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Auto Insurance Terms Explained

Updated: Nov 7, 2022

Auto insurance in your hands

Nearly 8 out of every 10 Canadians have driver's licenses. These same drivers paid a whopping $24.19 billion in premiums in 2019 alone. While you can recognize that number as massive, only the cost of their own premiums is important for most drivers. When you get auto insurance St. Albert drivers, the way you can get the best rate is to understand all about auto insurance. Continue reading for a guide on all the terms you should know to understand better your auto insurance going forward.

Accident Benefits Accident benefits are the benefits you get from your auto insurance company in the event of an accident. This compensation could go to you, your passengers, or pedestrians involved in an accident. It could cover medical care and lost wages as needed as a result of an accident. Agent The agent is the representative from Grandin Agencies who work with you on your insurance policy. They can help to explain your policy and make adjustments to it on your behalf. Claim If you're involved in an auto accident, you will notify the insurance company. They will create a claim for the accident. Whether or not you've paid for the accident, the claim identifies it for all involved. Clear Canadian Loss Experience Automobile Rating or Clear is an organization that studies the cars we drive. They look at safety records and accident statistics and create a car ranking system used by insurance agencies. Collision Coverage The collision coverage part of your auto insurance covers your vehicle in the event of an accident. It is the part of your auto insurance that pays for damages to the actual vehicle due to being in an accident. Comprehensive Coverage Sometimes your car can has damages that don't come from an actual accident. Maybe your car's stolen or is damaged in a storm. Comprehensive coverage provides coverage for those damages to your vehicle that may come from things beyond a car accident, like a fire, theft, or vandalism. Deductible The deductible is the amount of money you pay for any damages. If your insurer is going to pay out on a claim, they will deduct the deductible amount from the payout, and you will be responsible for paying that amount. Varying your deductible amount is one way to adjust the cost of your premiums. Depreciation Depreciation happens to a vehicle over time. The vehicle loses value as it ages, gets damaged, or deteriorates. A "waiver of depreciation" can be purchased on brand new vehicles. Ask your broker for more information. Liability Coverage Liability coverage provides coverage when there is an accident, and you are responsible. It pays a claim for things like bodily injury and property damages. Like, Kind and Quality Like, kind and quality, called LKQ, means that if a property is lost, destroyed, or damaged, it will get replaced as close to its original kind as possible. Every effort will be made to replace a similar condition or type. Premium This is the term drivers are most familiar with as it impacts them directly. The premium is the amount of money a driver pays to the insurance company to be covered. Rider When you purchase an insurance policy, you can also add a rider. A rider on the policy provides additional coverage for specific things you want to be covered in your policy. Get Auto Insurance St. Albert Drivers From an Agency That Cares Get auto insurance from us here at the Grandin Agencies in St. Albert, where we will be happy to help you understand all the parts of your policy and coverage. As a family business that has been working in the insurance field for over 50 years, we are ready to answer your questions and help you understand your auto insurance policy. For more information about auto insurance or to take with one of our agents, contact us today.

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