Car Insurance Advice
August 15, 2011
Every driver in Canada is required to carry insurance on their vehicles. Similar to the United States, insurance laws and requirements will vary from Canadian territory to territory. Car insurance Alberta has it's own specific rules and guidelines.
Some territories will mandate that the basic liability policy be purchased through a government agency and the additional coverages be purchased through private companies. Some territories allow people to sue for pain and suffering and for economic loss and some do not. Specifically, Manitoba and Quebec do not allow people to sue to recover for intangible financial loss.
In Alberta, both the basic and extended coverages are offered by private companies and people are able to sue to recover money lost for pain and suffering and for economic loss. Currently there are approximately seventy different companies that offer auto insurance in the province. For pain and suffering the maximum amount that can be recovered is $4559 and there is no specific cap on the amount recoverable for economic loss.
The basis of all auto insurance in Canada is the compulsory minimum third party liability coverage. In Alberta, the limit for bodily injury from a claim is $200,000. If the claim is a combination of bodily injury and property damage, the property damage will be limited to ten thousand dollars.
Medical payments are available on auto policies in the province up to fifty thousand per person. This includes rehabilitation that other health coverage does not pay with a seven hundred and fifty dollar limit for chiropractic benefits. The medical limits apply on a per person and per accident basis and must be turned in and settled within two years of the accident date.
Disability payments are also available on Canadian policies. In Alberta, the disability income benefit is limited to eighty percent of the weekly wages before taxes capped at four hundred per week up to one hundred and four weeks. There is a seven day elimination period during which no funds are payable. If the person is an unemployed adult the benefits are limited to one hundred thirty five per week for a maximum of twenty six weeks.
In Alberta, there are also specific death benefits for auto accidents. If the head of household is killed in an auto accident there is a ten thousand dollar benefit payable plus twenty percent to any surviving dependent and fifteen thousand to any surviving spouse. If the spouse of the head of household is killed there is a ten thousand dollar benefit payable.
Lastly, auto policies in Alberta and in Canada in general can provide a funeral expense benefit of up to five thousand dollars. This benefit covers any household member killed in an auto accident.
Overall, the availability and flexibility of auto insurance in the territory is good, due to the fact that all coverages are available on the private market. Being able to purchase the mandatory and optional coverages from private companies allows for a more competitive marketplace and helps keep the cost of the various coverages down.
With years of experience and a good driving record, why pay more for car insurance Calgary when you have earned the right to pay less.
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