A Message from OPSEU/SEFPO’s Insurance provider, RGI Group:
We know that reading an insurance policy isn’t at the top of your to-do list. In fact, most people only glance at the cover page and then bury the policy details in a folder reserved for official and important documents.
We recommend reading it over to understand what you’re covered for. If you understand these important concepts, and you’ll find it a lot easier to understand your auto policy.
- Bodily Injury: Bodily injury covers you if you are found liable for injuries that require hospitalization or result in death. Bodily Injury liability is an integral part of third-party liability coverage. It will also pay for medical expenses and defense costs, as well as any settlements or lost wages incurred by the injured party.
- Collision: Collision coverage pays for repairs to the vehicle if it is damaged during a collision with an object or another vehicle, provided the insured driver is at fault or was victim to a hit-and-run. It is not mandatory, though lenders require it to finance or lease a car. The amount of coverage is based on the current value of the vehicle. Collision insurance may not make sense if your car is an older model, but ask your insurance professional to be sure.
- Comprehensive: Comprehensive insurance covers vehicle theft and damage not covered by collision, such as hail, objects falling on the vehicle, collisions with animals, fires and vandalism.
- Deductible: A deductible is the amount of money a policyholder has to pay out of pocket before coverage kicks in. Not every policy has a deductible — only collision and comprehensive coverage. Collision and comprehensive coverage costs can be controlled by raising your deductibles.
- Depreciation: Depreciation is the estimated loss of value of a vehicle.
- No-fault insurance: The idea behind this system is that drivers (and their providers) can’t sue other drivers (or their providers) for most injuries sustained. This allows the insurance companies to bring down their claim costs because of the drastic reduction in lawsuits. In this system, the insurer pays the policyholder regardless of which driver is at fault.
- Property damage (PD): Property damage coverage is also an integral part of third-party liability. PD will cover damages to someone else’s property caused by the insured driver.
- Uninsured/ underinsured: Uninsured or underinsured motorist insurance covers the medical expenses of the insured driver and passengers if they’re victims of a hit-and-run.
These terms should get you started to begin to understand the basics of your auto insurance policy. But, not to worry! If you have any questions, please do not hesitate to reach out RGI Brokers.
They will be happy to answer your questions. Always remember, there is no such thing as a dumb question!
RGI’s team of insurance professionals is standing by to answer your call. If you have questions about your insurance, we invite you to call us and speak to one of our team members.
We are available Monday to Friday, 9am until 4:30pm.
Toll Free: 833.90.GROUP