Heavy Truck & Bus Insurance

Why Do You Need It

If you are a Manitoba resident, in order to drive any vehicle on a road in Manitoba, you are required by law to purchase a vehicle Insurance policy called Autopac from Manitoba Public Insurance, along with Manitoba licence plates and registration and a valid Manitoba driver’s licence.

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 vehicle 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 if you die.  Vehicle 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 Vehicle Insurance, you would be stuck paying for this damage by yourself.

Description

 

Heavy Trucks

Heavy trucks include Trucks, Truck Tractors and can also include a van, SUV or passenger vehicle if the back seats have been removed. These trucks have a gross vehicle weight of 4500 KG or more.

Trucks can be used to haul equipment and/or some trucks have equipment which is permanently attached. Any equipment which is permanently attached to the truck would be considered part of the truck and considered as part of the value of the truck. Any equipment which is NOT permanently mounted will not be covered by the Autopac policy, however we can provide you a separate business insurance policy to cover this. It’s also important to understand that the contents of the truck or the cargo being hauled will not be covered, however we can provide you a separate policy to provide this coverage over and above the Autopac. TIP: If you want to cover the equipment under the Autopac policy, you can permanently mount it to the chassis/frame.

Heavy Trucks need to have licence plates and registration, however in some cases the coverage that comes with the Basic Autopac, DOES NOT INCLUDE all of the same options provided for a passenger vehicle or light truck.

 

The type of coverage provided usually depends on four factors:

  • The Gross Vehicle Weight (G.V.W.) of the Truck
  • The Radius of Operations (How far away the truck is taken from your address or your business address if registered to a corporation)
  • The Commodities that are being hauled in, or on the truck
  • If the truck is being used to haul commodities (ie. goods) or passengers for compensation.

 

Buses

Buses can include any style of vehicle designed to be a bus (such as school buses, private coaches, city busses). In additional passenger vehicles designed to carry 11 or more passengers (including the driver) are also considered buses.

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. For some trucks Basic Autopac may provide $50,000 limit, however you can increase this value. 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. It’s important to remember to include any permanently mounted equipment and the value of taxes in determining the amount of coverage needed.

It’s a good idea to keep all bills and receipts for any parts or labour or bodywork done to the vehicle as these may be of use in attempting to negotiate a higher price if the vehicle is ever written off. It’s also a good idea to take and keep pictures of your vehicle to show the condition prior to a claim.

 

Certificate of Inspection – Safety Inspection

Trucks – Inspections

Most passenger vehicles (such as cars, vans, SUV, etc.) in Manitoba are only required to have a Certificate of Inspection (Autopac calls these COI’s), completed either when you purchase a vehicle or when you move to Manitoba. These same rules also apply to light pickups (4499 KG and under), however for Heavy Trucks, there is a completely different set of rules.

Heavy trucks are required to get inspections called Periodic Vehicle Mandatory Inspection (PVMI’s). As a general rule if your truck weight category is 4,500 KG’s or more, you will need to get an inspection completed every year and keep copies in the vehicle.

For complexity, the weight category is actually the manufactures recommended gross vehicle maximum weigh (GVWR) for the truck. This does not necessarily have to match the Gross Vehicle Weight (GVW) which is the maximum weight you choose to show on your Autopac and Registration.

Semi-Trailers (and trailer converter dollies) with a GVWR of 4,500 KG or more are also required to have an annual PVMI, as well as Farm trucks with a GVWR of 21,953 KG or more.

Some Trucks that do not require an annual inspection:

Trucks that are not truck-tractors, registered as farm trucks;

A vehicle that is registered and restricted to highways in and adjoining a remote community;

A Truck or Bus used in a public transportation system owned by or operated on behalf of the City of Winnipeg or City of Brandon.

Buses – Inspections

Buses (including Passenger vehicles designed to carry 11 or more passengers – including the driver) must also have annual PVMI inspections.

 

Buses that do not require annual inspection:

Buses will require a PVMI inspection at the initial purchase, however subsequent annual inspections will be waived if:

Owned by an individual and used only for personal transportation

Owned by a Non Profit organizations such as churches or charity clubs

 

Safety Fitness Certificate (SFC)

The Safety Fitness Certificate has a confusing name. It is completely different than the Certificate of Inspection (COI) or Periodic Vehicle Mandatory Inspection (PVMI).

You are required to get a Safety Fitness Certificate PRIOR TO being allowed to get licence plates, registration or Basic Autopac Coverage. It is required for Trucks (4500 KG or more – Gross Vehicle Weight (GVW) or Truck Tractors, school busses or any private passenger vehicle with a seating capacity of 11 or more persons including the driver. You only need to get one Safety Fitness Certificate per individual, corporation – even if you have multiple vehicles.

You are not required to have a Safety Fitness Certificate if you ONLY insure Farm trucks and/or vehicles used exclusively for personal use.

Safety Fitness Certificates are issued on a one year basis and must be renewed every year.  For more information on SFC’ – see https://www.gov.mb.ca/mit/mcd/

 

The Safety Fitness Certificate is required by the Government of Manitoba through the Manitoba Infrastructure Department and in co-ordination with all of the other provinces in Canada, you will be issued a National Safety Code (NSC) Number. The concept behind this is that they will track all of your convictions, inspections and accidents.

