Automobile Insurance

Your Car is an important part of your life –  purchasing the right Automobile Insurance can be a very important part to giving you peace of mind on the road.  

Types of Automobile Insurance

Description

In order to drive a vehicle on a road in Manitoba, you are required by law to purchase an Auto Insurance policy called Autopac, from Manitoba Public Insurance – which is a corporation owned by the Government of Manitoba..  You are also required to have Manitoba licence plates and registration and of course a valid driver’s licence.  All Reider Insurance locations provide Autopac and Driver and Vehicle Licensing services – meaning that on behalf of the government, we can look after your insurance, licence plate, registration and driver licence needs.

If you are financing the purchase of your vehicle or are leasing a vehicle, it will be a condition of financing or leasing to purchase and maintain Auto Insurance and in most cases provide confirmation of insurance.

The finance company (vehicle manufacturer, dealer, bank, credit union, mortgage broker) will usually offer insurance on the financed amount.  This policy will pay off the balance of your financing if you are disabled and cannot work, or you die.  Auto Insurance is very different, it pays for the cost or repair damage caused (or the actual cash value of the vehicle, if written off) to the vehicle from an “insured peril” (ie. covered by the policy).  Without Auto Insurance, you would be stuck paying for this damage by yourself.

WHY YOU NEED IT

Basic Autopac for most vehicles would include $200,000 of Liability coverage. Liability will cover if someone sues you as a result of your Vehicle ownership or use.

Bodily Injury – Residents of Manitoba cannot sue you for bodily injury or pain and suffering, but would be entitled to make a claim under the Personal Injury Protection Program (P.I.P.P) regardless of fault.

If you have an accident and are held at fault or partially at fault for the accident while your vehicle is outside Manitoba, you will be responsible to pay for the bodily injury and pain and suffering caused to the occupants of the other vehicle. Liability coverage will pay for these expenses up to the limit of coverage that you have purchased. Coverage is only provided where the vehicle is being used in Canada or the United States.

How Much Coverage do you need?

When insuring your Vehicle, it is important to think about each coverage individually to determine how much coverage you need.

For damage to your own vehicle you need to consider if the vehicle was destroyed or a total loss payout, how much would the Actual Cash Value of the vehicle be. The Basic Autopac policy for vehicles such as Cars, Vans and Light pickup trucks will come with a $50,000 Limit of Insurance for damage to the vehicle. This does not mean that you are paid this limit if the vehicle is written off, it simply means that this is the maximum amount that Autopac will pay out for the damage to your vehicle. If the value of your vehicle (including taxes) is over $50,000, you can increase the limit as needed to ensure that you have a sufficient limit of insurance.

When insuring your Vehicle, it is important to think about each coverage individually to determine how much coverage you need.
For damage to your own vehicle you need to consider if the vehicle was destroyed or a total loss payout, how much would the Actual Cash Value of the vehicle be. The Basic Autopac policy for vehicles such as Cars, Vans and Light pickup trucks will come with a $50,000 Limit of Insurance for damage to the vehicle. This does not mean that you are paid this limit if the vehicle is written off, it simply means that this is the maximum amount that Autopac will pay out for the damage to your vehicle. If the value of your vehicle (including taxes) is over $50,000, you can increase the limit as needed to ensure that you have a sufficient limit of insurance.

If you are purchasing a brand new or almost new vehicle, you can purchase New Vehicle Protection Policy. If you add this coverage, and you have a total loss claim within the first 2 years (from when the vehicle was brand new), you will be receive back the full purchase price of the vehicle instead of the Actual Cash Value.

What’s Covered

The minimum coverage that can be purchased – sometimes referred to as the “Basic Coverage” for the majority of vehicles such as cars, vans, motorhomes and light pickup trucks provides the following coverage.

All Perils (Owned Vehicle)

All Perils coverage will pay for the cost of repairing damage to your own vehicle, which occurs from a vehicle collision.  All Perils will provide coverage for Comprehensive Claims, such as fire, explosion, vandalism, hail, glass breakage, theft and flooding.

It’s important to note that some vehicles DO NOT get All Perils coverage included with the “Basic Autopac”, such as:  Vehicles registered with an Antique plate, Semi-Trailers, Off-Road Vehicles (ORV), Motorcycles, and certain classes or Heavy Trucks.   

Choosing the Right Deductible for you…

Deductible

You are responsible for paying your deductible, at the time you have the damage to get your vehicle fixed. If it turns out that you are not held at fault then you are entitled to a refund of your deductible that you paid. However, if you are held partially at fault, you will get a partial refund of the deductible, based on the percentage of fault determined.

If you have an anti-theft device (which includes immobilizing systems, car alarms, anti-theft bars) in your vehicle and it is defeated, Autopac will reduce your deductible in half if theft of the entire vehicle occurs.

