In Edmonton, all motorists must purchase basic third-party liability insurance (also referred to as 'PLPD', or personal liability and property damage) that provides you with key benefits including:
Third Party Liability
This coverage protects you from claims made by other motorists for injuries or property damage if you are found to be responsible for an accident. Although the mandatory limit in Alberta is only $200,000 at this time, that is probably not enough in today's financial climate where lawsuits can easily reach hundreds of thousands of dollars if a person becomes disabled. Realistically, many insurance companies recommend quotes at $2,000,000 for liability coverage and it is recommended that you look at purchasing additional coverage beyond that to protect yourself against worst-case scenarios.
Accident benefits gives you coverage for certain injury treatment costs, such as physiotherapy, rehabilitation and medical expenses, and loss of wages or benefits and costs to do with a crash-related death. In Alberta, this coverage is considered "no-fault" insurance; that is, regardless of who is at fault in the crash, you will receive the benefits of this coverage. Regardless of whether you live in Edmonton, Calgary, or any of the smaller cities in towns, all automobile insurance policies in Alberta have the same provincial limits for accident benefits.
Family Protection (Underinsured Motorist Protection)
This section covers you in cases where another motorist has caused an accident but has no insurance or inadequate insurance to pay for all the injuries caused to you. It is common for the amount of coverage to be the same as your liability coverage; thus, if you purchase an auto insurance policy with $2 million liability coverage, you also receive $2 million coverage for Family Protection.
Basic car insurance only covers your vehicle in Canada and the United States. So, if you're planning to cross the border into Mexico, you should purchase appropriate insurance before leaving.
Costs of Basic Car Insurance Coverage
The cost of a basic liability insurance policy is determined by a number of key factors, including:
- How long you've been licensed
- Your accident and ticket history
- Where you live and how you use your vehicle