Convictions can include from both carriers and drivers, including moving violations, load securement violations and unsafe vehicle equipment violations.

Inspections include Commercial Vehicle Safety Alliance (CVSA) inspections that are recorded on your drivers/vehicle (including if the vehicle is placed out of service)

Accidents can include all reportable accidents in any Canadian jurisdiction including property damage, injury or fatality, although accidents where driver is found not at fault, will not count negatively on your file.

If Manitoba Infrastructure determines that you are a high risk carrier, they can ask (require) you to make change and take attention including up to an audit which would include all of your trucking files.

Ultimately a rating is kept and this rating can also have an impact on the cost of your insurance – so careful attention is necessary.

New customers may present a valid temporary SFC with a blank expiry date.

 

New Safety Fitness Certificate Customers

If you are applying for a new Safety Fitness Certificate, you will need to arrange insurance and provide a binder of insurance. We can provide this policy to you.

New NSC customers are required to produce a valid paper SFC to register an SFC-eligible vehicle and obtain an NSC number. A valid SFC includes a temporary SFC with a blank NSC number and a blank expiry date.

You can apply for a Safety Fitness Certificate (SFC) Online at: https://web22.gov.mb.ca/SFCOR/

Or in person at:

Motor Carrier Safety, Unit C – 1695 Sargent Avenue, Winnipeg, MB

What’s Covered?

Some heavy trucks do not include coverage for All Perils and in some cases the deductible is higher. It’s extremely important to understand the coverage that comes with the “BASIC AUTOPAC”. In most cases this coverage will not be sufficient and you will need to purchase a separate policy through Manitoba Public Insurance – Special Risk Department to provide coverage over and above the coverage that comes with (or is not included with) Basic Autopac.

 

All Perils (Owned Vehicle)

If the vehicle has All Perils coverage, it will provide coverage for the cost of repairing damage to your own vehicle, which occurs from a vehicle collision. All Perils will also 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 (No Collision, No Comprehensive) included with the “Basic Autopac”, including the following:

Antique Truck – see antique vehicle section

Common Carrier Truck/Private Truck/Contract Vehicle – which is driven over 161 KM outside Manitoba (truck travels over 161 KM from the Manitoba border to either other Provinces or the USA).

Driveway Truck – which is driven over 161 KM outside Manitoba (truck travels over 161 KM from the Manitoba border to either other Provinces or the USA).

Dealer Truck – coverage can vary – should check to see what is included if you have dealer plate – and this can depend on gross vehicle weight and use.

Reciprocity Truck – No Insurance in Manitoba

Repairer Truck – includes coverage for Collision and Upset only – no coverage for Comprehensive claims.

Trucks with a Gross Vehicle Weight (GVW) of over 16,330 KG have NO All Perils coverage, however the following trucks still have All Perils

 

All Perils (Owned Vehicle)

If the vehicle has All Perils coverage, it will provide coverage for the cost of repairing damage to your own vehicle, which occurs from a vehicle collision. All Perils will also 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 (No Collision, No Comprehensive) included with the “Basic Autopac”, including the following:

Antique Truck – see antique vehicle section

Common Carrier Truck/Private Truck/Contract Vehicle – which is driven over 161 KM outside Manitoba (truck travels over 161 KM from the Manitoba border to either other Provinces or the USA).

Driveway Truck – which is driven over 161 KM outside Manitoba (truck travels over 161 KM from the Manitoba border to either other Provinces or the USA).

Dealer Truck – coverage can vary – should check to see what is included if you have dealer plate – and this can depend on gross vehicle weight and use.

Reciprocity Truck – No Insurance in Manitoba

Repairer Truck – includes coverage for Collision and Upset only – no coverage for Comprehensive claims.

Trucks with a Gross Vehicle Weight (GVW) of over 16,330 KG have NO All Perils coverage, however the following trucks still have All Perils coverage: Farm trucks, Fishing trucks, Dealer plates, Repair plates and Drive-away trucks used within Manitoba.

Semi-Trailers – No coverage is included with the Basic Autopac Plate, – see Trailer Section

Deductible

You are responsible for paying your deductible, at the time when you have the damage to your vehicle fixed. If you want to purchase a lower deductible option, with most heavy trucks this is only available if you purchase an OPTIONAL policy through Manitoba Public Insurance – Special Risk Extension. It takes time for us to get a quote from MPI – SRE so it’s advisable to come in a at least a few weeks in advance to allow us time to get a quotation for you prior to you needing coverage.

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.

