Definitions

Automobile Insurance – Definitions

Search through the ‘insurance terms’ below for an in-depth definition and explanation.

 

• SEF 44, Family Protection Endorsement

This coverage is a benefit that we consider an essential coverage. It protects you and your family from the risk of being injured by a motorist who is carrying insufficient liability insurance to compensate you for your injuries. The limit of liability available under your policy is equal to your own Third Party Liability limit. This benefit should form part of your policy. We consider this an essential benefit.

• Accident Benefits

This section of the policy protects you and your family from the immediate financial losses of an injury regardless of who is at fault in an accident. This section of the automobile insurance policy provides a variety of medical expense benefits, a small death benefit, and weekly payments, should you be unable to go to work. This coverage is also a coverage that you must carry by law and this benefit is automatically included in your policy. We must caution you however, that these benefits are minimal and are not designed to replace private accident and wage replacement programs you currently carry, and only apply when you have been injured as a result of an automobile accident.

• Collision

This coverage is sold with a deductible amount that is chosen for you. If you are carrying this coverage, the deductible amount payable by you is shown on the policy. Collision coverage is needed of you wish to provide coverage for damage to your own automobile should your automobile be damaged by an automobile accident or overturn. Even when someone else is at fault in an accident you may wish to use your own collision cover to repair your vehicle.

If you don’t carry Collision, you must negotiate with responsible parties and their insurance companies when hit by another driver and this can be difficult if there is some question over responsibility. Your own insurance company does not have rights or authority to negotiate on your behalf without this coverage. AND COLLISION COVERAGE IS NECESSARY TO REPAIR ANY DAMAGE DONE BY IMPACTING WITH AN OBJECT ON THE ROAD.

• Comprehensive

Comprehensive insurance repairs your car when it is damaged by circumstances other than by a collision; such as fire, theft, vandalism, glass breakage etc. If you carry Comprehensive coverage, your deductible amount is shown on the policy.

• All Perils

If you are carrying All Perils, it means that you are carrying both Collision and Comprehensive with one common deductible. All Perils coverage is often less expensive that Collision and Comprehensive purchased separately, as the Comprehensive deductible is usually higher.

• Specific Perils

If you are carrying Specific Perils, the deductible amount is shown on the policy. If you carry All Perils or Comprehensive, Specified Perils is automatically included at no charge. Purchased as an alternative to Comprehensive, Specified Perils is a lesser form of coverage, and does not provide coverage for as many types of damage. Notably, there is no vandalism or glass damage.

• Loss of Use

Unless this coverage is carried, your policy will not respond to the cost of renting a vehicle while you vehicle is undergoing repairs after an accident.

• Underage Operators

If you have someone in your household who is under 25 and is a regular occasional operator of the vehicle, you are obligated to report this information to your insurance company or Agent and have the policy amended for permission for such a driver.

• Uninsured Motorist

This coverage once was provided by the provincial government under their unsatisfied judgment fund. Claims for damage by uninsured vehicles are now settled under your own automobile insurance policy. In order to have cover trigger under this section of the policy, the vehicle that caused the accident must be “identifiable.” It cannot y a hit and run type of accident. The owner of the vehicle must be able to be identified, and there must be confirmation that the vehicle does not have any auto insurance at all.

• Driving for Compensation

If your vehicle participates in carpools or if you are receiving an income for driving passengers, please contact us; your policy may have to be amended.

• Vehicle Depreciation

All claims under an automobile policy are settled based on the current actual cash value of your automobile. If you purchase a new automobile, it possible to purchase a waiver of depreciation rider which will protect you from depreciation during the first couple of years you own the vehicle.

This review is not meant to replace our recommendation that you read your policy. This is a brief review of the most common coverage carried. Please do not hesitate to call of we can be of further assistance to you.