Type of Claim Passanger Vehicle And Light Pickup Deductible
Basic Autopac Autopac Extension Optional Deductible Packages
Deductible $500 $300 $200 $100
Collision or Upset, Fire, Hail, Lightning and theft of vehicle parts $500 $300 $200 $100
Glass Replacement $500 $300 $200 $100
Theft or Attempted Theft of Vehicle $500 $300 $0 $0
If you have Anti-Theft Device $250 $150 $0 $0
Glass Repair $500 $0 $0 $0
Collision with Animal $500 $0 $0 $0
Vandalism $500 $300 $0 $0

 

Loss of Use

If your vehicle is damaged or stolen, it could take some time to get it fixed. You could be waiting for Autopac to review and approve the claim, waiting for the autobody shop to order parts and to have time to schedule you in for the repair work. In the meantime, your vehicle may not be driveable.

Loss of Use coverage will pay for the cost of alternative transportation. Most people will use this to pay for a Rental Vehicle, however it can also be used to pay for a taxi or bus.

Basic Autopac will ONLY provide loss of use if your vehicle is stolen. If you are involved in a Collision, you may be entitled to get back the cost of a rental vehicle under the other party’s liability coverage, however they must be considered 100% at fault. The problem can be that you must incur the expense and hope that Autopac will determine that the other party is at fault, since there is no guarantee they will find this way. So you could be stuck paying the bill yourself.

By purchasing the OPTIONAL loss of use coverage, you can get coverage for accident/damage to the vehicle regardless of fault and you can have the coverage without the 72 hour waiting period and with higher limits. If you want to rent a bigger more expensive car the Level 2 is recommended. If you can’t get a rental car (ie. Under 21, rural area with no rental vehicles), it’s a good idea to get the Level 2, as taxi’s are typically far more expensive than getting a rental car.

Liability

Basic Autopac for most vehicles would include $200,000 of Liability coverage. Liability will cover if someone sues you as a result of your Vehicle ownership or use.

Bodily Injury – Residents of Manitoba cannot sue you for bodily injury or pain and suffering, but would be entitled to make a claim under the Personal Injury Protection Program (P.I.P.P) regardless of fault.

If you have an accident and are held at fault or partially at fault for the accident while your vehicle is outside Manitoba, you will be responsible to pay for the bodily injury and pain and suffering caused to the occupants of the other vehicle. Liability coverage will pay for these expenses up to the limit of coverage that you have purchased. Coverage is only provided where the vehicle is being used in Canada or the United States.

Damage to Property Owned by Others – covers for your personal liability, if you cause property damage to another party’s “Property”. If you have an accident and hit another person’s vehicle, house, garage, etc., this will pay for this damage. Another example is you could hit a semi-truck tractor and cause damage to the truck, trailer and the contents of the trailer.

If you are sued as a result of your vehicle ownership, the liability will cover the costs of defense, regardless of whether you are ultimately held at fault.

Reider Insurance recommends that clients purchase a minimum of $2,000,000 Liability if the vehicle will remain in Manitoba and recommend $10,000,000 if the vehicle will go outside the province. If the vehicle will go to the United States – even if it’s only one trip per year, we recommend the $10,000,000 limit.

Personal Injury Protection Plan (PIPP)

If you are injured in a vehicle accident and you are a Manitoba resident, you cannot sue or claim for your pain and suffering. However the Personal Injury Protection Plan (PIPP) will compensates you for economic losses such as lost income and expenses incurred as a result of treatment of the injury – and is paid regardless of fault. This coverage is provided for the drivers and all passengers in each vehicle.

PIPP will provide coverage for Manitobans anywhere in Canada or the United States.

 

  • Income Replacement Indemnity – If you are injured and can no longer work at your job, you will get paid 90% of your Net Income. There is a 7 day waiting period. This coverage is provided based on your Gross Income being up to $98,000. If your income is greater than $98,000 you can purchase an additional insurance policy called the Income Replacement Indemnity (IRI) Extension coverage – click here for details.
  • Medical Expenses – costs not normally covered by Manitoba Health, such as physiotherapy and chiropractic treatments.
  • Rehabilitation Expenses – costs of assisting person to return to pre-accident condition and covers Physical Therapy, Occupational Therapy, and employment retraining for people who can’t return to previous work.
  • Personal Care Expenses – costs of providing personal care assistance, personal care, housekeeping, shopping and similar services.
  • Special Expenses – costs of hiring someone to replace you if you are no longer able to look after your child if under age 16 or a disabled adult or to work for a family business without pay.
  • Student Indemnity – compensates students for every school year they cannot complete due to injuries
  • Permanent Impairment – provides a one-time payment to an injured person when the accident involves the loss of physical or mental function or scarring and this impairment will last your entire life.
  • Death Payments – If unfortunately someone died in a vehicle accident, this would cover funeral expenses, grief counselling for spouses or common law partners and any dependent kids. If the deceased person was looking after a child under age 16 or disabled adult this may also provide for the cost of hiring a caregiver.

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*  Please note all types of policies have exclusions, conditions and limitations.  This information is not intended to be a full explanation of coverages and in all cases the wording of the actual insurance policy will apply.