In conjunction with our previous post, Insurance 101 Part 1, there are additional auto insurances to be aware of to protect you, your passengers and family.
It is important to understand what car insurance in Alberta covers so you can understand all the different ways to protect yourself and be aware of.
Having covered the basics of auto insurance coverage and some optional insurance coverages for your vehicle, in this post we’ll cover additional optional insurance coverages to be aware of.
Limited Waiver of Depreciation
This type of insurance will protect your brand new vehicle should you have a claim.
If you were to get in a vehicle accident or there is a claim such as fire or theft, this optional insurance would protect your brand new vehicle from depreciation. If your vehicle was a total loss, you would receive a brand new vehicle, if your vehicle required repairs, this would ensure brand new parts would be used to repair your vehicle.
This is a very popular type of insurance for new vehicle owners. If you were not to purchase this insurance, the insurance company would provide you with a dollar amount based on depreciation of your vehicle.
Once you drive a brand new of the dealership lot, your new vehicle depreciates in value significantly. Protecting your vehicle with this type of car insurance will protect your investment.
However, there are some limitations so please check with your insurance broker.
Loss of Use
If you were to be in a car accident due to a collision or comprehensive claim, this type of insurance would cover you for the cost of a rental vehicle while your vehicle is being repaired or recovered depending on the type of claim you have.
Please keep in mind most insurance companies will set a daily limit for rental vehicle or transportation costs while you are without your vehicle.
Depending on your situation, there would be many reasons to add storage insurance to your vehicle. Maybe you are travelling out of town for some time, driving a seasonal vehicle such as a sports car, or you simply do not need to drive your vehicle.
Storage insurance protects your vehicle when it is parked on your property or in a storage facility. Whatever you choose, adding storage insurance will protect your vehicle from comprehensive coverages as well as collision.
If you were to be involved in an accident and the at fault party didn’t have insurance or enough insurance to cover the costs of your claim.
There are several ways to protect yourself and family from financial burden due to an insurance claim. We strongly recommend you speak to your auto insurance broker and the best coverages to suite you.
For specific explanations on optional insurance coverage please see our Common Endorsements page.