Coverage
An auto insurance contract is simpler than you think.
There are three main sections:
- Section A covers your civil liability1. In other words, the damage you may cause to someone else in an accident. This coverage is mandatory and must be for at least $50,000.
- Section B covers the damage to your vehicle (collision, fire, theft, vandalism, etc.). It is optional.
- Additional coverage (like, replacement cost endorsement2) for which you may be eligible.
You can choose between one of three coverage combinations:
- Full coverage that combines civil liability, collision or upset3 insurance, and comprehensive4 insurance
- Partial coverage that combines civil liability and comprehensive insurance
- Minimal coverage that doesn’t include civil liability Plus, you can easily adjust your coverage and deductibles.
Simple, isn’t it? Now it’s up to you. With minimum effort, you can get an online quote right away. If you like what you see, you can even buy online!
NOTES
1. Civil Liability Insurance (Section A)
What is civil liability insurance?
This insurance is mandatory. It covers all damage that you could cause to the property of a third party if you have an accident in Quebec. It also covers material and physical damage that you could cause to a third party if you have an accident in Canada or the United States. AXA automatically covers you in the amount of one (1) million dollars.
Why one (1) million dollars?
Imagine what would happen if you were responsible for an accident with a fully loaded delivery truck. The truck’s content is spilled upon impact and damaged beyond repair. The damage cost is $800,000. If you are only covered for $50,000 (the minimum required by law), how will you pay the difference? The cost of damage caused by an accident can be enormous. That’s why AXA offers protection in the amount of one (1) million dollars. Note that any damage to your vehicle incurred in a motor vehicle accident for which you are not at fault will be payable under your “civil liability.”
2. Replacement cost endorsement*
This coverage is available if you own a new vehicle (purchased new)
Your vehicle may be brand new, but it lost some of its value the moment you drove it off the lot. That’s what’s called depreciation. Your vehicle depreciates more with every passing year, even though to you, it will still be new after one, two, three, or even four years.
If your vehicle is a total or even partial loss, would you be able to assume the cost of its depreciation?
That’s why you need a replacement cost endorsement**.
It offers the following advantages:
- In the event that your vehicle is a writeoff (because it was stolen and not recovered or because it was declared a writeoff after an accident), you will obtain a new vehicle with the same features, equipment, and options, with nothing to pay but your deductible.
- If your vehicle is partially damaged due to an accident, no depreciation will be applied. Other than the deductible agreed to in your insurance contract, you will have nothing to pay to have your vehicle repaired using new parts.
If you do not possess the replacement cost endorsement, your indemnity will be lower, because we will take depreciation into account.
**Some restrictions apply.
3. “Collision or Upset” Insurance
What is “collision or upset*” insurance (also called Section B2)?
It covers damages to your vehicle if you cause a collision with one or several vehicles or the accident only involves your vehicle (if your vehicle rolls into a ditch, for example, or if you collide with an object).
This insurance also covers damage to your vehicle if you are the victim of a hit-and-run.
If you choose this coverage, “comprehensive” (Section B3) insurance will be added automatically. Comprehensive insurance protects your vehicle against things like broken windows (if a rock cracks your windshield, for example) and against damage caused by fire, theft, or vandalism.
4. Comprehensive Insurance
What is “comprehensive*” insurance (also called Section B3)?
Comprehensive insurance protects your vehicle against things like broken windows (if a rock cracks your windshield, for example) and against damage caused by fire, lighting, theft (or attempted theft), vandalism, windstorms, hail, or floods. It also includes any damage caused to your vehicle if you collide with a person or an animal.
You are also entitled to Accident Insurance with Police Passeport AcciRoute™, you are insured in the amount of $15,000 in the event of your death (or the death of your spouse) due to a motor vehicle accident. This policy also includes an indemnity payable if one or both of you become permanently incapacitated due to an accident.
Police Passeport AcciRoute™ is applicable anywhere in the world where the accident occurs regardless of whether you or your partner were a driver, passenger, or pedestrian at the time of the accident.
You can also opt for the following additional coverage*:
With Globale 7 Auto™, you automatically get the most commonly requested types of coverage at a better price than if you purchased them separately.
