Proper car insurance at affordable rates

What Does an Auto Insurance Policy Need to Include?

Insurance policies can vary from one person to another. Here, Capital Insurance Brokers has gathered information on some of the most common insurance coverages you will need in order to legally drive your vehicle:

Liability

Liability refers to the total amount of money (according to your policy) your insurance company pays out when you have been in a vehicle accident and are held legally liable for the other driver’s and their passengers’ injuries, as well as the damage to another person’s vehicle or property. Above the money limit in your liability policy, you are responsible for paying. That’s why, nowadays, most Albertans’ liability insurance is for $1 million or above. Furthermore, policies with higher limits ($2 million or more) are gaining in popularity.

Accident Benefits

Accident Benefits cover certain medical and death expenses not covered by your provincial health plan. This type of insurance also includes loss of income that resulted from your vehicle accident. Depending on which province you live in, you may find yourself entitled to additional benefits if you are a caregiver. Accident Benefits are paid no matter who was at fault for the accident.

Additional Coverages

You may want additional coverage to ensure you’re fully protected in the event of an automobile accident, fire, theft, or collision with an animal. Below are brief summaries of some of the most popular coverage options to consider.

Family Protection Endorsement

If you’re involved in an accident, Family Protection Endorsement is a benefit you receive when the other driver has less insurance coverage than you and cannot pay a claim for injury or death.

Collision

In the event of a collision where you are partially or totally at fault, this insurance coverage handles the cost of repair or replacement of your vehicle.

Comprehensive

With this option, you’re covered for a myriad of perils other than collision, including fire, theft*, vandalism, hail, and impact with an animal running across the road. The important thing to remember is that this coverage applies to your vehicle only, not you or your passengers or any personal contents left in the vehicle.

Please note that comprehensive coverage does not cover theft of your vehicle by a member of your household or an employee whose job involves using or maintaining that vehicle.

Loss of Use

If your vehicle is damaged, stolen, or destroyed, Loss of Use covers temporary transportation costs including renting a vehicle or taking a bus. Your coverage is up to the maximum amount specific in your policy until your vehicle is repaired, recovered, or replaced.

Legal Liability for Damage to Non-Owned Automobiles

If you damage a rental vehicle in your care or control, this type of endorsement covers the expenses.

Accident Forgiveness

Accident Forgiveness is a type of coverage on your policy that forgives your first accident. This means that the rates for your car insurance in Edmonton won’t rise. Please note that this is only for individuals who have been licensed and accident-free for six years.

Limited Waiver of Depreciation

If your new car has been damaged in an accident beyond repair and has to be replaced, Limited Waiver of Depreciation protects you against the value loss or depreciation of your new vehicle. This type of coverage is only offered during the first two years of your vehicle lease or ownership. With this waiver, you may receive an amount up to the price paid to purchase or lease the vehicle or an amount based on the manufacturer’s suggested price.