Among the Provincial laws in Alberta is one that requires each resident motorist to carry some form of liability insurance. In light of that fact, why would one of Alberta’s car-owning residents decide to by Family Protection Coverage?
What is family protection coverage?
Also known as SEF44, the addition of that provision to an insurance policy fills one of the holes that has been created by the limits in the mandatory liability insurance. The level of coverage provided by SEF44 guarantees compensation for any family that has been in an accident that has created more than $200,000 worth of damages.
What sorts of situations highlight the benefits that are linked to possession of family protection coverage?
Suppose that a driver that carries the liability protection is returning home with his family from a weekend in the mountains. At a traffic light, he gets rear-ended. One of his daughters hits her head on a section of the car, after feeling the impact. She needs to see a pediatric neurologist. That causes the medical expenses associated with the accident to rise. The $200,000 coverage furnished by the liability insurance does not cover all of the medical expenses. That gap could be filled, if the family had purchased the SEF44.
Suppose that the same driver gets hit on a snowy day in March, while driving to work. The amount of damage is not great, but the responsible driver has forgotten to pay for his liability insurance. Because he lacks that insurance, the money that it could provide cannot be made available to the driver that was hit. The full cost of repairs must be covered by the innocent driver’s own insurance policy, as per a Personal Injury Lawyer in Edmonton.
Imagine the same driver becoming involved in another collision. This time, no family members are in the car, but the responsible driver leaves the scene. That victim of a hit-and-run accident cannot use the other driver’s liability insurance to cover the costs of the damage, along with any medical expenses. Again, ill fortune has shown this one poor motorist the value that is linked to possession of SEF44’s protection (family protection coverage).
What is the extent of coverage provided by this added provision?
The provision covers a driver and family to the same extent as their own policy’s 3rd party liability coverage.
If a driver buys this provision, is the driver’s family protected in provinces outside of Alberta?
Yes, the family with that special provision has been guaranteed coverage, if their car gets into an accident in another province. The creators of the provision acknowledged the likelihood that a family might travel together on vacation. Moreover, that vacation might entail journeying to a point of interest that lies beyond Alberta’s borders.