There are three primary components of auto insurance. Depending on where you live, some may be mandatory and others may be optional.

• Liability — Pays expenses related to bodily injury to another person or property damage caused by your vehicle
• Comprehensive — Reimburses any damage or replacement required for your own vehicle due to incidents not related to driving, such as theft, fire, hail or vandalism
• Collision — Covers any expenses required to repair your own vehicle if you hit an object or are found at fault in an accident

These are fairly broad definitions for each coverage type. It’s important to know that there are some common exclusions to each, meaning certain scenarios listed in the policy details would not be covered.

Understand your policy

As with any insurance policy, exclusions may vary by company. The list below includes the most frequent exclusions, but there could be others. Review and understand the specifics of your policy — don’t wait until a claim to discover something won’t be covered.

Theft of personal belongings inside your vehicle

Comprehensive coverage may pay for theft or vandalism of the vehicle itself, but it usually doesn’t extend to any personal belongings that are lost or stolen due to those incidents. Instead, loss of personal items is often covered by your renters or homeowners policy.

Custom parts and equipment

Your policy will be based on the value of the standard equipment included in your vehicle’s make and model. If you have custom items added to your car, such as a high-end stereo, custom interior parts, special grills or outside trim, or even additions such as wheelchair lifts or special carriers, let your insurance broker know. They can add a policy for custom parts or equipment that includes an itemized list of upgrades and their value to give you full protection.

Use of a personal vehicle for business

Most personal auto policies will not apply if an incident occurs when your vehicle is being used for business, even if it’s only for a short errand at the request of your company. This exclusion does not include commuting to and from work, but it does include any other use of your vehicle for commercial purposes, even if only on occasion or a part-time basis.

Your company should provide coverage through a commercial auto policy. But if you are responsible for your own insurance as a delivery person, a rideshare driver, an in-home consultant or another role that requires time on the road in your own vehicle, discuss this with your insurance broker. They can help you add commercial auto coverage to your personal insurance plan.

Loan payoff

If your car is stolen or totaled, most policies will pay the actual cash value of your vehicle at the time of the incident. However, if you have any outstanding debt owed on a financed vehicle, that may not be enough to cover what you still owe.

Depending on the amount financed and length of your loan, you may want to purchase guaranteed asset protection (gap) insurance. Gap insurance covers the difference between the claim and your outstanding loan amount.

Geographic restrictions

Although not an issue for most drivers, if you live near an international border, confirm if you are covered when you drive your vehicle in a different country.

Intentional misuse or risky behaviours

If you damage your own vehicle or someone else’s, or if you injure yourself or others due to excluded events such as drag racing, excessive speeding, driving on a racetrack or off-roading, your claim can be denied. In addition, if it’s discovered that you intentionally damaged your vehicle or vandalized someone else’s property, your coverage will not apply.

If you know you’ll be using your personal vehicle for a racing event or another adventure, discuss this with your insurance broker. There are special policies that can address these risks directly, such as motorsport or off-road insurance.

Normal wear and tear

Every vehicle requires regular maintenance and faces normal wear and tear. Mechanical failures and routine maintenance are not covered by auto policies.

Specific catastrophic events

Like exclusions found in homeowners policies, auto policies will typically list specific events beyond the policyholder’s control that are not covered. These include losses caused by war, terrorism, nuclear events, sinkholes and other catastrophes. While these are usually not things policyholders worry about, make sure you know the specific events listed in your policy’s details.

Note that some more common acts of nature may also be excluded from your policy. Knowing what’s not included is key, so you can discuss adding separate coverage if appropriate.

Whether you’re a new driver or an experienced one, getting involved in a car accident is always a stressful and unpleasant experience. Not only can it cause damage to your car, but it can also lead to costly legal and insurance claims. That’s why having a dash camera installed in your car can be a game-changer when it comes to settling insurance disputes.

What is a Dash Camera?

A dash camera, also known as a dashboard camera or a car camera, is a small camera that’s mounted on the dashboard or windshield of a car. It’s designed to record video footage of the road ahead and the surrounding area while you’re driving. They have become extremely popular with drivers in recent years, as they help to provide crucial evidence in the event of an accident.

The Importance of Dash Cameras in Insurance Claims

Dash cameras can help in several ways when it comes to insurance claims:

• Evidence of the Incident

One of the main ways in which dash cameras help in insurance claims is by providing clear evidence of what happened during an accident. The footage captured by the dash camera can show who was at fault, the speed of the vehicles involved, and the conditions on the road at the time of the incident. This evidence can be crucial when it comes to determining who was responsible for the accident and ultimately settling the insurance claim.

