Insurance coverage offers protection to drivers if their vehicles have been damaged or they have suffered an injury as a result of a crash. But what if these damages are caused by intentional acts? Are drivers covered and guaranteed compensation? To learn more about what your coverage does and does not cover, read through our comprehensive guide below.
What does an intentional act mean?
Before we get into the details about whether your car insurance coverage will protect you against intentional damage, we first need to define what exactly an intentional act is. As you probably already guessed, an intentional act is caused when someone makes a premeditated decision. And when it comes to car insurance, intentional damage or harm is caused when a driver premeditated their actions before acting on them.
Are intentional or criminal acts covered by my insurance company?
So, will your standard policy provide coverage in the event you cause property damage or injure someone while you are operating a motor vehicle? The short answer is no. Car insurance does not protect motorists if the harm done results from an intentional act. Here are some scenarios where your auto policy will not cover you:
Intentionally damaging a vehicle or personal items
If you are operating a motor vehicle and decide to intentionally act in a manner that causes property damage to the vehicle itself or any of your personal belongings, and your insurance company determines that the damage was not accidental, you can anticipate a denied insurance claim.
Driver intentionally causes injuries to another person
Another scenario where your insurance will not offer protection is if you perform an intentional act that causes injuries to a third party. For example, if you intentionally crash into another driver due to road rage, hit a pedestrian you don't want to wait for to cross the intersection and any other intentional acts that lead to physical injuries or death.
A driver intentionally causes property damage
Lastly, if a driver intentionally damages other vehicles with their own or ruins someone's home property while behind the wheel of their car, insurers may also deny your claim.
What is covered by auto insurance?
While intentional acts are not covered by a standard policy, there are several protections offered by multiple auto insurance policies that all motorists are required to purchase. However, there are additional coverage options available should you wish to supplement your basic insurance. Here are the different types of auto insurance available to Canadian drivers:
Mandatory insurance coverage
While the following insurance policies are mandatory, depending on the province or territory you live in, the minimum coverage limits will vary. Here are the types of mandatory insurance coverages:
Third-party liability insurance
Third-party liability insurance coverage will protect you in the event you accidentally cause property damage or an injury to a third party while operating a motor vehicle. Should the injured person/persons or property owner file a claim against you for damages, third-party liability insurance will cover the cost of repairs, replacements, medical bills, legal fees, and other associated expenses that may arise from your legal claim, up to your coverage limits.
Accident benefits coverage
Accident benefits coverage is another mandatory insurance policy that will benefit you if you are involved in a car accident and suffer an injury, regardless of who is at fault for the collision. This car insurance also protects your passengers and any pedestrians involved. Should any party suffer an injury, accident benefits will cover the cost of medical bills, rehabilitation, lost wages, and other associated bills that you may incur.
Uninsured motorist insurance
Uninsured automobile insurance is the final mandatory policy required by all Canadians. This insurance will protect you if you are involved in a crash with another driver who is uninsured or underinsured. It essentially guarantees that you will be fairly compensated for your losses following an accident. Uninsured automobile insurance also protects you if you are involved in a hit-and-run accident with another driver who flees the scene.
Optional insurance coverage
While basic coverage works for many drivers, others prefer to supplement their insurance policies with the following:
Collision car insurance
Collision car coverage is a type of car insurance that protects policyholders if their vehicle is damaged in a crash for which they are found at fault. Collision car insurance will cover costs associated with repairs and will cover the cost of a replacement, should you experience a complete vehicle loss as a result of the crash, up to your policy limits. Keep in mind that the insured person will need to pay a deductible before their insurance policy covers the remaining costs.
Comprehensive coverage
Comprehensive coverage is similar to collision car insurance. However, comprehensive car coverage will repair your vehicle if it is damaged as a result of a non-collision event. For example, if your car is damaged due to theft, vandalism, and other circumstances listed in your policy details. Again, before your insurance policy kicks in, you will need to pay a deductible to your insurance policy.
Accident forgiveness
One final type of optional car insurance coverage popular among Canadian drivers is accident forgiveness. Accident forgiveness is additional coverage that can be added to your car insurance policy as an endorsement to protect your driving record and to help prevent your insurance premium from increasing if you have an at-fault accident claim.
Note: coverage varies by province.
What happens if your auto insurer believes your claim was caused by intentional or criminal acts?
When you file insurance claims with your insurance provider, insurers will conduct an in-depth investigation into your claim to determine whether or not the damage caused was a result of intentional acts or by accident. Should insurers come to the conclusion that the damaged property or injuries were caused by intentional acts, there are a couple of consequences that could occur:
Denial of your insurance claim
If you lie during your insurance claim, the first thing that will occur is the denial of your claim. Should this occur, you will not have coverage for the damaged property or injuries, which will now be your responsibility to pay for out of your own pocket. This, of course, can significantly impact your finances and lead to other consequences down the line.
Cancellation of your car insurance policy
Beyond the denial of your insurance claim, it's likely that your insurance coverage will be cancelled entirely. When this happens, the reason for the cancellation will be listed on your driving history. As a result, it could make it difficult for you to get coverage from other insurance providers in the future, which will disable you from driving legally.
