Saskatchewan Plate Insurance Has it's Limits

I am often asked  “Why do I need a package policy on my vehicle when Saskatchewan has no fault insurance?”  It is certainly a good question since the term “No Fault” implies that no one will be held responsible for the accident.   This is simply not the case.    

No Fault may not mean what you think it does. 

Understand the term “no fault” really refers to the fact people injured in accident will not have to prove who is at fault to receive the medical expense and loss of income benefits.  These benefits are automatic in Saskatchewan.   Anyone injured in an accident in Saskatchewan do not have to go through a lengthy legal process to recover financial losses from the at fault party for these injury benefits.  However, at fault parties are still responsible for any other financial loss including any loss not fully covered by no fault benefits.

What happens when no fault benefits are inadequate? 

An injured person can and often does sue an at fault party for financial losses that exceed the those provided by plate insurance .   When a high income earner (someone with an income in excess of about $54,000) is injured they often sue for any shortfall of income benefits not covered under the no fault plan.   Many times this shortfall is quite dramatic.   Plate insurance in Saskatchewan only provides $200,000 for Liability.   $200,000 can disappear quickly when dealing with long term disabilities. 

What happens when the accident does not occur in Saskatchewan? 

When a Saskatchewan insured driver has an accident in another Province or State rules in that jurisdiction apply.   No fault insurance does not exist in Alberta.    Not very many people purchasing auto insurance in Alberta choose to insure for less than $1,000,000 since $200,000 is such a small amount.   Without a package policy you have very low limits of Liability protection and only meet the minimum requirements in North America.

What happens if you are at fault for damage to other vehicles. 

The insurance company refers to this as property damage Liability.  Semis with cargo can easily exceed $300,000 or $400,000 in value.  Other expenses like towing, loss of business income, and loss of market can further impact such a loss.   No Fault does not extend to damage to vehicles or their contents.   

What happens if the other person is uninsured, as would be the case if that driver is impaired or suspended.

Uninsured Motorist coverage is important.   This coverage protects you and your family from losses not normally recoverable.  Since the at fault driver has no insurance, any losses that you try to recover from them depends on them being able to pay.  The uninsured are notoriously broke.  You would have to chase them for years to get anything from them.  Uninsured motorist coverage turns the responsibility over to the insurance company to collect.  If they are unable to do so it is their problem.   A package policy increases this protection to $1,000,000 or $2,000,00.0 which is the same as your Liability Limit.

What happens if your children are injured and you are at fault?

Under automobile insurance there is a endorsement called “Family Protection”.  Family Protection simply allows a family member to sue you, the driver, if you are at fault.  Without this endorsement they could still sue you but your insurance would not pay the loss since the family member is an insured under the policy and Liability only covers a third party claim.  Family Protection effectively makes the insurance company pay the loss.  Your package policy increases this protection to $1,000,000 or $2,000,000.

To top-up your Liability Coverage  to $1,000,000 costs only $35 per year per vehicle. 

Topping up your Automobile Liability insurance may be one of the most important financial decisions you make.  $2,000,000 coverage is $55 per year per vehicle.   You may never recover financially from a serious automobile accident so $35 per year is a good investment.   

You are insured for Actual Cash Value under you plate insurance. 

There is a distinct advantage to insure a new vehicle for replacement cost.   The value of your vehicle depreciates very quickly.  Drive it off the lot and you soon discover that pre owned vehicles are not as desirable as new ones.  Often a person’s outstanding loan is $1000’s of dollars higher than the insurance company is willing to pay.   Replacement cost is just as beneficial if you are leasing a new vehicle.  It is not uncommon for the lease company to require large payouts even if the vehicle is only a month old.   Normally, If wearable parts need to be replaced (tires, brakes, engine, transmission, etc) the insurance company will depreciate the parts meaning you end up paying more than the usual $700 deductible, unless you have a Replacement Cost Policy.

Plate insurance has no ability to include other desirable coverage.

Road Hazard Glass at $50 deductible when it requires replacement or $0 deductible if can be repaired.

Wildlife collision covered without a deductible. 

Theft of vehicle covered without a deductible.

Loss of use of your vehicle – funds to pay for a rental vehicle.

Reduce the Standard $700 plate insurance deductible to a lower amount.

Need a quote – I would be happy to help you. 

  5235 19th Street

  Lloydminster AB  T9V 2H1 

  Office 780-872-5566

  Fax 888-324-6847

  Cell  306-821-1620

  Email    garthmerryweather@sasktel.net