Welcome back to an exciting article about insurance!
You are likely like millions of Canadian drivers who don’t know what their broker is talking to them about. As a young professional, my goal is to explain the jargon of insurance like I would explain technology to my parents. It’s slow and easy. This article will explain the various terms used by Canadian insurance professionals every day.
Insurance Broker- An RIBO licensed person selling insurance for several insurance companies is an insurance broker. Brokers work in brokerages which are offices that sell policies and manage them for Canadian insurance companies.
Insurance agent- insurance agents work directly for an insurer. FSCO licenses them and allows them to only sell insurance from the company that they work for.
First Party A policyholder is called the first party.
Third party This is the policyholder with whom you were in an accident.
Liability Insurance – liability insurance covers you for legal expenses if you are sued.
Collision Insurance- collision coverage covers your vehicle’s repairs if you are involved in an accident or weather-related accident.
Comprehensive Insurance Comprehensive coverage includes the loss or theft of your vehicle. You also get coverage if your vehicle is vandalized, damaged by an animal, or set on fire.
All Perils- This policy provides both collision and comprehensive coverage. All Perils covers you in the event that a family member, employee or friend steals your vehicle or causes damage to it in an accident.
Vehicle Identification Number- Your car’s serial number is the vin number. It’s usually found on the left side, near the window.
MVR (motor Vehicle Record) – A database that contains driver’s license dates and driving violations.
Autoplus – Autoplus is an enormous database that provides details and information about millions of insurance policies.
Accident Benefits – This insurance policy covers the insured in case of an accident.
Rehabilitation & Medical- A part of your Accident Benefits. When you are injured in an accident, this coverage will cover your medical and rehabilitation costs.
Income Replacement- A part of your Accident Benefits. If you are injured in an accident, this coverage will cover your income.
Attendant care Part your Accident Benefits. If you become incapacitated from driving due to an accident, this coverage will cover the cost of someone else taking care of you.
Housekeeping, Caregiver, and Home Maintenance- A part of your Accident Benefits. This coverage covers someone who will take care of your home in the event you are incapacitated due to an accident.
Dependent care- Part your Accident Benefits. If you are injured in an accident, this coverage will pay for someone to drive your dependents’ cars.
Funeral & Death- A part of your Accident Benefits. If you are involved in an accident, this coverage will pay for your funeral costs.
Indexation benefits- A part of your Accident Benefits. This coverage allows you to adjust your coverage for inflation if you are permanently disabled as a result of an accident.
Direct Compensation-Property Damage- This coverage makes it so all claim handling goes through your own insurance company even if your not at fault in an accident.
You have probably learned some of the most important terms in insurance. These insurance terms are most applicable to auto insurance. They can be found in your application. Many of these coverages are covered under accident benefits, in case you haven’t noticed.
Your policy should include Accident Benefits. This is the coverage that takes care of you if you are seriously injured. The provincial government made changes to how insurance policies handled accident benefits in 2010. This change attracted a lot media attention, educating drivers about the fact that they no longer have the same coverage.
If you ever get into a serious accident, it is important to talk to your provider about the changes you have made and how they could affect your life.