It is highly recommended that, in addition to the minimum amount of coverage required by law, you get what is known as a “package policy,” also known as “vehicle extension insurance.” This insurance, which might shield you for a million to five million dollars, is a nice bonus and something to feel secure about. Look at some of the compelling arguments in favour of a package policy:
Lessening of the Potential Taxpayer Base
In order to save money on your monthly premium, you may choose a deductible for your package coverage that is lower than the current state mandated minimum (currently $700.00). This will result in a lower deductible in the event that you are found to be at fault in an accident.
Enhanced benefits for victims of death and injury
Package insurance increases the payout in the event of an accident or death. Supplementing the required no-fault payments, these payments are optional. Part of this is figuring out how to replace the 10% of your net income that no-fault insurance doesn’t pay for. There is no way that income replacement benefits for reasons beyond your control will cover this amount. Choosing the package insurance is essential here.
There are now other precautions that may be taken.
With a package insurance, you may pick and choose the specific types of coverage you need, such as new-vehicle replacement, glass repair or replacement, loss of use, and rental car reimbursement.
Protecting the Whole Family
Such coverage, which is also referred to as a “family protection endorsement” or a “SEF 44” (which stands for “Standard Endorsement Form 44”), is essential in a variety of scenarios. A previous post titled “‘No-fault’ Does Not Necessarily Mean No Opportunity for Legal Recovery” discussed the possibility of filing a lawsuit in Saskatchewan to recover economic losses not covered by no-fault benefits or for damages for pain and suffering if the at-fault driver is convicted of impaired driving or other specified offences. This is one of the possible offences committed by the careless driver. If the other motorist is just carrying the bare minimum in insurance coverage, your legal victory in a personal injury lawsuit may not be enough to cover your costs. If you are ever found legally liable for damages, your family security insurance will cover the costs up to the policy’s limit.
The monetary worth of your loss is estimated to be about $31,000 each year, or $550,000 over the next 25 years (until age 65). Even if the reckless driver’s legal liability insurance paid for $200,000 of the total, it would still significantly impact your financial circumstances. To the extent that you have family security coverage, you are entitled to full payment for any economic loss your family incurs.
Full Legal Coverage, Even If It’s Due to Your Own Fault, Without Extra Fees
Even though Saskatchewan is a “no-fault” state, you may still be held liable for accidents you cause. Some examples include the situations when you are at fault for an accident and the state or province employs the tort system rather than the no-fault system, and the claims for economic damages mentioned above.
