Automobile Insurance – More than just a pink card!


There are many features to the Alberta Standard Automobile Insurance Policy, also titled the “S.P.F. No. 1” in insurance jargon! Working in the insurance industry for over 25 years, we often come across individuals who are unclear about what coverage they have or what coverage options are available to them. Therefore, we thought it would be helpful to breakdown a standard automobile policy into the different areas of coverage available.


Section A- Third Party Liability
  • Covers bodily injury or death to any person, or damage to property of another party
  • Provided for the Insured as well as every other person who personally drives the automobile or personally operates any part of the vehicle with the Insured’s consent


Section B – Accident Benefits
  • Medical payments
  • Death, grief counseling, funeral and total disability benefits
  • Supplemented benefits respecting accidents occurring outside of Alberta
  • Uninsured motorists coverage

Please note that Section A and Section B are combined coverage and cannot be deleted or added independently of each other.


Section C – Loss Of or Damage To Insured Automobile
  • All Perils:  Insures loss or damage to insured automobile from all perils (subject to policy exclusions)
  • Collision or Upset:  Insures loss or damage to insured automobiles caused by collision with another object or by upset (includes coverage for a hit & run on your vehicle)
  • Comprehensive:  Insures loss or damage to insured automobiles from perils other than by collision with another object or upset
  • Specified Perils:   Insures loss or damage to insured automobiles caused by fire, lightning, theft or attempt thereat, windstorm, earthquake, hail, explosion, riot or civil commotion, falling or faced landing of aircraft or of parts thereof, rising water, or the stranding, sinking, burning, derailment or collision of any conveyance in or upon which the automobile is being transported on land or water.


Deductible Clause
  • Each occurrence causing loss or damage covered under Section C is considered a separate claim, and the Insurer’s liability is limited to the amount of the loss or damage less the deductible amount. In simple terms, the deductible is the amount that you pay in the event of a claim and the insurer will cover the damage over and above your deductible amount.


Family Protection Endorsement (S.E.F. 44)
  • Provides limited protection to the Insured, his/her spouse and certain relatives in the event bodily injuries are caused by another motorist who has less Third Party Liability Insurance than the Insured – or none at all.


There are many additional Endorsements that can be added to your policy, which we will discuss in our next Blog post.
When purchasing an additional vehicle or substituting a vehicle, please ensure that you contact us PRIOR to operating the vehicle to ensure that adequate coverage is in place. There is limited coverage for newly acquired automobiles under the Alberta Standard Automobile Insurance Policy.


Hopefully you have found this summary of coverage helpful, and as always, please do not hesitate to contact our Office as we would be more than happy to answer any questions you have!


Thank you,
The Costen & Associates Team