Frequently Asked Questions

FAQ's - Frequently Asked Questions

What is auto insurance?
Drivers purchase auto insurance for vehicles such as trucks or cars to protect them from losses that may occur when they are driving them.

Am I required to purchase auto insurance if I own a vehicle?
If you drive a vehicle in the USA or Canada, you are legally required to purchase auto insurance.

What is the main reason for requiring auto insurance?
Auto insurance provides drivers with peace of mind, as well as financial security if they are ever involved in an accident.

Will the amount of depreciation of my vehicle affect my coverage?
Yes, your insurance provider will pay you less if you are driving an older car with a lot of mileage that is totaled in an accident.

What kind of optional coverage can I choose?
There are many options above your minimum required policy. These include collision insurance, family protection coverage, transportation replacement, etc.

What should I do if feel my insurance company has cancelled my policy unfairly?
If your insurance provider never provided a reason for the cancellation or you disagree with the reasons indicated, you should contact the consumer affairs division of your insurance company.

Will I receive a refund if my policy is cancelled?
You will be entitled to a refund of the unused portion of your premium if your auto insurance policy is cancelled before expiration of the time you have paid premiums.

Will my auto insurance policy be valid if I drive in Mexico?
You should check with your insurance provider because traffic laws in Mexico are very different from those in Canada and the US. You may require specific Mexican coverage.

What is split-limit liability car coverage?
Split-limit coverage uses 3 different numbers to specify the limits for bodily injury liability for each person, property damage liability and bodily injury liability for a single accident.

How do I know which representative will handle my claim?
Different claims representatives specialize in different types of claims so they will be assigned to your case based on the facts of your particular situation.

If I contact my insurance company to verify whether a loss is covered under my policy, can they record this as a claim, even if I don't receive any money from the insurer?
Yes, every claim is recorded by your auto insurance company.

What does actual cash value mean?
Because there are so many used vehicles on the road, every auto policy is written for actual cash value or ACV. This means that the values of your auto settlement are determined by similar vehicles currently on the market. ACV is based on the cost to replace your vehicle with similar new one, minus the depreciation based on the age of your vehicle.