Auto insurance for individuals and companies is mandatory in every Canadian province and territory. In British Columbia, Saskatchewan and Manitoba, primary auto coverage is sold through government-run insurance companies. Private and government insurers then compete to sell additional coverage options. Elsewhere, auto insurance is sold through private insurance companies.
Be aware that each provincial and territorial government has specific auto insurance requirements and minimums. Auto insurance coverage and policy language can be complex and difficult to decipher. The following general terms apply to auto insurance.
Third-Party Bodily Injury Liability (BI) covers injuries that you, the designated driver or policyholder (i.e. your organization) is alleged to cause to someone else. Claims for bodily injury include medical bills, loss of income, or pain and suffering. It does NOT cover the cost of damage to your organization’s vehicle. It is mandatory in all provinces; however minimums differ from province to province. It also provides you with legal defence if another party files a lawsuit against you.
Third-Party Property Damage Liability (PD) covers you or someone driving the auto with your permission if the vehicle damages someone else’s property. Typically the property is another vehicle but it could be a fence, telephone pole, house, etc. It also provides you with legal defence if another party files a lawsuit against you.
Accident Benefits coverage can provide medical expenses, income replacement and other possible benefits to you and your passengers injured in an accident. Depending on where you live, this coverage may be mandatory.
Other types of auto coverage to consider include medical payments insurance, accident benefits, funeral expense benefits, disability income benefits and death benefits.
Picking a higher deductible can help lower your auto insurance premium. However, the higher the deductible, the more you pay out of pocket if you have a claim. When deciding on your auto insurance deductible, take into consideration your organization’s available cash, the value of the vehicle(s) and your tolerance for risk.
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Our advocates can help ensure you have the right auto insurance for where you live and secure the best products, services and solutions for your organization.
Source: IRMI
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