Who is protected under your policy?
All persons driving your vehicle are protected for damage caused to third parties, whether or not they are named in the policy.
The owner is protected for damage to the vehicle itself if the policy includes optional insurance. However, both secondary and occasional drivers of the vehicle should be named in the policy to avoid any surprises.
Under Quebec's Automobile Insurance Act, you are required to have civil liability insurance coverage of at least $50,000. Civil liability coverage protects you for:
- Damage caused to your vehicle for a no-fault collision in Quebec.
- Property damage and bodily injury for an at-fault accident outside Quebec.
- Material damage caused to a third party and for which you are at-fault.
However, it's advisable to hold $1 million of civil liability coverage. You'll be better protected if you cause damage to a third party or if you drive outside Quebec. This coverage is available for only a few dollars more.
In insurance jargon, this portion is known as Section A.
The optional portion is known as Section B of the insurance contract. If you were to have an at-fault accident, you need to have coverage for damage to your vehicle if you want your insurer to pay for these damages.
You can choose between different types of coverage in this portion of your automobile insurance policy. Here are a few:
- Coverage against perils of collision and upset
Covers damage to the vehicle caused by a collision if you are at fault.
- Coverage against perils other than collision or upset
Specifically covers your vehicle if it's stolen, if the windshield breaks or if damage is caused by fire, vandalism, wind, hail and water. This coverage also pays for damage caused by a collision with persons or animals.
- "All Perils" coverage
Covers all damage mentioned in both previous types of coverage.
- Coverage against specific perils
Coverage is of relatively limited scope and pays only for specifically-listed perils, including fire and theft.
In addition to your compulsory and optional coverage, you can add other types of coverage to your car insurance policy. These additions are called endorsements. One of the most popular is the replacement cost endorsement.