Drivers in Alberta are required to have car insurance in place. In that province, motorists are required to have at least $200,000 in third party liability coverage on their vehicle. Most drivers don’t buy just the minimum amount and choose to get $1 million in coverage.
The third party liability coverage pays for damages that an insured driver causes. The insurance company also assumes the cost of defending the policyholder if he or she is sued by an injured person.
Uninsured motorist coverage is also required for drivers in Alberta. This portion of the car insurance policy pays out when the at-fault driver in an accident either has no insurance or can’t be identified, such as in the case of a hit and run accident.
The province has also directed that all drivers must have accident benefits coverage in place. Under this plan, the driver and/or passengers in a vehicle can receive payments from the insurance company, no matter who was at fault for the accident.
Drivers in Alberta can also buy optional insurance. Collision coverage pays for the cost of repairing the vehicle if it is damaged due to an accident. If the car is totaled, the company will pay the Blue Book value of the car at the time of the accident.
Comprehensive coverage pays for the cost of repairing the car when it is damaged by fire, wind, hail, is stolen or is damaged by an act of vandalism.