Alberta Automobile Insurance Act and Policy (SPF 1)

Alberta Automobile Insurance Act and Policy (SPF 1)

According to the Alberta Automobile Insurance act and Policy (SPF 1), you must follow insurance vehicle act regulations. Suppose,  If you drive a car in Alberta, you are obliged by law to have vehicle insurance. Because the Standard Automobile Policy is controlled by the regional act, all plans’ fundamental terms and conditions are the same.

The current automotive insurance process in Alberta is tort-based. This means that the motorist at fault has the larger financial liability for a motor vehicle crash. Private insurers offer liability insurance, but the provincial government governs car insurance.

So what is Alberta’s Standard Automobile Policy, often known as an SPF No. 1?

Let’s know.

Table of Contents

Alberta Automobile Insurance Act and Policy

Here,  below, describes the Alberta Automobile Insurance act and Policy as Section-A, Section-B, and Section-C.


As previously stated, Section A protects you from any hurts or damage to persons or property caused by your vehicle.

Suppose you are responsible for an automobile accident. In that case, your insurance institutes will put themselves in your shoes and inquire about the facts of the occurrence, analyzing any proof of physical harm and types of losses supplied by the victim person.

When the insurance institutes are unable to achieve a settlement, the claim will be defended. An injured person has two years after the date of the occurrence to file or settle a Counterclaim with the courts, allowing them to proceed with talks or lawsuits. Insurance institutes will retain the services of a defense lawyer from your side.

You will identify personally when the injured side files of Claim a Statement. However, since you have insurance coverage, your Insurer will intervene from your side. Your insurance company has the authority under the Policy to settle or file a lawsuit as they see appropriate.


Section B benefits are those paid by insurance companies to their own insured in the event of injury. Regardless of negligence, this section of the SPF No. 1 is also required by law as well.

In the case of an accident, your Section B benefits will transfer to any occupants of your vehicle. If you struck a pedestrian, the pedestrian might be entitled to Section B payments under your coverage.

The policy reason for Section B benefits is to offer you immediate access to the benefits you have to get life back on track following an injury. Medical expenditures, funeral/death expenses, and disability compensation are all covered.

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Examples of typical Section B health benefits include, and are not limited to, ambulance costs, chiropractic care, physiotherapy, massage therapy, and medicines for up to two years after the event.

If you’ve got killed in a car accident, there will be money available to pay for your burial and benefits for your dependents, as well as an amount for bereavement counseling.

The amount available for your dependents on determined by your age and household status at the time of the accident. In addition, disability benefits will be available to reimburse you for lost income. Section B advantages are capped at $50,000.


This section mostly addresses clash impact or damage to your car, whether you were on offense or not, as well as rollovers. If you aren’t responsible, your insurance organizations will generally evaluate the harm and have to repair or write off as total damage before pursuing reimbursement from another insurance organization.

It is an optional but strongly recommended cover. If you are hurt by an uninsured vehicle and, on the other side not have collision coverage, you will most likely have no recourse for compensation for car damage or total loss.

When filing a claim under this section, you will almost certainly be required to pay a deductible, which is the amount stated in the contract that you have agreed to pay before the insurance company’s duty to pay kicks in.

Before your insurance policy covers you, the damage to your car must exceed the amount of your deductible. If you have a larger deductible, your insurance premiums will likely be cheaper since you will be liable for a greater portion of the cost of your automobile is destroyed.

For example, suppose you have a $500 deductible and $1500 in car damage. You will be responsible for $500, and your insurance carrier will be responsible for $1000.

Conversely, suppose you have a smaller deductible. However, your insurance rates will be higher since the insurance company is responsible for a greater portion of the damage in the case of a loss.

For example, if you have a $1000 deductible and your vehicle has $1500 in damage, you will pay $1000, and the insured company will pay $500.

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Six Common Car Insurance Coverages

There are the six most popular automobile insurance coverage options. Some of these coverages are required in your state, while others are optional.

Let’s have a look below…

Coverage for Liability

In most countries, vehicle liability insurance is needed. So does Canada. Drivers are obliged to acquire at least the minimum level of liability coverage prescribed by state law. Two divisions of liability are as follows:

If you cause an accident, bodily injury responsibility may assist pay for the costs of another person’s injuries.

