benefits consist of three categories of accident benefits: medical benefits, death and disability benefits, and benefits for accidents occurring outside Alberta in a no-fault jurisdiction.
You are entitled to coverage for all reasonable expenses incurred as a result of injuries suffered in the accident, up to $50,000.00 incurred within 2 years from the date of the accident. This includes expenses for necessary medical, surgical, chiropractic, dental, hospital, psychological therapy, physical therapy, occupational therapy, massage therapy, acupuncture, professional nursing and ambulance services and other related rehabilitative services, supplies, and treatment. Certain services are capped at fixed dollar amounts:
- Chiropractic treatment: $750
- Massage therapy: $250
- Acupuncture: $250
Uninsured Motorist Coverage provides compensation to you for up to $200,000 if you are injured or killed through the fault of a motorist who “hits and runs” or who has no insurance.
What is “Section C” Loss or Damage to Insured Vehicle?
This coverage is optional and protects your vehicle from collisions, vandalism, theft, etc. The section C coverage divided in to two types of coverage:
- Collision coverage 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 other motorist’s insurance.
Collision coverage can be of great benefit to you should someone else damage your vehicle. You can make a claim on your insurance policy and your insurance company will look after the repair of your vehicle. In general it will be considered as a “not at fault claim”. If you do not have “collision” coverage you will have to deal directly with the third party and their insurance company to arrange the repair and or replacement of your vehicle.
- Comprehensive coverage covers loss or damage to your vehicle by any cause except what is covered under Collision. Typical covered losses are due to theft, vandalism, impact with animals, and fire.
Each of the above coverage’s under Section C has a deductible. This is the amount you pay before your insurance will pay out.
Optional Auto Coverage (Endorsements)
Replacement Cost Endorsement (SEF 18)
Provides replacement value for a brand-new vehicle if your vehicle is in an accident and deemed to be a total write-off. You must be the original owner of the vehicle.
Loss of Use (SEF 20)
Provides coverage for the rental of a vehicle or the use of taxicabs and public transportation in the event your vehicle is damaged and being repaired due to a loss covered by your insurance policy. You are covered up to the limit stated on your policy, or until your vehicle is repaired.
Legal Liability for Damage to Non-Owned Automobiles (SEF 27)
Extends the physical damage coverage and deductible that you have on your personal vehicle to a rental vehicle. This endorsement provides physical damage coverage only.
Limits apply – check with your broker
Limitation to Automobile Sound and Electronic equipment (SEF 37)
Limits coverage of sound equipment/electronic equipment (eg stereo, GPS, etc) to $1500
Family Protection (SEF 44)
Protects you and family members in your vehicle if you are involved in a collision with an uninsured or underinsured driver. Even though you may have the right to collect money from an at-fault driver to reimburse you for your claim, if that driver doesn’t carry enough insurance or has no insurance at all, your claim may not be fully paid. SEF 44 pays the difference between your claim amount and the third party liability limit of the at-fault driver’s policy, up to your own third party liability limit.
Limited Waiver of Depreciation (SEF 43)
Provides replacement cost coverage without depreciation for 30 months for a new vehicle when in an accident where the vehicle is written off. (Up to the amount paid for the vehicle)
Accident Forgiveness (SEF 39)
Accident Forgiveness protects you from a rate increase as a result of your first at-fault or partially at-fault accident claim. Contact your broker to see if you qualify for this coverage.
If your vehicle is damaged by a hit and run driver, make sure you file a police report within 24 hours. Many insurance companies will waive the deductible for a hit and run if there is a police report filed within 24 hours.