What Does Auto Insurance Cover in Calgary?
Insuring your car in Calgary with adequate coverage might turn out to be a tricky affair. Amidst the mandatory insurance coverage and too many optional policies and add-ons, it’s easy to land up in a dilemma.
While you have reputed insurance advisors like Surex in Calgary to bail you out of this trouble, it pays to know all your options. Depending on your profile, you need to get the right coverage.
In this context, it’s worth exploring the big question, “What does auto insurance cover?”. We have discussed the scope of this coverage in this article, explaining the benefits of each provision. Consulting your insurance broker, you can include some of these privileges into your policy.
Mandatory car insurance in Calgary
Before exploring the vast plethora of optional coverages and riders, it’s crucial to know the mandatory coverage drivers in Calgary should have. Failure to get the mandatory insurance can land you in legal trouble.
1. Third-party liability
Third-party liability coverage will help you cover the legal expenses and compensations you pay to others when you are at fault in an accident. Although no driver intentionally causes accidents, you might end up damaging others’ properties. Under severe conditions, the accident might inflict injuries and even death.
With third-party liability coverage in place, you can manage the expenses of your lawsuits. It’s recommended to have at least $2 million as liability coverage.
2. Accident benefits
Accident benefits coverage is mandatory in Calgary. In case of an accident, you might sustain injuries. With the accident benefits coverage in place, you can remain financially resilient while dealing with your medical treatments, income replacement, and funeral costs. The insurer wouldn’t consider who’s at fault when you have this mandatory coverage.
3. Uninsured vehicle coverage
Sometimes, you might be unlucky enough to be involved in an accident for no fault of yours. To worsen things, the at-fault driver might lack the mandatory insurance policy. This would prevent you from getting compensated through their policy. Also, in case of a hit-and-run accident, the culprit often goes unidentified.
So, how do you think you can compensate yourself for the financial losses as a fallout of these accidents? In Calgary, you should have a mandatory policy to cover yourself from uninsured automobiles. Even if you are involved in these unfortunate incidents, you won’t suffer a financial blow.
Optional car insurance coverage in Calgary
Most car owners prefer purchasing optional coverages in Calgary. These policies complement the mandatory policies to offer a more holistic vehicle coverage. Comprehensive automobile coverage and collision insurance are two of the most popular optional coverages for your car. Before discussing the add-ons, we have explained the scope of different optional coverages.
1. Comprehensive coverage
Car owners often have a question in common, “What does comprehensive auto insurance cover?”.
Well, a comprehensive insurance policy would cover all sorts of damage that your car might suffer as a result of natural disasters, fire, theft, or vandalism. This might also include damages that occur when you leave the car unattended.
Depending on the scope of the coverage, a comprehensive policy might include specific perils or all the perils. In case of a specific peril coverage, the policy would cover the perils you have selected.
For instance, you may select fire and flood as the dangers against which you decide to protect your property. On the other hand, all-peril coverage offers your car the broadest range of protection. Although you don’t specify the perils, you remain insured against all of them.
2. Collision coverage
While you sit at the steering wheel, you can never root out the chances of accidents due to collision. Your car may collide with different objects along the road or other vehicles. Even when you park your car, it might suffer damage due to a collision in the instance of a hit-and-run accident.
To secure yourself financially from expenses arising from such collisions, it pays to have collision insurance coverage in place. Under extreme situations, your vehicle might be mangled beyond recovery. In such cases, your collision coverage will help you replace your car.
Popular endorsements or add-ons in Calgary
Endorsements or add-on policies are privileges that you cannot purchase as standalone schemes. Depending on your risk profile, your insurance broker will recommend some add-on policies. These schemes work in sync with the main policy that you purchase. Some of the common add-on policies in Calgary include the following.
- Damage to a non-owned car: Suppose you decide to rent a car for a few days and end up damaging it while driving. With this add-on, you can cover the losses to your rented car.
- Loss of use of your car: Following an accident, your car might be unusable for a few days while in the garage. So, you might be shelling out additional transportation costs while using a different vehicle. A loss of car use policy would be a valuable add-on to go for.
- Depreciation waiver: If your car is brand-new, it’s logical to get a depreciation waiver. When you sell the car, you will get the full value of the vehicle.
- Accident forgiveness: Some of the top insurers in Canada offer accident forgiveness policies. So, if you are a new driver and cause an accident, it won’t go against you.
- Family protection coverage: At times, you might get involved in an accident where the other driver doesn’t have adequate coverage to compensate for your loss. With this add-on, you can have the provision of additional coverage when you’re not at fault.
What does auto insurance cover in Calgary? — Endnote
Well, we have comprehensively discussed the scope of different types of insurance policies in Calgary. If you have been wondering, “What does auto insurance cover in the city of Calgary?” you are now better informed to decide.
Reputed insurance brokers can help you narrow down the choice of optional coverages and endorsements. While you need to shell out a basic amount for a mandatory insurance scheme, you can try and save your money while getting additional coverage. Professional support from insurance advisors will put you on the right track.
Additional:
