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Basic Plate Registration Coverage vs Auto Insurance Policy

According to the information provided by SGI Canada, more than half of licensed residents in Saskatchewan lack additional coverage. Interestingly, the liability limit of $200,000 on license plates was established back in 1985. When adjusted for inflation, this amount translates to approximately $88,000 in today’s dollars. Considering that 90% of adults drive and that Canadians experience an average of five accidents throughout their lifetime, it becomes evident that automobile accidents are a more frequent occurrence than house fires. In fact, car accidents are the leading cause of trauma and death among individuals under the age of 45.

Car insurance is a crucial aspect of vehicle ownership, providing financial protection for accidents, damages, or theft. In Saskatchewan, drivers can choose between Basic Plate Registration Coverage and Auto Insurance Policy. While the former offers minimum coverage, the latter provides enhanced protection and additional benefits.

 

Basic Plate Registration Coverage

Basic Plate Registration Coverage is the minimum required insurance for vehicles in Saskatchewan. Under this coverage, a vehicle is subject to a $700 deductible, which is the amount the policyholder must pay before the insurance coverage kicks in. The settlement for a vehicle under this coverage is based on its actual cash value, which refers to its depreciated value since the time of purchase.

The basic license plate insurance also includes $200,000 in third-party liability coverage. This coverage pays for injuries or damages caused by the policyholder’s driving. It is important to note that all registrants in Saskatchewan are automatically set to no-fault coverage unless they choose to opt-out. No-fault coverage allows individuals to file a claim and seek compensation, regardless of who is at fault.

While basic license plate insurance provides the minimum coverage required by law, it may not offer sufficient protection in certain scenarios. Some exclusions under this coverage include family security, unlicensed vehicle storage coverage, damage to non-owned vehicles, loss of use, and replacement value. It is essential to assess your specific needs and consider additional coverage options to ensure comprehensive protection for you and your vehicle.

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Auto Insurance Policy: Enhanced Coverage and Benefits

An Auto Insurance policy (also referred to as an Auto Pak) is insurance that allows drivers to increase their third-party liability coverage and enjoy additional benefits. One of the key advantages of an Auto policy is the ability to choose higher third-party liability limits, ranging from $1 to $5 million. This increased coverage is particularly beneficial in cases of accidents where the policyholder is at fault and liable for significant property damages or injuries.

Car insurance policies also include coverage for family security at no additional cost. This coverage protects the insured if they receive damages caused by uninsured or underinsured motorists. For example, if an impaired driver does not have insurance to cover vehicle damages, injuries, or other expenses, family security coverage can provide the necessary financial protection.

In addition, car insurance policies offer coverage for damage to vehicles the policyholder does not own and damage to their unlicensed vehicle or trailer while in storage. These coverages can be valuable when the named insured is driving a vehicle they do not own, such as a rental car or when the vehicle listed on the policy is in storage but is unlicensed.

The extended auto insurance also provides options to lower the standard $700 deductible. Policyholders can choose lower deductibles, starting from as low as $50, depending on their preferences and budget. Additionally, the insured can purchase lower Road Hazard Glass deductibles to minimize out-of-pocket expenses in case of windshield damage caused while driving.

One of the notable advantages of an Auto Pak policy is the availability of Replacement or Repair Cost coverage for brand-new owned or leased vehicles. This coverage can be added to the policyholder’s vehicle up to 60 months from the delivery date, protecting the vehicle’s value from depreciating.

Another beneficial coverage option available under Auto Pak policies is Loss-of-use coverage. This coverage helps policyholders pay for a rental car if their vehicle is involved in an accident caused by a covered peril and requires repairs. Loss of Use coverage is particularly valuable when there is no responsible third-party insurance to cover the cost of a rental car.

 

Basic Auto Insurance vs. Auto Pak Accident Benefits

In addition to the enhanced coverage options mentioned above, Auto Insurance policies also provide enhanced accident benefits compared to basic auto insurance. Accident benefits refer to the coverage for medical expenses, income replacement, and other related costs in case of an accident.

Basic Auto Insurance
Auto Pak Coverage
  • $700 deductible.
  • $200,000 in third-party liability.
  • Up to 90% of net income to a maximum of $102,673.
  • Death benefit pays 45% of the deceased’s net income, plus 5% for every dependent under 21.
  • Education allowance pays up to $49,928 for the training and education of the dependent spouse, and $10,887 pays for funeral expenses.
  • Coverage for family security, damage to your unlicensed vehicle while in storage, damage to cars you do not own, and loss of use are not covered.
  • Replacement costs for new vehicles are not covered.
  • As low as a $50 deductible.
  • Up to $5 million in third-party liability
  • An additional 10% of net income is covered (for 100%).
  • Death benefit pays 50% of the deceased’s net income plus any additional amounts needed to cover up to 5% for each dependent.
  • Education allowance pays up to an additional 50% above basic auto insurance.
  • Death benefit pays up to an additional 50% above basic auto insurance.
  • Coverage is available for family security, damage to an unlicensed vehicle while in storage, damage to cars you do not own, and loss of use.
  • This can include replacement costs for new vehicles.

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When considering car insurance options in Saskatchewan, it is important to understand the differences between Basic Plate Registration Coverage and Auto Insurance Policy. While Basic Plate Registration Coverage provides the minimum required coverage, it may not offer sufficient protection in certain scenarios. On the other hand, Auto Pak policies offer enhanced coverage options, increased third-party liability limits, and additional benefits such as family security, coverage for damage to non-owned vehicles, and rental car expenses.

Assessing your specific needs and considering the potential risks and expenses associated with accidents or damages can help you make an informed decision about the type of car insurance that best suits your requirements. By opting for an Auto Pak policy, you can ensure comprehensive protection and peace of mind while driving on the roads of Saskatchewan.

For more information about car insurance options coverage details or to get a personalized quote, reach out to Harvard Western Insurance, the trusted insurance provider in Regina and throughout Saskatchewan.

Disclaimer: This article is for informational purposes only and should not be considered as legal or financial advice. It is always recommended to consult with a qualified insurance professional for personalized guidance regarding car insurance options.

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