Auto Insurance

The insurance company agrees to pay on your behalf sums that you become legally liable to pay for property damage or bodily injury caused arising out of the ownership, use or operation of the insured vehicle, including any drivers who are given permission but not listed on your policy to operate your vehicle. This coverage is mandatory and often referred to as ‘PLPD’ (Personal Liability Property Damage).

The insurance company pays for medical aid required after an injury results from a car accident. This coverage is compulsory and covers the named insured, his spouse and dependent relatives. There is also payment available for the loss of income, death and funeral benefits.

Direct Compensation for Property Damage (DCPD) was introduced as part of the Automobile Insurance Reforms announced in October 2020. DCPD replaced the property damage portion of the third-party liability coverage on a driver’s auto insurance policy effective January 1, 2022.

The main intent of this change is to provide Alberta drivers with an efficient way to process vehicle damage claims.

If a driver is in an accident, they will work directly with their insurance company instead of the other party’s insurance company. This allows for a more efficient and customer-focused claims process. DCPD is part of the mandatory coverage for Alberta drivers.

DCPD changes who pays, not what is paid for.

• All Perils: This the broadest form of physical damage coverage and will cover all direct and accidental loss or damage to the automobile, including its equipment, subject to policy exclusions. A policy deductible applies to this coverage.
• Collision: Pays to repair damages caused to the insured automobile caused by collision with another object or upset, subject to the policy exclusions. A deductible applies to this coverage.
• Comprehensive: Pays to repair damage from any peril other than by collision with another object or upset (ie. fire, theft of your entire vehicle, hail, lightning, flood). A policy deductible applies to this coverage
• Specified Perils: This coverage pays to repair damages caused by the following specific events: fire, lighting, theft or attempt there at, windstorm, earthquake, hail, explosion, riot. A deductible applies to this coverage.

• SEF 13D (Limited Glass): This endorsement excludes claims for damage to the windshield unless the damage is caused by fire, lightning, theft or attempt there at, windstorm, hail, earthquake, explosion or riot
• SEF 20 (Loss of Use): This endorsement covers reasonable expenses that may be incurred for the rental of a replacement vehicle, taxi or public transportation, while the insured vehicle is being repaired or replaced due to an insurance claim. Subject to the limit of coverage purchased. 
• SEF 27 (Liability for Non-Owned Automobiles): This endorsement provides coverage for loss or damage to certain types of non –owned automobiles which are rented by you. It is commonly used to cover a vehicle that may be rented for a vacation within North America. It provides coverage for physical damage to the rented vehicle that is caused while you are in possession. Subject to the limit of coverage purchased.
• SEF 39 (Accident Waiver): Protects your driving record from dropping in the event of one at fault loss, provided that you have not had a criminal code conviction or any single conviction warranting a surcharge. You must be over 25 years of age and have 6 or more years of claims free driving to qualify for this coverage. If an accident is incurred the coverage is removed cannot be purchased again until you are 6 years claims free.
• SEF 43 (Waiver of Depreciation): This endorsement provides coverage against the effects of depreciation when an insured loss or damage occurs within the first 30 months of purchasing a new vehicle , including demo vehicles up to 8,000km. The cost of the damage would be covered on a Replacement cost basis rather than the actual cash value of the vehicle at the time of loss.
• SEF 44 (Family Protection): This endorsement pays when you, your spouse or dependent relatives are injured in an auto accident, or as a pedestrian, where the motorist responsible does not have insurance or does not carry enough insurance to cover your bodily injury claim. The limit of insurance provided by this coverage is the difference between the limits you carry on your policy and that carried by the motorist at fault. In the event that the responsible party carries no insurance, the coverage will be limited to the third party liability amount provided by your policy.