About Your Auto Policy
Your automobile insurance policy is an important source of protection and peace of mind for you and your family. There are various types of coverage, terms and requirements associated with an automobile policy.
What's Covered in an Auto Policy?
Most auto policies include the following as mandatory coverage up to certain limits:
Liability - This refers to your legal responsibility for use, operation or ownership of your vehicle to others on the road. Provincial minimum limits may vary.
Accident Benefits - These are the medical limits that will cover you and the occupants of your car if you are in an accident involving an automobile. They include medical rehabilitation, income replacement benefits and more.
Uninsured Motorist - This will protect you if you are involved in an accident with a vehicle that is not insured.
The following coverages are optional and subject to certain limits:
Collision - This is one component of Physical Damage coverage to the vehicle. Collision covers losses to the vehicle from impact with another vehicle, object or road surface from a rollover.
Comprehensive - This refers to another component of Physical Damage coverage to the vehicle. It covers losses resulting from theft, fire, vandalism, glass breakage, falling objects and more.
Loss of Use - This covers you for losing access to your vehicle while it is being repaired due to a claim. Under this coverage, you can rent a car temporarily to replace your damaged vehicle.
Questions about your auto policy? Contact your broker.
Auto Policy Terms
Deductible - This refers to the limit of the coverage that you, as an insured, will retain - pay out of pocket - in the event of a claim. For example, if you have a $500 deductible on the Comprehensive portion of your coverage, you will be responsible for the first $500 in damage from the loss.
Insurable Interest - The registered owner of the vehicle has the Insurable Interest in the vehicle, and only he/she is allowed to take out a policy and be financially compensated for the loss of that vehicle. Leasors and Lienholders (usually the company who has provided a loan to allow someone to purchase the vehicle) also have insurable interests.
Indemnity - This is a fundamental concept of insurance. It states that policyholders have the right to be compensated for their loss. Insurance strives to put people back into the financial position they were prior to the loss.
Named Insured - This refers to the person who is the registered owner of the vehicle to be insured. Only a registered owner of a vehicle is legally allowed to take out insurance.
Statutory Conditions - These are the rules under which the auto policy will operate. They outline the company's responsibilities for coverage and claims handling, as well as your responsibilities as a policyholder.