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Understanding car insurance coverages and terms


At MCT Insurance, our brokers are trusted advisors. When vehicle owners need to renew their insurance, it’s an opportunity for them to assess their car insurance with their MCT Insurance broker. As part of this assessment, our brokers will likely refer to specific insurance terms and coverages. Let’s outline common car insurance terms and insurance coverages which can help drivers.

Car insurance terms


A deductible is the amount of money a driver will be responsible to pay out of pocket before the insurance company covers the remainder of the claim. The amount of deductible paid will be dependent on the driver’s car insurance policy, which an MCT broker can help explain. Generally, if a driver chooses a higher deductible, they can benefit from lower insurance premiums.

Endorsements or riders

Sometimes riders/endorsements are added to insurance policies to provide additional coverages (or sometimes to limit certain coverages). For example, a vehicle owner could have a rental car endorsement as part of their insurance coverages. This endorsement could help cover the cost of a rental car if their vehicle was damaged in an accident after an insured claim. A MCT insurance broker can assess a policy to see if an endorsement or rider may be beneficial.


The amount paid for insurance on an annual basis or through a payment plan is called an insurance premium. Several factors, including a person’s years licensed, claims including conviction history and the type of vehicle they drive, can determine their premium.

Mandatory coverage

Third party liability coverage

Third party liability will provide coverage for property damage, injury or death. It could also help with legal expenses. Drivers should also ask about their liability limit and the type of damage which could be covered by their third party liability insurance, as there could be exclusions.

Accident benefits coverage

Accident benefits coverage is mandatory for drivers across Canada. This coverage could provide funds to help with expenses such as medical, rehabilitation and funeral expenses if a driver is injured. This coverage could also help with lost income if the driver is unable to work. The amount of coverage provided and situations which are applicable will depend on the policy.

Other car insurance coverages

Comprehensive coverage

If a vehicle is damaged from any peril other than by collision with another object, comprehensive coverage could help. Comprehensive could cover damage caused by falling objects, fire, theft, explosion, earthquake, windstorm, hail, rising water, malicious mischief, riot or civil commotion. Comprehensive coverage could also provide compensation for windshield repairs or replacement. A MCT Insurance broker can help drivers understand limitations of the coverage.

Collision coverage

If a driver collides with another vehicle or object, collision coverage could help with expenses. If the vehicle is beyond repair, collision coverage could provide cash value of the vehicle. Drivers can learn more about the coverage from their MCT Insurance broker, who can help them understand situations where the coverage would not apply.

Steer in the right direction

To help drive with peace of mind, contact an MCT Insurance broker. Our brokers will do a full review of a driver’s insurance to ensure they have the right coverage for their needs and suggest ways to enhance their coverage.