Vehicle

A vehicle can be defined as an automobile, an automobile trailer or semi-trailer. The insurance for a vehicle is under the automobile policy.

The policy will cover the vehicle and the equipment such as a sound system. Also covered is the damage or injury that occurs as a result of the use, operation or ownership of the vehicle.

You can choose the limit of liability, Section C coverage and deductible for your vehicle as long as you meet the minimum provincial requirements. Liability coverage (PLPD) is mandatory.

Do note that automotive-parts have limited coverage under the property policy. Please ask your agent or broker for specific personal advice on your automobile policy.

Vehicle insurance is classed as either personal or commercial. Personal insurance includes using your vehicle to go to and from work. You can have some business use for your vehicle under personal insurance such as driving to your client's location, doing bank deposits or attending seminars. If you are reimbursed for your mileage then business use (Class 07) is what you should see on your policy declaration.

If you are a contractor and you pick up parts or carry tools then you should have commercial insurance. Often the registration office will help with this decision. They will ask you what is the use of your vehicle and you could have to purchase commercial plates. If you use your vehicle for business and are paid to carry passengers,freight or do delivery then your class will be business.

Commercial insurance includes farm use. A farmer gets a special pricing for his personal vehicle. Farm trucks are generally rated light (up to one ton) and heavy (over one ton).

Classic or antique vehicles have special insurance considerations. These vehicles will usually have appraisals done and the insurance company agrees to pay a certain amount in a loss. There can be extra coverage for spare parts. Deductibles are usually lower then in the regular market. There is often a limitation on the use of the vehicle. An example of such limitations would be no commuting and no more then 5000 km per year.

If your vehicle does not travel on public roads and does not require registration then you do not need to purchase insurance. This is not uncommon with a farmer who will have an old truck that never is used on the public roads. There is no liability coverage as the farmer has decided that it is not necessary.