Auto insurance isn’t one-size-fits-all. In Alberta, various types of auto insurance offer different types of coverages. Determining which type you should purchase is a matter of understanding what they all entail and choosing which one suits you best. To make it easier for you, here’s an overview of the different types of auto insurance options available in order to make an informed decision.

BASIC COVERAGE

Personal Liability and Property Damage Insurance

Also called Third-Party or One Way coverage, this coverage is legally mandatory for all drivers in the province of Alberta. It’s a legal guard to cover any damages caused by your vehicle to another person or their property. The province required a minimum of $200,000 of coverage, but 1M or 2M is the norm.

Accident Benefits

Accident benefits are also required legally, they cover the passengers of a vehicle in the event of injury or death – regardless of who is at fault – including medical and rehabilitation costs, funeral expenses, death benefits and income replacement. It also includes uninsured motorist coverage, which protects you in the event of an accident with an uninsured driver.

ADDITIONAL COVERAGE

Collision Coverage

This type of insurance pays for repairs to your vehicle if you’re involved in an accident with another vehicle or object. This type of coverage pays for repair or replacement regardless of whether or not you’re at fault.

Specified Perils

This insurance isn’t as broad as Comprehensive insurance but offers more protection that collision. It provides coverage for damages caused by the perils that have been specified in the policy that aren’t the result of a collision, like theft or fire. If damage is caused by a non-specified peril, it won’t be covered.

Comprehensive Insurance

Comprehensive insurance covers damages to your vehicle that were not the result of a collision. It includes protection against instances such as fire, theft, vandalism and environmental-weather related damages. As the name suggests, comprehensive insurance offers the greatest range of coverage of any other type of auto insurance policy.