Glossary

Accidents

Any incident, whether you were at fault or not, or whether a claim was made or not.

Accident benefit

If you’re injured in a car accident, you’ll receive accident benefits. If you are killed in a car accident, your family receives them. Accident benefits include replacement for lost income, medical benefits, death benefits and funeral expenses, to name a few. They are paid regardless of who is at fault in an accident. Certain exclusions may apply. Please check your policy for details.

Additional drivers

Any licensed drivers (related to you or not) with your permission to operate your vehicle(s) regardless of whether they will be driving your vehicle regularly or not.  

Adjuster

A licensed employee or independent adjuster trained to evaluate the merits of your claim and make recommendations regarding settlement.

Age

For insurance purposes, age means the full number of years since birth at your policy’s start date.

All perils

This is a combination of collision coverage or upset and comprehensive coverage. It’s the broadest optional loss or damage coverage available and requires a deductible.

Anti-theft device discount

Savings to which you may be eligible if your vehicle is equipped with an after-market (not factory-installed) anti-theft device wired to the ignition. We require written proof that the system was professionally installed.

At-fault accident

A collision caused by you, as determined by the rules of evidence set out by the province. It’s possible to be in an accident and be considered "not at fault" or even "partially at fault."

Bodily injury

This is part of your basic auto insurance "liability" coverage. It covers legal action taken against you for injuries or death resulting from an at-fault accident, as well as legal fees and the cost of settling a claim.

You must choose a "limit" for this coverage. This limit determines the maximum amount that will be paid out.

Cancellation

The termination of an insurance contract by either you or your insurer in accordance with the contract provisions and provincial laws.

Caregiver and dependent care option

If you’re the primary caregiver for someone and you are injured in an accident, this increases your weekly benefit so you can hire someone else to care for the person in your charge.

Certificate of insurance

The certificate of insurance is a document listing your coverage. It includes the name of the insurer, the policy period and the limitations of coverage.

Claim

A formal request to your insurer that you are seeking reimbursement due to a loss.

Class of licence

A designation that outlines the kind of vehicles you’re legally permitted to drive. Your class can be found on your driver's license. Class of license differs from province to province.

Customized or modified, vehicle

A vehicle that has been changed from its original condition in any way to improve or alter its performance, appearance or value.

Deductible

A predefined amount of money that you must pay before an insurance company will pay a claim. Changing your deductible amount will impact your insurance premiums.

Disappearing deductible

Reduce your deductible by 20% for every claim-free year. After five consecutive claim-free years, your deductible goes to zero. As soon as you make a claim, your deductible returns to its original amount and you can start the disappearing act again.

Driving record

A history of your driving experience, including any accidents and convictions (ADD) as well as your insurance payment history. We use it to help calculate your auto insurance rate.

Driver training certificate

Proof of the successful completion of a certified driver education course.

Effective date

The day your new policy or a change to your policy begins.

Endorsement

An endorsement is used to add or delete coverage or in some instances change policy conditions.

Expiration notice

A written record of the end date or termination date of your insurance policy.

Graduated licensing (Ontario only)

A two-level process (G1 & G2) that all new drivers must complete before being fully licensed. You must obtain 12 months of driving experience at each level before taking a road test for a full driver's licence. However, you can take a G2 road test after eight months if you complete a certified driver-training course. You have up to a maximum of 5 years to complete both levels.

Indemnity

Compensation for a loss that puts you in the same financial position as you were prior to the loss. Indemnity can come as a monetary payout or a replacement.

Lapse

When your insurance policy is terminated at the time of renewal.

Liability

Your financial responsibilities when your actions cause harm to someone and/or their property.

Liability card

Your liability card, also known as a "pink slip", is proof that your vehicle is insured. Be sure to keep it in your car at all times as you’ll need it if you are in an accident.

Licensed driver

A person legally allowed to drive a vehicle in Canada or the United States.

Licensing province

The Canadian province or territory from which your current driver's license was issued.

Optional coverage

Also known as an endorsement, this is coverage not included in your basic insurance package. Additional premiums may be charged for optional coverages.

Pink slip

Your pink slip, also known as a "liability card", is proof that your vehicle is insured. Be sure to keep it in your car at all times as you’ll need it if you are in an accident.

Policy

A contract that outlines all the coverage you’re getting from an insurance company that serves as proof of an insurance contract.

Policy number

The identification number of your policy. It’s listed on your policy and your liability card or "pink slip."

Policy term

The amount of time that your insurance policy is in force. The typical policy term is one year.

Premium

The amount you pay for your insurance coverage to an insurance company.

Principal driver

The person who will be driving your vehicle most frequently.

Private passenger automobile

A vehicle operated by an individual or family for personal use, excluding recreational vehicles.

Registered owner

The person whose name appears on the vehicle registration form as the registered owner of the vehicle.

Renewal

An extension of a policy term for an additional policy period.

Suspended licence

When a driver is not allowed, by law, to operate a vehicle. Licence suspensions are usually a result of major traffic convictions.

Underwriting

The process of assessing your situation and calculating your premium.

VIN (vehicle identification number)

This is a vehicle’s serial number. It's located on a small metal plate on top of the dashboard and in the vehicle’s registration form.