Understanding Your Auto Insurance
The Many Parts of an Auto Policy—Explained
For your reference, we have provided a quick and easy-to-understand overview of the types of coverage available.
Auto Insurance Liability (Section A)
Auto insurance has a minimum liability limit of $2,000,000. This coverage pays for injury to others and any damage to their property.
Auto Accident Benefits (Section B)
Section B is a mandatory coverage in Alberta and provides limited medical protection, death benefits, and lost wages.
Collision or Upset Coverage
Provides coverage for your vehicle in the event of impact with an object, another vehicle, or the surface of the ground.
Provides coverage for any loss other than by collision with another object or by upset, including loss or damage caused by missiles, falling or flying objects, fire, theft, explosion, earthquake, windstorm, hail, rising water, malicious mischief, riot or civil commotion.
Auto Family Protection Endorsement (sef 44)
This feature is mandatory and helps you when another party injures you in an automobile accident, and they carry inadequate insurance to compensate.
Auto Loss of Use Endorsement (sef 20)
Provides coverage for reasonable expenses incurred for the rental of a substitute vehicle or alternate transportation (Can be bus or taxi service) when the insured vehicle suffers an insured loss.
Auto Limited Waiver of Depreciation Endorsement (sef 43)
If you purchase a new vehicle, this provides coverage for up to two years and reimburses your purchase price (less depreciation for tires and batteries) of the vehicle for a total insured loss.
Auto Legal Liability for Physical Damage to a Non-Owned Automobile (sef 27)
This endorsement extends the physical damage coverage to a non-owned automobile, such as a rented or borrowed automobile. Coverage is only available on private passenger type vehicles to the named drivers on the policy, while in the care, custody, or control of the named insured for 30 days or less.
All Perils Coverage
This provides a greater range of coverage by combining collision or upset and comprehensive coverages. It also covers loss or damage caused by someone in your household or an employee stealing the vehicle. It is often optional but may be required if you finance or lease a vehicle.
This covers losses caused by pre-defined perils such as fire, theft or attempted theft, lightning, windstorm, hail, rising water, earthquake, explosion, a riot, and other specific events.