Auto Insurance: Basic Coverage vs Auto Pak Benefits
Did you know that more than half of licensed Saskatchewan residents don’t have additional coverage beyond their basic plate insurance? The $200,000 liability limit on your license plates was set back in 1985, and it is only worth about $88,000 in today’s dollars when adjusted for inflation.
Did you know that car accidents are actually more common than house fires? In fact, they’re the leading cause of trauma and death for people under 45 years old.
Car Accident Reality in Canada
90%
of Canadians experience an average of five accidents throughout their lifetime
What is Basic Plate Registration Coverage?
Basic Plate Registration Coverage is the minimum required insurance that comes with your Saskatchewan license plates. Every time you register a vehicle and get a license plate, you automatically get a basic insurance package.
Think of this Basic Plate Coverage as your starter kit; it meets the legal requirement to drive, but it’s the bare minimum.
It gives you three foundational protections:
What protection does Basic Plate Registration include?
- Repair Coverage (for your car): If you’re in an accident, your basic coverage will pay for repairs to your vehicle, but only after you pay your deductible. The standard deductible is $700.
- Personal Injury Coverage: It covers your medical costs and injuries if you’re hurt in a collision.
- Liability Coverage: This part pays for property damage or injuries you cause to other people, up to a limit of $200,000.
To learn more about Injury Insurance, [Click Here]
What is an SGI Auto Pak Policy?
| Coverage | Basic plate coverage: | Auto Pak coverage: |
|---|---|---|
| 3rd-party liability | $200,000 | Options: $1 million, $2 million, $3 million, $4 million or $5 million |
| Damage to your licensed vehicle | You pay first $700 deductible | Deductible options: $50, $100, $200, $350, $500 or $700 |
| Damage to unlicensed vehicles and vehicles you don’t own | Not available | Deductible options: $50, $100, $200, $350, $500 or $700 |
| Family security | Not available | Matches 3rd-party liability option up to $2 million |
| Loss of use of your vehicle | Not available | Indemnity limit options: $1,000 or $2,000 |
| Replacement or repair cost | Not available | Protects your new vehicle from depreciation in the 1st 60 months from delivery date |
| Road hazard glass | You pay first $700 deductible | Deductible options: $50, $100, $200, $350 or $500 |
All Rights Reserved by SGI Canada. The information contained in this table is the sole property of SGI Canada.
Important Notice
Different insurers have different limits available for some coverages. To obtain a quote for Sandbox Mutual or Portage Mutual, please don’t hesitate to contact an advisor from our office.
Auto Pak Coverage: More Protection and Peace of Mind
An SGI Auto Pak is additional insurance coverage you can purchase to enhance your basic plate insurance protection. It fills important coverage gaps and provides greater financial security for Saskatchewan drivers.
What extra protection do I get with an Auto Pak (Extended Coverage)?
- Higher Liability Protection: Increase your liability limit from $1 million up to $5 million for major accidents.
- Protection Against Uninsured Drivers: Covers you and your family if injured by a driver with insufficient insurance.
- Rental Car Coverage: Protects vehicles you rent or borrow against damage.
- Lower Deductibles: Options to choose a lower deductible (as low as $100) for collision claims.
- Road Hazard Glass: Get a lower deductible for windshield and window damage.
- Rental Car Reimbursement: Covers the cost of a rental car while yours is being repaired.
- New Vehicle Replacement: For new vehicles, get replacement or repair cost coverage for up to 60 months.
- In-Storage Coverage: Protects your unlicensed vehicles or trailers while they are stored.
How does an Auto Pak boost my accident benefits?
- Income Replacement: It increases income replacement coverage from 90% to 100% of your net income if you cannot work after an accident.
- Increased Death Benefits: Payments to your family are 50% higher than basic coverage. This includes higher lump-sum payments for dependents and survivors.
- Education Allowance: Provides an education allowance that is up to 50% higher than basic coverage, helping dependent children continue their schooling.
Who should consider buying an Auto Pak?
- You Own Valuable Property: If you have significant savings, a home, or other assets that could be at risk if you were sued after a major accident.
- You Drive a New Vehicle: If your vehicle is new, and you want coverage that pays for replacement cost (not just depreciated value) after a severe loss.
- You Rent Cars Often: If you frequently rent vehicles for business or travel, you need reliable damage coverage for them.
- You Want Maximum Protection: If you drive in busy traffic, travel internationally, or simply want the lowest possible deductible and minimal out-of-pocket costs after an accident.
How Much Does Auto Insurance Cost?
The cost of auto insurance varies based on several factors, including whether you have basic coverage only or add an Auto Pak policy.
Q: What factors affect my insurance rates?
A: Your auto insurance costs are influenced by:
- Your driving record and claims history
- Where do you live in Saskatchewan
- Your coverage options and limits
- Your deductible choices
- Whether you use your vehicle for business purposes
Q: Are there ways to lower my car insurance costs?
A: Yes, you can potentially lower your car insurance costs by:
- Maintaining a clean driving record
- Bundling multiple vehicles on one policy
- Choosing a higher deductible (if you can afford it in case of a claim)
- Reviewing your coverage annually to ensure it still meets your needs
Comparing Basic Coverage vs. Auto Pak Benefits
When deciding between basic coverage and adding an Auto Pak, it helps to see a direct comparison of benefits.
| Coverage Feature | Basic Plate Insurance | Auto Pak Policy |
|---|---|---|
| Deductible | $700 | As low as $50 (your choice) |
| Third Party Liability | $200,000 | Up to $5 million |
| Inconme Replacement | Up to 90% of net income | 100% of net income |
| Death Benefits | 45% of income plus 5% per dependent | 50% of income plus additional amounts for dependents |
| Family Security | × | ✓ |
| Damage to Non-owned Vehicles | × | ✓ |
| Unlicensed Vehicle Storage | × | Available to Add |
| Replacement Cost | × | Available (conditions apply) |
| Loss of Use (rental car) | × | Available to Add |
Frequently Asked Questions
How much car insurance liability do I really need?
Liability coverage protects your assets if you cause an accident and are sued. Simply put, you need enough to protect everything you own. Most insurance experts recommend a minimum of $2 million in liability coverage today. The higher limit provides necessary protection against the high costs of legal fees and accident claims.
Here are the basic factors to consider:
- Protecting Your Assets: The more savings, equity in your home, or other assets you have, the higher your liability limit should be.
- Driving Environment: If you frequently drive in busy cities or cross provincial/international borders, your risk of a major claim increases.
- Passenger Risk: Having passengers regularly in your car increases the potential size of a lawsuit if an accident occurs.
How do I choose the right deductible?
Your deductible choice is a direct trade-off between your monthly payment (premium) and what you pay after an accident.
- Choose a HIGH Deductible if… you want a lower monthly premium and have emergency savings to easily cover the out-of-pocket cost if you make a claim.
- Choose a LOW Deductible if… you prefer the peace of mind that comes with minimal out-of-pocket costs after an accident, or if you drive a newer, more expensive vehicle.
Key Rule: Never choose a deductible you can’t afford to pay immediately.
Disclaimer: The information provided in this article is intended as a general guide. Please consult your specific insurance policy for precise coverage details, including conditions, definitions, and exclusions that apply to your individual insurance.
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Posted in Auto on February 25, 2022 by Hope Prost
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