6 Auto Insurance Coverage Options You Should Know About 

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February 28, 2022

We spend a lot of time in our cars, whether we’re commuting to work, going to the grocery store, or on a summer road trip with family. Studies have estimated that we spend up to 6% of our waking hours in our vehicles. We enjoy some of this time with breathtaking scenery or highly anticipated destinations. Other times, we dread the experience, either stuck in traffic or driving on less than ideal road conditions. Either way, driving always comes with a bit of risk.

Auto insurance provides peace of mind that your vehicle and well-being are taken care of when you’re on the road. If you’re in a collision, your auto insurance policy will provide a certain amount of financial protection. Basic auto insurance coverage is a great place to start, but depending on your specific circumstances, additional insurance coverage options may give you greater results in the case of an incident. We hope you never need to use it, but you’ll be glad you have it when you do!

Family Protection Coverage

If your family is involved in a collision, you want your car insurance to provide comprehensive coverage to provide support for all your family members. Adding family protection coverage to your policy covers the cost of treatment for your injuries, whether or not you are at fault. If another driver is at-fault and doesn’t have enough liability insurance to pay for your costs, then your family protection coverage will provide the difference. The coverage provided by most insurers will match your liability amount up to $2 million, helping to ensure everyone who needs medical care is covered. 

Accident Insurance for Pets

Your pet is important to you, and if you travel with them in your vehicle, you want to ensure they are protected and well taken care of in the event of a collision. Some auto insurance premiums and policies offer coverage for pets, primarily cats and dogs, but not all of them do. If you have pets, you can ask your insurance broker about the options available to you. 

If you get into an accident, your policy may cover vet bills. Some insurance companies classify pets as personal property and provide coverage under that provision. Other policies have a specific option to add coverage for pets. You can also consider a separate pet insurance policy if your insurance provider doesn’t offer additional protection for pets, especially if you drive frequently with your pet in the car. 

Rental Vehicle Coverage

When you rent a vehicle, each rental company will offer varying levels of insurance coverage for collision protection, damage, and theft. It may be tempting to skip the additional insurance coverage, assuming your credit card insurance or personal auto insurance will keep you covered, but this is not always the case. Before renting a vehicle, we strongly recommend talking to your insurance broker to determine what your insurance covers and where any gaps are.

If your current coverage seems to be lacking for rental vehicle coverage, you can add additional rental vehicle coverage to your policy. This extra coverage will usually cover damage, windshield damage, compensation for property damage, lost keys, or roadside assistance. These additional features can be beneficial, especially when travelling and renting a vehicle outside of Canada. 

Replacement Cost Coverage

Whether it’s due to a collision, weather damage, or theft, your vehicle is likely one of your most valuable possessions. It’s even more valuable when it’s a brand-new purchase. Many car insurance policies typically offer a replacement cost benefit that gives you the cash value of your make and model of car at the time, including depreciation. With this money, you can replace your vehicle with another one of similar make, model, year, and value. Your other option is to take the replacement money to apply it towards a newer vehicle of higher cost. This policy works great for most customers who have had their car for years, but what if you’ve recently purchased or leased a brand-new vehicle?

Many insurers offer limited waivers of depreciation which offer more coverage for brand new vehicles. If you own or lease a brand-new vehicle and it is determined a total loss due to an accident, weather event, or theft within 30 months of the purchase or signing of the lease, limited depreciation waivers can help you out. Your insurer will provide the total replacement cost of the vehicle, excluding any tire or battery costs. 

Out of Country Coverage

Do you have plans to drive your car outside of Canada? Your regular car insurance rates may or may not have sufficient coverage options for driving outside Canada. The last thing you need is to find yourself in a car accident in another country without adequate insurance coverage. If you’re planning a vacation or road trip to the USA or México, it’s always a great idea to consult with your insurance broker before leaving the country. You may also want to ask about insurance coverage for damage or theft outside Canada. You can avoid surprises by finding out what your coverage is before you travel. Knowing you have protection while abroad can make your trip more enjoyable.

Parked Car Insurance

Nobody wants to pay unnecessary insurance premiums. If you are planning to travel and have decided to leave your vehicle at home or on private property for any period of time, be sure to contact your insurance broker. You can save money by switching to policy options for parked vehicles that offer coverage for damage or theft but not coverage for active driving. This option is excellent for snowbirds or anyone who is going to be away from home for a month or more. Contact our insurance brokers to discuss your circumstance, and we’ll help you find a policy option that works best for your time away.

Auto Insurance in Edmonton and Sherwood Park

At Cornerstone Insurance, our priority is helping you find the best auto insurance to fit your lifestyle. When you contact our brokers and discuss your needs and risks, we’ll shop around to find car insurance quotes that provide you with the greatest savings and peace of mind. We can also review your current policy and tell you more about the different options available—call us today!

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