Your life changes year to year more than you might think it does. And when you think about it, most of the changes may impact your auto insurance. That’s why a review of your policy is a good idea. You want your insurance to reflect your life and we at Alpine Insurance with locations in Edmonton, Red Deer, Calgary, Lethbridge and Canmore can help you with that.
In this article, you will discover:
How much new cars really depreciate
The compulsory minimum insurance requirements in Alberta
Other auto coverages to consider
Which vehicle is stolen the most in Canada
Life changes that can impact your auto policy
Have you ever considered how much a new car depreciates the second you drive it off the lot? Well, if you haven’t, here’s the surprising statistic. When you leave the dealership and turn onto the street, you car will go down in value between 20% to 25%!
That’s means if you paid $15,000 for your car, by the time you get home, it might only be worth $11,250.
In fact, depending on what you put down on the car, it may take a few years to arrive at where the value is equal to what you owe on it.
Talk to us at Alpine Insurance in Calgary about purchasing "Waiver of Depreciation" coverage for your newly purchased or leased vehicle. For an additional premium charge, this coverage will "waive the depreciation" for the first 24-30 months that you own your vehicle (time line depends on the Insurance Company you are insured with).
Compulsory Minimum Insurance Coverage for Private Passenger Vehicles
No matter what you own, however, you’ll have to purchase minimum auto insurance from a private insurance carrier through an insurance agent (contact Alpine Insurance). The following information is for the province of Alberta and is taken from the Insurance Bureau of Canada (IBC):
Compulsory minimum third-party liability: $200,000 is available for any one accident; however, if a claim involving both bodily injury andproperty damage reaches this figure, payment for property damage will be capped at $10,000
Medical payments: $50,000/person; including rehabilitation, excluding health insurance and other medical plans; chiropractic maximum $750; massage therapy $250; acupuncture $250; all limits are per person, per accident; limit is two years
Funeral expense benefits: $5,000
Disability income benefits: 80% gross weekly wages up to maximum $400/week; 104 weeks total disability; seven-day wait; non-earner benefit (unemployed person 18 years or older) $135/week, for maximum of 26 weeks
Death benefits: Death anytime; death of head of household $10,000, plus 20% ($2,000) to each dependent survivor after first; plus survivor spouse/partner or dependent relative gets $15,000 for the first survivor and $4,000 for each remaining survivor; death of spouse/partner $10,000; death of dependent relative according to age, maximum $3,000
Impairment benefits: N/A
Right to sue for pain and suffering? Yes. Maximum amount recoverable as damages for the non-pecuniary loss for all minor personal injuries $4,339* (“minor” means sprains, strains and Whiplash Associated Disorder – WAD I and II)
Right to sue for economic loss in excess of no-fault benefits? Yes
Note: While these are minimums, Cam Clay of Alpine Insurance in Calgary, strongly recommends that you consider purchasing the highest limits you can afford. Often, judgments or expenses for these coverages can greatly exceed the compulsory minimums.
In addition to the minimums cited above, there are other auto coverages to consider:
Collision-This coverage goes into effect if your car is damaged from another vehicle or if you hit an object like a tree or structure. It will pay up to the limits of the policy.
Comprehensive-This is sometimes called OTC (other than collision). It pays out if something happens to your vehicle like hail damage, or if it’s damaged from a fire or theft.
Note: Auto theft accounts for about 13.5% of all property crime in Canada. Of the most popular vehicles manufactured between 1995 and 2007, the 2000 two-door Honda Civic SiR was the most frequently stolen vehicle, according to IBC’s report—How Cars Measure Up. In 2007 there were 23,248 vehicles stolen in Alberta with the higher percentage of that in Edmonton. According to IBC, the most frequently vehicle stolen in Calgary in 2010 was any of the Ford F Series of Trucks. Numbers are also in that approximately 6000 vehicles were stolen in Calgary in 2010.
Uninsured/Underinsured Motorist- This coverage protects you if you’re involved in an accident with a motorist who has not obtained the proper insurance. This applies if you are a driver or a passenger of a vehicle or even if you are a pedestrian.
Road Service-If your vehicle becomes disabled because of no fuel, a dead battery or any other number of problems, road service coverage will pay to get your vehicle going or tow it in up to the limit on the policy.
Life Changes and So Does Your Auto insurance
Consider all of the following changes that could happen in your life over a year:
Any of these and other life occurrences can change your life and as a result your insurance. That’s why you want to review the status of your auto policy each year with Alpine Insurance in Alberta.
Many insurers offer discounts on auto policies. Alpine Insurance can help you realize all the ones you’re entitled to.
- Your student maintains good grades (that may make your policy eligible for a good student discount)
- Your other student is going to the university
- Another child moves out of the house
- You move
- You change your job and don’t have to drive as far to work
Contact Alpine Insurance in at one of our five Alberta locations. We’ll make sure you’re completely covered while being compliant with the law and in sync with your peace of mind.
You can also obtain a quote from Alpine Insurance, on car insurance on this site.