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Despres-Pacey Insurance Brokers Limited - Glossary

Accident Benefits
Provides benefits if you are injured in an automobile accident, regardless of who caused the accident.

A person who investigates and settles losses, usually for an insurance carrier.

An agent is an individual who sells insurance products for ONLY ONE COMPANY and generally sells only its products.

All Risks Policy
Coverage by an insurance contract that promises to cover all risks of direct physical loss or damage except those specifically excluded in the policy.

An Act of God
An Act of God is a flood, earthquake or any other accident or event arising from natural causes and without human intervention, of such a nature of magnitude that it could not have been foreseen or prevented by reasonable care or foresight. Contrary to popular belief, Acts of God are sometimes insured against.

Auto insurance
Automotive insurance is a form of financial protection for you and your family. The premium you pay to the insurance company ensures you'll be covered financially, should anything ever happen. When you buy insurance, you're buying financial protection and peace of mind. Your insurer uses the premiums of thousands of other vehicle owners to pay for the financial loss of those who are involved in collisions and other mishaps.

A broker is an individual who sells insurance products for many different insurance companies. This allows them to compare prices and coverages to best suit individual clients.

No Fault
Ontario has a no-fault automobile insurance system. Regardless of who is at fault in the accident, your automobile insurance policy assumes financial responsibility. Fault still has to be determined to determine which section of your policy responds.

This is the optional portion of your insurance policy that pays to repair the physical damages to your vehicle when it is involved in an insurable accident, in which a portion is your fault. Any repairs paid out are in addition to the deductible option and the claim is regarded as a chargeable accident to your policy. This may result in a rating change and therefore an increase in premium.

Optional coverage to your policy that covers the repair of broken glass, vandalism, fire or theft to your vehicle. Payments are for the vehicle only and are subject to the deductible chosen. In the event of a comprehensive claim, the personal contents in the vehicle are not covered under the auto policy.

The deductible is what you are responsible for paying as part of the overall insured loss. This means that you have to cover that amount of any repair bill and the insurance policy pays the rest. Any damage that costs less than the deductible is your responsibility.

Direct Compensation - Property Damage
This is the mandatory portion of your auto insurance policy that pays to repair the physical damages to your vehicle, when you are involved in an insurable accident that is not your fault. This type of claim is not regarded as a chargeable accident to your policy and therefore will not affect your rating or premium.

Protects you if someone else is killed or injured or their property is damaged. It will pay for legitimate claims against you up to the limit of your coverage, and will pay the costs of settling the claims.

Uninsured Automobile
Protects you if you are injured or killed by an uninsured motorist or by a hit-and-run driver. Covers damage to your automobile caused by an identified uninsured motorist.