When you register a vehicle, you pay a flat registration fee and get a basic package of insurance on your plates. The insurance includes:
- Coverage for damage to your vehicle, subject to a deductible
- Personal injury insurance from a vehicle collision
- Liability insurance for damage your vehicle causes to a vehicle or property, or injury to others
Vehicle Damage And Your Deductible
The physical damage your vehicle suffers from a collision is covered by your basic plate insurance, subject to a deductible. The deductible is the amount you must pay before your basic plate insurance covers the rest of the costs. Most vehicles with basic plate insurance have a $700 deductible.
Deductible Payment Plan
If you have basic plate insurance and you're eligible, you can use the Deductible Payment Plan to pay your deductible over 10 months.
Reduce Your Deductible
If you want to pay a smaller deductible, you can buy an SGI CANADA Auto Pak with the deductible option that works best for you.
Coverage For Vehicle Damage
Your vehicle is covered for its actual cash value. This is the market value of your vehicle when compared to similar vehicles, with similar equipment, mileage and condition as your vehicle.
Coverage Limitations
There are some limitations on vehicle damage coverage. For example:
- Loss or damage to a vehicle insured under antique use: $800 less your deductible of $500
- Loss or damage in classes A, C, D or TS (commercial trailers): Unless it says otherwise, this is limited to $15,000 or the declared value, less your deductible
- After-market audio, visual, sound or communication equipment: This is capped at $1,500 per incident or collision - $2,200 less your $700 deductible
If your vehicle is damaged, take steps to make sure more damage doesn't happen. For example, if your vehicle’s window is broken, put a plastic cover over the window to prevent water damage from rain.
Extra Damage Coverage
For increased protection, you can choose to buy extra damage coverage with an auto extension policy through your insurance broker.
Liability Insurance
If you're responsible, or liable, for a collision, you're responsible for the cost of the damage you've caused, which includes:
- Damage to personal property
- Physical injury or death to another person
- A victim's lost or potential income
Your basic plate insurance includes $200,000 of liability coverage. If you're responsible for losses more than $200,000, you'll have to pay for the difference out of your own pocket.
Increase Your Liability Insurance
If you'd like to increase your liability insurance coverage, you can choose to buy an auto extension policy, with the liability coverage limit you like best.
(Article courtesy: SGI Canada)
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