On the other hand, Property damage responsibility may assist you in paying for harm to another person’s money while traveling.

Coverage for Collisions

You have an injury with a vehicle or hit an object, however, collision coverage may reimburse to repair your vehicle. Collision coverage is generally an option. It may, however, you need by your vehicle’s easement or creditor.

Comprehensive Coverage

Comprehensive coverage may assist in covering damage to your vehicle caused by theft, fire, hail, or vandalism. If your automobile damages result from a covered danger, comprehensive coverage may assist pay for repairs or replacement.

This Policy has a premium, which would be the amount you must pay out of cash before your Insurer will reimburse you for a covered claim.

Comprehensive coverage is generally voluntary, but if you’re leasing or paying off your vehicle, your lender may demand it.

Coverage for Medical Payments

Suppose you and your customers or families who are operating the insured car were harmed in an accident. Medical payments coverage may support paying for medical expenses. Hospitalization, X-rays, surgery, and other medical costs may cover.

Some states require medical payments coverage, while others make it voluntary.

Protection Against Personal Injury

Personal injury protection, often known as PIP, is provided in just a few states. PIP, like medical payments coverage, may assist in paying for your medical bills following an accident.

Furthermore, PIP may assist in covering additional expenditures acquired as a result of your injury, such as child care costs or missed income.

In certain places, personal injury protection is compulsory, whereas, in others, it is voluntary when offered.

Coverage for Uninsured and Underinsured Motorists

Uninsured motorist coverage may assist pay for your medical expenses or, in some jurisdictions, car repairs if you are hurting by a vehicle operator who does not have Insurance.

If an underinsured motorist hits you, it indicates that they have vehicle insurance, but the liability limits are insufficient to pay your medical expenses. This is when underinsured motorist coverage might come in handy.

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Additional Insurance Agreements

Where this Policy provides insurance claim, the Insurer must provide,

(1) Upon receiving notice of injury or damage to people and property, protect any person covered by this Policy by conducting such an inquiry, negotiating with the claimant, or settling any resulting claims as that the Insurer considers appropriate.

(2) Fight in person and on behalf of anybody seeking indemnification under this Policy.

(3) Pay any expenses levied against every person covered under this Policy in any legal lawsuit defended by the Insurance. And also, any interest accrued after entering the decision on that portion of the judgment falls inside the Insurer’s liability limit.

(4) In the circumstance of a person’s harm, cover all costs any person sum assured by this Policy for expenses for these kinds of medical assistance which may be instantly crucial at the time of these injuries sustained.

(5) Be responsible for up to the required amount established for the territory of Canada where the crash happened. That limit is more than the maximum indicated in section A of Item 7 of the applicant.

(6) Do not raise any defense to a claim that would not grow if the Policy had issues in the province and territory of Canada where the crash happened.

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Alberta Auto Insurance Changes 2023

Driver premiums have been steadily increasing because bodily injury claim costs have been rising at a rate that is significantly faster than growth.

To assure the industry’s stability and that customers have access to the best insurance options at competitive pricing, they have enhanced Alberta’s auto insurance system.

They took action in the fall of 2020 to stabilize auto insurance prices and provide medical coverage for Albertans injured in crashes, potentially saving drivers money.

These significant steps have been guided by recommendations made by an expert committee that independently assessed Alberta’s vehicle insurance system in 2020.


Insurance Act Alberta has set a maximum value for basic coverage to guarantee cheap and accessibility. Although there is no defined maximum amount for extra coverage since, by law, the Vehicle Insurance Rate Board (AIRB) controls automobile insurance prices in Alberta.

In the Alberta Automobile Insurance act and Policy, Section A coverage is required at a minimum of $200,000. Most individuals, however, opt to boost that coverage to at least $1,000,000 or $2,000,000 to guarantee they have enough coverage during claims or severe injuries to persons in the other vehicle/s, when $200,000 may not be enough to pay all claims.

Note that it is prudent to consult an automobile lawyer to settle your claim or agreement.



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