If you operate a motor vehicle in Alberta, you are legally required to carry motor vehicle insurance. The Alberta Standard Automobile Policy (SPF 1) is governed by provincial legislation, and therefore the basic terms and conditions are the same for all policies.
The mandatory level of Section A coverage under the Alberta Standard Automobile Policy is $200,000. However, most people choose to increase that coverage to at least $1,000,000 or $2,000,000 to ensure they have enough coverage in the event of multiple claims arising from a single incident, or very serious injuries to people in other vehicle(s), where $200,000 may not be sufficient to cover all claims.
How is Alberta’s Standard Automobile Policy (SPF 1) Structured?
The Alberta Standard Automobile Policy (SPF 1) is broken out into three sections:
- Section A covers you for any injuries or damage to people or property that you caused with your vehicle. This section is commonly referred to as PLPD, or the Public Liability and Property Damage. The coverage under Section A of the Alberta standard Automobile Policy (SPF 1) is mandatory for all insured drivers.
- Section B covers you for any medical treatment or disability benefits for you and any of your passengers. Along with Section A, the Section B coverage is also mandatory.
- Section C covers you for physical damages to your vehicle. Unlike the other sections, Section C is optional coverage.
There are other optional endorsements for things like glass coverage or an SEF 44 Family Protection endorsement.
Section A
As noted above, Section A covers you for any injuries or damage to people or property that you caused with your vehicle. If you are unfortunately at fault for a motor vehicle accident, your insurance company will “stand in your shoes” and investigate the circumstances of the incident, analyze any evidence regarding physical injuries, and other heads of damages (such as wage loss or out of pocket expenses) provided by the injured party.
If the insurance company is not able to obtain an early settlement, then they will defend the claim. An injured party has 2 years from the date of the incident to either settle, or file a Statement of Claim with the courts, which allows them to carry on with either negotiations or litigation. Your insurance company will hire a defence lawyer on your behalf.
If the injured party files a Statement of Claim, you will be named personally, but because you have liability insurance, your insurance company will respond on your behalf. The policy gives your insurance company the authority to settle or litigate as they see fit.
Section B
This is also called Accident Benefits, and they are no-fault benefits, meaning that accessing these benefits will not have an impact on your insurance rates.
Section B accident benefits cover you for any medical treatment or disability benefits for you and any of your passengers. It would also cover pedestrians struck by your vehicle.
Regarding medical treatment, it is important to be aware of the Minor Injury Regulation that came into force in 2004. It caps the number of treatments for physiotherapy from 10 – 21 visits, if the claim is deemed “minor”. However, your treatment provider may recommend further treatment to your insurance company.
There is also a monetary cap for other treatments such as chiropractic treatment ($750), massage and acupuncture ($250 each).
Section B of the Alberta Standard Automobile Policy (SPF 1) will cover ambulance charges and relevant prescription expenses. If you have been injured in a car accident and are deemed disabled from work, Section B also offers disability coverage for the injured driver or passenger. As well, there is a benefit payable for homemaking services if you are totally disabled.
Finally, Section B will provide some coverage for death or funeral benefits. The maximum coverage for more serious injuries is $50,000 for up to 2 years.
Section C
As the final section of Alberta Standard Automobile Policy, Section C mainly covers collision damage to your vehicle, whether you are at fault or not, including a rollover. If you are not at fault, your own insurance company will typically appraise the damage, have it repaired or written off as a total loss, and then pursue the other insurance company for recovery (often called Subrogation).
It is optional coverage, but highly recommended. If you are struck by an uninsured vehicle and do not carry collision coverage, you will likely not have any recourse for recovery for your vehicle damage or total loss of your vehicle.
It also covers specified perils such as theft, fire, or storm (ie hail damage).
** Please note that this article is to only provide general information. It cannot be considered as legal advice. If you have any questions or concerns, or have been involved in a motor vehicle accident, please contact Braithwaite Boyle Injury Law at 780-451-9191 and one of our lawyers would be happy to assist you.
Injured in a Car Accident? Know Where You Stand.
After a crash, insurance companies move fast. You should too. The benefits and coverage available under Alberta’s Standard Automobile Policy can be complex, and what you don’t know can cost you.
Before you accept a settlement or assume your benefits are capped, speak with a personal injury lawyer who understands how Section A, B, and optional coverages like SEF 44 can impact your claim.
At Braithwaite Boyle, we help injured Albertans understand their rights, deal directly with insurers, and get the compensation they deserve for medical expenses, lost income, and long-term impacts. Your consultation is free, and you pay nothing unless we recover compensation for you. Don’t wait to file your car accident injury claim! Contact our team of car accident injury lawyers near you for a free consultation and learn how we can support your case.