• Protection Against Fraudulent Claims

In addition to providing crucial evidence of accidents, dash cameras can also protect against fraudulent insurance claims. Unfortunately, in some cases, people might stage an accident to make it look like someone else was at fault, or they might exaggerate their injuries to try and claim more compensation. Having a dash camera installed in your car provides a clear record of what happened, which can help to protect you against fraudulent claims.

Having a dash camera installed in your car is a smart investment that can save you a lot of hassle and money when it comes to insurance claims. It provides clear evidence of accidents, and protects against fraudulent claims. So, if you’re looking to improve your driving experience and protect yourself on the road, consider investing in a dash camera today.

Did you know that if you’re driving and engaging in a conversation on your mobile device, you are over 4 times more likely to be involved in an accident? Distracted driving is one of the leading causes of driving-related accidents resulting in bodily injury in Alberta.

Let’s take a look at what constitutes distracted driving, what the consequences are, and what you can do to curb any bad habits you’ve developed.

What is distracted driving?

Distracted driving refers to the use of hand-held devices and certain display screens while driving, stopped in traffic, or stopped at a red light. Basically, if you’re driving and engage in an activity involving a mobile device, then you are guilty of distracted driving under Alberta law.

When you are in the driver’s seat, it is illegal to engage in the following:

• Texting or dialing your phone or hand-held wireless device
• Using your tablet or portable gaming system
• Engaging with a display screen unrelated to driving (e.g. watching a video)
• Programming a GPS (if not via voice command)
• Writing, printing, or sketching
• Reading printed materials
• Grooming

In Alberta, it is illegal to even hold your phone while driving. The only times that you are permitted to use your phone while in your car are when you have to call 911 or when you’re safely parked off the road.

It is not illegal to use a hands-free communication device such as a Bluetooth device or earpiece, nor is it illegal to use a GPS unit if it is built in or securely mounted to your vehicle’s dashboard.

However, be aware: despite the fact that it is legal to use a hands-free device while driving, the risk of being involved in an accident is still greatly increased. Talking on any device can diminish your reaction time, making you a risk to both yourself and others.

CAUTION: Eating, drinking, smoking, and reaching for things while driving are not classified as distracted driving in Alberta. Despite this, these activities increase your risk of getting into an accident, and doing any of them can result in careless or dangerous driving charges.

The penalties for distracted driving

Because using a cell phone or other electronic device while driving is so dangerous, you can face serious penalties if you are caught.

If convicted of distracted driving, you may face a penalty of a $287 fine and three demerit points. If you are charged with careless driving or a moving violation, you could face additional penalties.

If you are found to be endangering individuals as a result of distracted driving, you can face additional charges. Careless and dangerous driving charges can result in loss of demerit points, steep fines, licence suspensions, and jail time.

Additionally, if you are convicted of distracted driving, your auto insurance can be affected. You could face higher insurance rates, classification as a high-risk driver, or even cancellation of your policy altogether.

Remember, even if your driving doesn’t seem to be affected, you can still be charged with distracted driving.

How to prevent distracted driving

We’ve become accustomed to responding to our phones as soon as they chime, beep, and vibrate, and it can be easy to find ourselves answering calls or pressing away at buttons while driving. Here are some tips on what you can do to avoid becoming distracted while driving:

Turn your mobile device off: This is both the easiest and the hardest solution. Powering down your device ensures that you’ll be distraction free, but doing this requires some discipline. Try turning your phone off when you enter your car, then turning it back on when you get out.

Hide your device: Even if you have your phone off and it’s beside you, you might be tempted to power it up while driving to see if you’ve missed a call or message. If you can’t see your phone, chances are you’ll be less tempted to respond to it. Try putting your device in the trunk of the car before getting in. You probably won’t even miss it.

Set your phone to Do Not Disturb: Most phones now have a Do Not Disturb feature. This feature will prevent calls and texts from coming in unless the caller is on a pre-designated list or the same number calls multiple times in a row. Setting your device to Do Not Disturb while having your Bluetooth activated will ensure the only calls that will reach you are important ones.

Give your phone to a passenger: If you’re expecting an important call or text, give your phone to someone else who can respond to any message. They can take care of the call while you take care of the driving.

Distracted driving is a serious risk both to yourself and to others. It’s not worth taking the chance. If you have questions about how changing your driving habits can affect your insurance rate, speak to your insurance broker.