Auto Insurance

Personal Insurance > Auto Insurance


Auto insurance is available for autos you own, rent or lease and provides coverage for legal liability arising out of the operation of an automobile, physical damage coverage for the automobile itself, accident benefits (medical payments) insurance, comprehensive coverage and protection against uninsured drivers.

  • Private Passenger Auto
  • Motorcycle
  • ATV
  • Motor Homes
  • Trailers
  • Snowmobiles
  • Umbrella Policy
  • additional liability protection

Auto Insurance Glossary of Terms

At Fault Accident

An incident involving a motor vehicle which results in harm to individuals, damage to property or car(s) where you are deemed partially or wholly responsible.


A request made to the insurance company for compensation for any damage to you or your car as a result of an accident or loss. A claim can be any notification of a possible loss under an insurance policy, whether or not payment follows.


Convictions for any moving traffic offence (offences related to the operation of a vehicle) under an Act governing highway traffic or for any offence substantially the same committed whether within or outside Canada.


The amount of money you agree to pay if you make a claim. For example, if you choose a $500 deductible for your Collision coverage and you have an accident where you hit someone and you are at fault, you are responsible for paying for the first $500 worth of damage to your automobile. Your insurance company will pay the rest.


An addition or change to an Insurance Policy that alters what it covers.


Insurance premium

The amount of money you pay the insurance company in return for the insurance coverage described in your policy.

Primary driver of the Vehicle

The person who drives a particular car most of the time.

Private Passenger Vehicle

An automobile driven for pleasure, commuting or work-related travel (for example, sales representatives who drive to visit customers). Private Passenger Vehicles do not include automobiles used by tradespeople (plumbers, electricians, etc.) as part of their jobs.

Secondary driver of the Vehicle

Someone who drives the car frequently but not as often as the primary driver.

Accidental Benefits

The part of auto insurance that provides medical care and income replacement benefits to insured persons injured in a car collision, regardless of who caused the accident.  In some parts of the country, this is referred to as “Section B”.


CLEAR is the Canadian Loss Experience Automobile Rating.  This is a method of classifying different models of cars for insurance purposes by using historical claims data including Collision, Comprehensive, Direct Compensation – Property Damage, and Accident Benefits coverages.  CLEAR is used by many insurance companies across the country.

Family Protection (SEF 44)

This endorsement provides protection to the insured, their spouse and certain other relatives should they suffer bodily injury or death caused by an inadequately insured motorist.  This endorsement is subject to a limit, based on the limits of your liability coverage as well as the other motorist’s limit of liability coverage;  we, therefore, recommend that you speak with your broker should you have any questions regarding this endorsement.

Each province may have a slightly different definition of who will be covered under such an extension; it is, therefore, recommended that if you have this coverage, you speak with your broker to identify who it extends to.

Is coverage automatically included?

While some insurers automatically include this coverage for car insurance policies, some will only do so at your request and for a small fee.

What is the risk if I’m not covered?

If you do not have this coverage and an accident with an underinsured motorist results in injury or death to you or one of your family members, there may only be a limited payment, if there is a payment at all, as a form of compensation.

Why is this not covered under Third Party Liability section of my insurance policy?

The Third Party Liability section of your car insurance policy will cover injury or property damage to third parties only.  The definition of a third party does not extend to include those passengers in the inured automobile, only the driver and passengers in any other automobile involved in the accident.

Hospital Service Levy

If you are seriously injured in a car crash, most of the treatment you receive is probably covered by auto insurance, but because Canadians have universal health care, and emergency care or visits to your doctor will initially be paid for by your provincial health care, any emergency care or visits to your doctor will initially be paid for by your provincial health care plan.  You will likely never see the bill, but your auto insurer will – in a manner of speaking.  Every year, insurers reimburse provincial health plans for treatment given to crash victims.  This is called a “health levy” or aggregate assessment” and is an important source of funds for provincial health care systems in Alberta, Ontario, New Brunswick, Nova Scotia, PEI and Newfoundland & Labrador.

Direct Compensation – Property Damage (Ontario, Quebec, New Brunswick)

Covers Damage to – or loss of use of – an automobile or its contents, to the extent that the driver of another vehicle was at fault for the accident.  It is called “direct compensation” because, even though someone else caused the damage, the insured person collects directly from his or her insurer instead of from the person who caused the accident.

Uninsured Motorist Coverage

A form of insurance that pays for the bodily injury or property damage caused by the owner or operator of an uninsured automobile.  In some parts of the country, this is referred to as “Section D”.