What does Commercial Auto Insurance cover?
Commercial Auto Insurance covers vehicles used for business purposes. Automobile insurance in Alberta can be split into two main categories: Basic and Additional. While the three types of basic auto insurance are mandatory, additional coverage – such as collision and comprehensive – is optional. Talk to us to find out which coverage will meet your specific needs.
MANDATORY / BASIC COVERAGE
Third Party Liability Insurance
Third Party Liability insurance is mandatory coverage for the cost of damage that you may do to others in an accident. Liability coverage has two components: property damage and bodily injury.
Property damage liability coverage compensates to replace or repair property that you destroy (fences, buildings, etc.) up to the limit amount that you’ve selected. Each province has a set limit that must be purchased. You can also buy additional coverage for property damage.
Bodily injury coverage compensates you if you are legally held liable for the injury or death of another person. As with property damage coverage, each province sets a minimum coverage level and additional coverage may be purchased at the discretion of the driver. In most provinces, drivers have the right to sue for pain and suffering. If you are brought to court, liability insurance will cover your legal fees as well.
- Medical payments coverage: Medical payments coverage provides funds for medical expenses for you and your passengers as a result of an accident, regardless of who was at fault. It also covers you if you’re injured as a pedestrian or if you injure a pedestrian in an accident.
- Funeral expense benefits: This add-on covers the cost of a funeral if a fatality occurs as a result of an accident.
- Disability income benefits: If you are declared disabled after an accident and cannot work, this coverage will pay you every week based on your gross annual income before the collision.
- Death benefits: This coverage ensures that your partner and children are taken care of in the event of an accident resulting in your death. Payments depend on your wage, your age and the ages of your children.
Direct Compensation for Property Damage (DCPD) NEW Jan. 2022
Direct Compensation for Property Damage (DCPD) covers damage to your vehicle, damage to contents and loss of use for your not at-fault portion of a collision between two vehicles. Prior to 2022 this coverage was part of Third Party Liability Insurance and was processed differently. Find out more about this change to auto insurance in Alberta.
OPTIONAL / ADDITIONAL COVERAGE
Collision Insurance covers damages to your vehicle in an accident due to collision with another vehicle or object. This coverage pays for damages in the event you are considered at-fault in a collision or when damages are due to a hit-and-run or uninsured driver.
Comprehensive Insurance covers damages to your vehicle that did not result from a collision, such as fire, hail, vandalism or theft.
Specified Perils is a limited version of comprehensive that covers only the perils named in the policy.
Endorsements increase or decrease coverage under the standard policy. There are many common endorsements such as: Comprehensive Cover Limited Glass (SEF 13D), Loss of Use (SEF 20) and Legal Liability for Damage to Non-Owned Automobiles (SEF 27).