Calgary Auto Insurance

Anytime you get behind the wheel of a vehicle, it is possible that you may cause damage to other people’s property, or injure – or even kill- yourself, other drivers, passengers, or pedestrians. Most people don’t have the financial well being to pay for the losses (property damage, injury, death) they might cause while driving, so governments require drivers to carry a certain amount of insurance to ensure that their drivers can cover the cost of damages to people or property in the event of a vehicle accident.  Some governments also require drivers to carry coverage for their own medical expenses and loss of income resulting from driving related injuries.

The following is a brief description of some of the more common auto insurance coverages.  We always suggest that you review your coverages with your agent to ensure that you are adequately covered.

Liability Coverage
Liability insurance covers claims against the policy holder and generally, any operator of the insured vehicles on the policy.  The amount of coverage provided will vary from jurisdiction to jurisdiction.  Whatever the minimum, the insured is able to increase the amount of coverage for an additional charge. However, it is not smart to save a couple of dollars here by skimping on your maximum liability coverage, as any damages over your limit, will be your responsibility to pay.  That means if you only have $200,000 liability, and you cause $500,000 worth of damage and medical bills, you would be on the hook for the other $300,000.

Collision coverage provides coverage for an insured’s vehicle that is involved in an accident, subject to a deductible (typically can be $250, $500, and $1000).  This coverage is designed to provide payments to repair the damaged vehicle, or payment of the cash value of the vehicle if it is not repairable.  Collision coverage is optional, but if your vehicle is worth more than your deductible, you might want to consider this coverage in order to protect you against financial hardship.  However, if you plan on financing or leasing a vehicle, the lender will usually insist that you carry collision coverage.

Comprehensive coverage provides coverage, once again subject to a deductible (typically can be $100, $250, and $500) to your vehicle that is damaged by incidents that are not considered collisions.  Some of these damages include : fire, theft of the vehicle or attempt thereat, explosion, earthquake, windstorm, hail, flood, and vandalism.

Medical Payments/Disability/Death/ Uninsured & Underinsured Motorist Coverage
Most auto insurance policies also provide coverage should you, a passenger, or a third party, be hurt, disabled, or killed in a vehicle accident.  Auto insurance policies can also provide coverage if an at-fault party either does not have insurance, or does not have enough insurance.  Limit of coverage and premiums vary by jurisdiction. Get your automobile insurance quote today.



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