How Important Is PIP Insurance?

The Canadian law makes it mandatory to carry basic car insurance for all vehicle owners and drivers. In Calgary, an Alberta city, all vehicle owners and drivers must have third-party liability coverage and accident benefits. The vehicle owners can opt for optional coverages if they want. 

However, like some other Canadian provinces, Alberta is considering shifting to a no-fault insurance model, commonly known as PIP insurance. As per the advisory panel’s recommendation, the Alberta government is all set to adopt a no-fault insurance model. Many believe this move will make upwardly mobile car insurance more affordable and sustainable.

Some information on how the new Bill 41 will favour the drivers can be found here. If you are in Calgary and own or drive a car, here we share information on no-fault insurance basics to keep you in the know. You can also visit Surex for the best car insurance quotes in Calgary.

From At-fault to No-fault: What Can You Expect?

At present, Alberta follows an at-fault insurance arrangement. This implies that in case of a car accident, the driver takes responsibility and pays the repairing costs for the damaged vehicle. 

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In this system, claims involve large sums of money, and the drivers end up paying higher premiums. According to the industry, a driver pays around $1300 as a yearly premium on average, and the drivers in Quebec that follow the no-fault insurance model pay around $700 yearly premium. 

How The No-Fault Car Insurance May Benefit The Albertans?

Implementation of no-fault insurance as per Bill 41 may be beneficial for the Albertans. Apart from lowering the insurance costs, the upsides include better coverage, faster and simpler claims processing, and fewer disputes. 

Before going into details, you should also know the two vital pieces of information:

  • No-fault insurance doesn’t signify nobody is to blame for an accident.
  • No-fault insurance mainly addresses how insurance claims are disbursed. 

So What’s In It For The Victims? 

No-fault insurance simplifies the claims process. The process eliminates the victims chasing the at-fault driver’s insurance company for compensation. In no-fault provisions, each party’s insurance company pays for their own policyholder’s medical costs without wasting time and money to determine whose fault it was. 

Another advantage of no-fault insurance policies is better coverage. Generally, no-fault insurance may cover the following: 

Medical bills 

No-fault coverage pays the medical bills of the policyholder and companions who suffered an injury in a vehicle accident. However, there may be some caps depending on the plans and laws of the province. 

Policyholders can choose what coverages they want while signing up and get protection accordingly. Medical bills may include the following:

  • Ambulances.
  • Emergency care, X-rays, prescriptions, surgery, nursing, dental care, and prosthetic devices.
  • Therapy, rehabilitation, and remedial care.
  • Psychological and psychiatric care.
  • Optometry services.
  • Speech and audiological services.

Lost Wages

If your accident injury keeps you away from your workplace and you lose wages, no-fault insurance may provide some coverage for the lost income. Again, the amount will depend on the policy type. It is essential to talk to an expert insurance agent to explore the options and work out a plan that best suits your requirements. 

Funeral expenses

In cases where death is involved, no-fault coverage may offer a death benefit to the affected family. The policyholders need to review this carefully while analyzing and comparing different plans.

According to a report, 33% of Alberta car accident victims receive no compensation. With no-fault insurance, the Alberta government hopes to minimize this by reducing the number of disputes. 

Industry prediction says that it will be mid-2021 before the Alberta government implements the no-fault model in the province. The Insurance Brokers Association of Alberta (IBAA) has released a white paper and has recommended steps to meet the deficiencies in the insurance industry. 

How To Save On Premiums

Between at-fault and no-fault, an Albertan still has to buy an insurance policy. Furthermore, don’t forget to do an annual rate check as insurance rates tend to change yearly. Setting your deductible is also crucial. A higher deductible means lower insurance rates. So set the level right. 

Choose your coverage wisely to get the maximum protection benefit from your plan. What you drive and how much you drive affect your insurance rates. So choosing the right car is also a vital factor when bargaining for insurance rates. 

Consider the following tips to save money while shopping for car insurance:

Bundle insurance policies

A bundle discount is an effective way to save money on insurance premiums. Renowned insurance brokers can get you the most competitive rates and help you decide what you need by steering you to the suitable bundles. 

Take Guard Against Theft

Vehicle thefts are alarmingly high in Alberta. By installing anti-theft devices in your car, you can get a reduced deductible from your insurance company.

Maintain A Good Driving Record

Responsible driving and a good driving record will go a long way in saving money. Getting tickets for speed driving, improper lane changes, not wearing your seatbelt, traffic light infractions, disobeying a sign, or not signalling when required may negatively impact your insurance premium. 

Pay Premium Yearly

Though many prefer monthly premiums for insurances, insurance companies offer a discount for yearly premiums. 

Don’t over-insure

Consult a licensed advisor to determine the right plan for you. Opting for unsuitable coverage and paying a high premium is unnecessary. 

Get Family Multi-vehicle Discount

If you or the family own multiple cars, get all vehicles under the same policy and get a discount. 

Endnote

While shopping for affordable car insurance in Calgary, take time to research insurance brokers to get the best car insurance quotes. Insurance brokers can pick the best offers from renowned insurance companies and help you get the best coverage at the best price.

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