Choosing the Right Deductible for you…

Type of Claim Trucks with Basic Autopac that have a $500 deductible
Basic Autopac Autopac Extension Optional Deductible Packages MPI-SRE Separate Policy
Deductible $500 $300 $200 $100 $250
Collision or Upset, Fire, Hail, Lightning and theft of vehicle parts $500 $300 $200 $100 $250
Glass Replacement $500 $300 $200 $100 $250
Theft or Attempted Theft of Vehicle $500 $300 $0 $0 $250
Glass Repair $500 $0 $0 $0 $250
Collision with Animal $500 $300 $0 $0 $250
Vandalism $500 $300 $0 $0 $250

Note: Some trucks with $500 deductible may not be able to purchase extension coverage through Autopac, however may still be able purchase through Manitoba Public Insurance – Special Risk Extension separate policy

Type of Claim Trucks with Basic Autopac that have a $800 deductible
Basic Autopac Autopac Extension Optional Deductible Packages MPI-SRE Separate Policy
Deductible $800 N/A N/A $500 $250
Collision or Upset, Fire, Hail, Lightning and theft of vehicle parts $800 $500 $250
Glass Replacement $800 $500 $250
Theft or Attempted Theft of Vehicle $800 $500 $250
Glass Repair $800 $500 $250
Collision with Animal $800 $500 $250
Vandalism $800 $500 $250

Note: Some trucks with $800 deductible option may not qualify for lower deductible options through MPI – SRE.

Type of Claim Trucks with Basic Autopac no all perils coverage
Basic Autopac MPI – SRE Separate Policy Deductible Packages Autopac Extension Packages
Deductible N/A $5,000 $2,500 $1,000 $500 N/A
Collision or Upset, Fire, Hail, Lightning and theft of vehicle parts $500 $5,000 $2,500 $1,000 $500 N/A
Glass Replacement $500 $5,000 $2,500 $1,000 $500 N/A
Theft or Attempted Theft of Vehicle $500 $5,000 $2,500 $1,000 $500 N/A
Glass Repair $500 $5,000 $2,500 $1,000 $500 N/A
Collision with Animal $500 $5,000 $2,500 $1,000 $500 N/A
Vandalism $500 $5,000 $2,500 $1,000 $500 N/A

Note: Trucks with No All Perils on their Basic Autopac policy can purchase a separate policy through Manitoba Public Insurance – Special Risk Extension that can provide All Perils coverage subject to the deductible choices provided above.

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 drivable.

Loss of Use coverage will pay for the cost of alternative transportation.

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, but there is no guarantee they will find this way. So you could be stuck paying the bill yourself.

Loss of Use is not available through Autopac for heavy trucks, however by we can provide an OPTIONAL policy though Manitoba Public Insurance – Special Risk Extension.

Loss of use coverage, you can get coverage for accident/damage to the vehicle regardless of fault. You can select a limit as you require. If you are using your vehicle at work, it would be a good idea to check and see if you could find a rental vehicle company that could provide the type of vehicle that you require (ie. Truck Tractor) and also determine the cost. You can purchase a daily limit of up to the amount you need, and you can also specify a period of time that you want to have coverage.

If it will take longer to fix your vehicle, it will be important to take a longer period of time.

Rental Vehicle Coverage

If you rent vehicles for personal use, you can just purchase a Rental Vehicle Policy through Autopac – see Rental Vehicles

If you rent a vehicle for business purposes or in a business name, you will need to purchase a separate policy through Manitoba Public Insurance – Special Risk Extension (SRE).

 

Non Owned Auto Policy – Standard Policy Form (SPF #6)

A Non-Owned Auto Policy also called an SPF#6, provides liability coverage for a rental vehicle that you rent. Leased vehicles that are rented for less than 30 days are also usually considered rented vehicles.

Liability options are $1,000,000, $2,000,000, $5,000,000, $7,000,000, $10,000,000

 

Legal Liability for Damage to Hired Automobiles (SEF #94)

This coverage provides physical damage coverage for the rented vehicle by adding All Perils coverage.

Cargo Insurance

Cargo Insurance can be purchased as an OPTIONAL coverage and we can provide a separate policy through either Manitoba Public Insurance – SRE or other private insurance companies that provide Cargo coverage.

A Cargo policy can provide coverage for commodities that are in or on the vehicle including the vehicle and trailer or combination of one or more semi-trailers. The coverage can include cargo on flat decks, dry vans, temperature controlled trailers, containers, etc. You can select a limit of insurance that meets your needs but we recommend determining the maximum amount you could ever be hauling and using this as the maximum exposure.

You can add coverage for Debris Removal (ie. overturned truck/trailer spills all over the side of highway) and you can also get coverage for Earned Freight (which would reimburse the lost freight charges from not being able to deliver the freight).

In addition, coverage can be provided while goods are kept in a terminal including off loading or storage trailers while in transit.

If you are hauling only goods that you own, you can get coverage for Owned commodities, however if you are hauling goods of others, you can get Non Owned Commodities Coverage.

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Liability

Basic Autopac for heavy trucks will usually include $200,000 of Liability coverage, however some trucks will not get any liability coverage:

Common Carrier Truck/Private Truck/Contract Vehicle – which is driven over 161 KM outside Manitoba (truck travels over 161 KM from the Manitoba border to either other Provinces or the USA)

Driveway Truck – which is driven over 161 KM outside Manitoba

Reciprocity Truck – No Insurance in Manitoba

You cannot legally operate any vehicle without purchasing Liability insurance, but you can purchase a separate policy through Manitoba Public Insurance – Special Risk Extension.

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.

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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.