Auto Insurance 101: Class Definitions

Auto Insurance

In our three part series on Personal Auto Insurance, we thought it may be helpful to outline some of the common characteristics of a personal automobile policy, starting with the many different class definitions that exist.

 

Insurance Companies rate and subsequently charge a premium based on how your vehicle is being used. The more frequent the vehicle is being driven or used, the higher the premium charged to account for the increased exposure and possibility of a claim.

 

Although there is some variation in class definitions among Alberta automobile Insurers, there are many that are considered to be standard and we have defined them here:

 

Class 01 – Pleasure Use

– Principal operator must be 25 years of age, or older
– The vehicle may not be used for professional or vocational purposes
– The vehicle may have only two drivers, excluding Occasional Drivers
– Each driver must be licenced for a minimum of three years
– The vehicle may not be driven to work
– The vehicle may be driven a maximum of 16,000km per year

Class 02 – Commuting/Pleasure

– Principal operator must be 25 years of age, or older
– The vehicle may have only two drivers, excluding Occasional Drivers
– The vehicle may be driven a maximum of 25km to work, one way

Class 03 – Commuting/Pleasure

– Principal operator must be 25 years of age, or older
– Business use for dentists, doctors, lawyers or professional engineers
– No drivers under 25 years of age unless a separate Occasional Driver premium is charged
– This classification is also used in the event there are more than two drivers over 25 years of age, or if the vehicle is driven to work more than 25km one way

Class 05 – Occasional Driver (Female)

– Used for Occasional Drivers under 25 years of age where the vehicle’s Principal Operator is a Class 01, 02, 03 or 07
– A separate premium is charged on the Liability, All Perils and/or Collision premium

Class 06 – Occasional Driver (Male)

– Used for Occasional Drivers under 25 years of age where the vehicle’s Principal Operator is a Class 01, 02, 03 or 07
– A separate premium is charged on the Liability, All Perils and/or Collision premium

Class 07 – Business Use/Pleasure

– Principal operator must be 25 years of age, or older
– No drivers under 25 years of age unless a separate Occasional Driver premium is charged
– Business use is not applicable for vehicles used for transporting materials or tools to place of employment, or for delivery (commercial automobile classifications would apply)

Class 08 – Pleasure Use

– Principal operator is a married male under age 21, residing with their spouse

Class 09 – Pleasure Use

– Principal operator is a married male age 21 to 24, residing with their spouse

Class 10 – Pleasure Use

– Principal operator is a single male age 16, 17, or 18

Class 11 – Pleasure Use

– Principal operator is a single male age 19 or 20

Class 12 – Pleasure Use

– Principal operator is a single male age 21 or 22

Class 13 – Pleasure Use

– Principal operator is a single male age 23 or 24

Class 18 – Pleasure Use

– Principal operator is a single female, under age 21

Class 19 – Pleasure Use

– Principal operator is a single female age 21 to 24

 

If you are unsure of how your vehicle is currently being rated, we recommend taking a look at your policy declaration page or giving us a call and we would be happy to review it with you!

 

We hope you have found this information helpful! Please stay tuned for part two and three of our personal automobile series!

 

Thank you,

The Costen InsuranceTeam