Broken Insurance: Understanding Your Auto Insurance Coverage
Many drivers assume that auto insurance is a single type of coverage. In reality, what people often refer to as broken insurance is simply a breakdown of the different coverages that make up a complete auto insurance policy.
Each coverage within your policy protects you from different risks. Understanding how your broken insurance coverage works can help you choose the right protection for your vehicle and your finances.
Mandatory Auto Insurance in Alberta
In Alberta, drivers are legally required to carry certain types of coverage as part of their broken insurance policy structure.
Third-Party Liability Insurance
Alberta drivers must carry at least $200,000 in personal liability and property damage coverage. This protects you if your vehicle causes injury to another person or damage to their property.
Accident Benefits Coverage
Accident Benefits coverage is mandatory and protects passengers in your vehicle regardless of who is at fault in an accident. This coverage may include:
- Medical and rehabilitation expenses
- Funeral expenses
- Death benefits
- Income replacement
Accident Benefits also include Uninsured Motorist Protection, which helps protect you if you are involved in an accident with a driver who does not have insurance.
Understanding these mandatory components is an important part of knowing how your broken insurance coverage works.
Additional Auto Insurance Coverage Options
In addition to mandatory coverage, drivers can add optional coverages that strengthen their broken insurance protection.
Collision Coverage
Collision insurance pays for repairs to your vehicle if it is damaged in an accident, whether you are at fault or not.
Specified Perils Coverage
Specified Perils coverage protects your vehicle against specific risks listed in the policy, such as theft or fire, that are not related to a collision.
Comprehensive Coverage
Comprehensive insurance covers damage caused by events other than collisions, including:
- Theft
- Vandalism
- Fire
- Weather-related damage
This type of coverage provides a broader level of protection within your broken insurance policy structure.
All Perils Coverage
All Perils coverage is one of the most extensive options available. It includes everything covered under collision and comprehensive policies, plus protection against theft by someone in your household or an employee.
Understanding Your Broken Insurance Coverage
When reviewing your auto insurance policy, it is important to understand how each coverage works together. Knowing the details of your broken insurance policy allows you to choose protection that fits your driving habits, vehicle value, and financial situation.
If you have questions about your auto insurance coverage or broken insurance policy details, contact Rizk Insurance today. Our experienced brokers can help you understand your coverage and find the best insurance options for your needs.