What’s New About Alberta’s Auto Insurance Act?
- As per changes made, you can claim the damage caused because of an accident directly from your insurance company.
- You can claim for any type of physical damage caused to the vehicle, any type of changes occurred in the usage of vehicle and if any object placed inside the vehicle is damaged due to accident.
Why New Model was Launched?
What is Direct Compensation for Property Damage (DCPD):
DPCD is the changed model of Insurance Act launched by government of Alberta that help drivers in getting more consistent medical treatment and make process of claims specifically for collisions faster. DPCD comes with your mandatory auto insurance policy in Alberta.
Features offered under DCPD are:
- The drivers can claim cost of damage in case of vehicle damage from their own insurance company if collision is not because of their fault.
- As under DPCD there is no third party, the cost involved for claiming the damage cost through third party insurance is reduced.
How Payout Will Be Decided?
- The compensation will be made by your policy.
- The compensation made will be irrespective of whose fault is it.
- The policy will compensate depending upon the extent of fault from your side that resulted in collision. If it is found that you are at 25% fault, then 75% of the cost of damage will be covered under direct compensation.
- Remaining 25% cost i.e., at fault percentage, you have to bear out of your pocket.
- If the collision is not your fault, then you will get 100% compensation under DCPD.
- If you have bought additional coverage for collision, then the at-fault extent will be covered by additional collision coverage.
- If you are at 100% fault and do not have any additional coverage for collision in that case you will not get any claim for the damage or destruction of your vehicle.
- The claim made by you under DCPD will not have any impact on the premium.
- However, at-fault collisions be it partial or completely will impact your premium rates.
Reasons and Benefits of Launching New Model:
- To make insurance policy fair for all drivers and insured persons.
- To make process simpler, systematic and faster for you.
- You don’t have to wait for other party’s insurance company to clear your claim for damage occurred.
- There are no deductibles in coverage offered under DCPD
- Coverage for medical diagnostics and treatment is increased
- Increased list of health professionals’ types who can handle collision related emergencies.
- Benefits added are funeral benefits, replacement of income and grief counseling facility
- Have better clarity when it comes to medical equipment coverage, modifications related with vehicle or house.
As per law all the Insurance brokers in Alberta offers DCPD with deductibles. Before deciding it is important that you explore different deductible options and go for an insurance policy that suits your needs and requirements. We at iSmart, offer insurance plans especially designed to suit your requirements as well as lifestyle. We try to get you policies at best possible rates with the help of our strong network of Canada’s leading insurance companies. Our goal is to build trust with our clients that can lead us to long-lasting relationships.