It’s easy to get so wrapped up in the details of coverages, that we as brokers can forget to review some of the more basic and important elements of insurance for clients.

Liability as it applies to your Autopac is probably the most important element of your insurance.  We all look first at the investment we have in our cars and the need to protect the tin metal we own that we forget that our responsibilities to others when we drive or in some cases do not understand them.

When two (or more) vehicles collide several things can happen.  Property can be damaged ie cars, buildings, traffic lights, vehcile contents, roads and bridges.  People can be injured.  The property side of things costs money to repair and replace.  Even just a basic new vehicle can easily cost $25,000 or more.  Roads, bridges, and truck tractor cargo can get up into the millions.

Bodily injury is also very costly. Someone who can’t work and requires daily care will cost millions to look after, never mind lost income for their families.

So what happens after the ambulances and tow trucks leave?  Who pays for the costs of repairs, replacements and medical.  The answer is that it is ultimately the responsibility of the person who caused the accident.  Do any of us actually expect that we would absord the loss of a brand new vehicle?  Yes we (should) all have insurance, but our mutual insurance company, MPI, expects to be compensated by the person who caused the loss.

This is why your liability insurance is there.  If you have enough to cover these costs great.  If not, you will be asked to go into your own pocket for any shortfall.  If you can’t you can be sued and forced to pay.

Now, in Manitoba you cannot be sued or required to pay for bodily injury. But accidents that occur outside of Manitoba can create liabilities for bodily injury that our courts will enforce.

Your Autopac insurance comes with a small $200,000 basic limit and the cost of extending that coverage to $2,000,000 is next to nothing.  Limits of $5,000,000 are also very reasonable.  Manitoban’s are very fortunate to have some of the least costly liability coverage options in Canada. If you have not taken advantage of this option we encourage you to do so.

Drive safely.

While insurance is a necessarily dry topic, the decisions you make about it can have real consequences when something does happen.

Take the humble extension options on your vehicle insurance.  For the most part you have very little control over your car insurance.  But your deductible, liability and loss of use options are things under your control.

Customers tend to focus on the deductible because it is generally the thing that impacts their claims cost most directly.  You have the option of buying a private extension, which can be cheaper and as well as offering $50 ded on comprehensive claims, (eg. glass, hail, fire, falling objects). But beware, in doing so you give a big and little recognized benefit enjoyed by those who buy deductible extensions from MPI; the addition of the licenced or qualified clause.

Say what?  In plain english, this means that if you have loaned your car to someone who has unknowingly let their drivers licence lapse at the time of an accident, you will be able to proceed with your claim by simply having them renew their licence.

This one when it applies is a huge benefit.  Just imagine your teenage driver or perhaps an employee drove off with the car and had an at fault accident.   It isn’t until later that you discover the drivers licence is lapsed.  You as the vehicle owner would be on the hook for both the damage to your car and the other vehicle(s).  Unless you had any of the optional Autopac deductibles ($300, $200 & $100).

There are other rules that apply (length of lapse, status of licence etc.) but generally buying the deductible from MPI offers strong protection in this scenario.

Just a thought for the new year.

New Years for many is a time for reflection and renewal. If there is anything you would like us to do more of or better please let us know. As you look into the new year we remain ready to assist with all of your insurance needs.

Your feedback is important and we welcome it!

Just a freindly New Years wish from the management and staff of Ducharme Agencies!