Potential insurance fraud charges
Lastly, if your insurer believes you intentionally acted in order to get compensation under false pretences, you may be charged and convicted of insurance fraud. Because fraud is in the Criminal Code of Canada, you could face financial penalties and jail time for your actions. Additionally, you could also lose your driver's licence.
How to file an insurance claim
So, you've just been in an accident. While it can be overwhelming, it's important to remain calm. The first thing you need to do is assess yourself and passengers for any injuries. If you are injured, you need to call the police as soon as possible so you can receive medical assistance. If no injuries are reported, move your vehicle to the side of the road if possible. This will prevent a traffic jam and lower the risk of another collision occurring. Afterwards, here's what you need to do:
Document the damage
Get out of your vehicle when it's safe to do so and assess the damage. You'll want to take as many photos and videos of the scene, along with the damage done, as you will need to submit this to your insurance company.
Exchange information
Once the damage has been documented, you can go ahead and exchange information with the other driver involved. Typically, you'll want to take a photo of their driver's licence and their insurance papers. This information will also need to be filed with your insurance company for your claim to be processed.
Phone the police if necessary
Now, depending on how much damage is involved and the province or territory where the accident occurs, you may need to call the police and get a police report. It's essential that you know the legal requirements and laws in your area, as reporting an accident to the police is often mandated in certain situations.
Contact your insurance provider
Once you've gotten home, you can contact your insurance company. An insurance agent will ask you to provide details of the accident along with other information about what happened. Be prepared to stay on the phone for at least 30 minutes.
Speak with your claim adjuster
Once an insurance agent opens your claim, you'll receive an email or letter in the mail in a couple of days with information about your insurance claim and your adjuster. Your adjuster will be responsible for handling your claim moving forward. They will also conduct their own investigation into what happened.
Get a quote for vehicle repairs
Now that you've been working with an adjuster, they will likely ask you to get a quote for your vehicle damages. Once a quote has been provided, you can submit the costs to your insurance company and have your vehicle repaired.
Receive compensation for your costs
Lastly, once your claim has been approved by your insurance adjuster, you will receive your compensation. If you believe that the compensation offered is not fair, you are allowed to negotiate with your adjuster until you come to an agreement.
Once an agreement has been reached, you will need to sign release papers indicating that your claim is now finished and cannot be reopened. After the papers have been signed, you'll receive money from your provider in the form of a cheque or direct deposit into your bank account.
Do I need to report a minor car accident to my insurance company?
If an accident happens and the damages do not appear serious, you may be wondering whether reporting a minor car accident to your insurance company is required. Generally speaking, as a driver, you should always inform your insurer if you've been in a car accident. While it may not appear that the damages or injuries are serious, the damages may not manifest for a couple of days.
Additionally, the damage to your vehicle could be much worse than it originally seems to be. Therefore, by not contacting your insurer as soon as possible, you can put yourself at risk of having to pay to repair your car or medical bills on your own. Ultimately, when it comes to any crash, it's best to inform your insurer to protect your own interests at the end of the day.
Who is at fault in a sideswipe accident?
So, you've just been in a sideswipe car accident. What happens now? To begin with, who's at fault in a sideswipe accident? A sideswipe accident occurs when two vehicles travelling in the same direction make contact with one another from the side as a result of one vehicle veering into the lane beside it. When it comes to these types of accidents, your insurance provider will conduct an investigation into the circumstances of the collision.
They will also review the police report from the day of the accident if the police were called to the scene. Following an inquiry, your insurance company will likely rule that the driver who did not check their blind spot or signal their intent before moving into the next lane is the driver who is at fault unless there were other circumstances involved.
How many car insurance claims are there a year in Canada?
The amount of claims per year in Canada will vary. However, in 2022, the total payout for the car insurance sector alone was approximately $16.3 billion. This means that car insurance providers in the country paid $16.3 billion back to policyholders in order to cover the damage caused by different types of collision and non-collision events.
What happens if I hit a car without knowing?
Hitting a car without knowing can be overwhelming. In the event that you hit a parked car unknowingly and the other driver is not present, the best thing you can do is remain at the scene and contact the police and your insurance company if you have suffered any injuries. If you have not been injured, leave a note that outlines what happened, along with your details, to ensure that the other driver is able to contact you.
It's important to note that leaving the scene of an accident is a crime and could lead to fines and other consequences. While it's completely normal to panic in this situation, reporting the crash immediately is the best way to protect your interests in the future, especially if the other driver decides to file a claim against you for damages.
Should I buy an extended warranty for my vehicle?
When you purchase a new car, it comes with a type of warranty protection. This manufacturer's warranty normally covers repairs for a set length of time or kilometres. When this warranty ends, drivers have the option of purchasing what is known as an extended warranty. Different types of extended warranties are available. However, most warranties cover different parts of your vehicle and will pay for repairs or replacements if they break down during your warranty period.
So, is it worth buying? The truth is, it really depends on the type of vehicle you own and your driving habits. As an extended warranty is an added expense, it's important that you weigh the pros and cons of the protection it offers and ensure that you purchase your warranty from a reputable provider. If you don't want to purchase additional coverage, preventive auto maintenance is a good way to keep your vehicle in good condition for as long as possible.
Will my insurance cover me if my car is keyed?
Leaving your home to find your keyed car in the driveway is not how you want to start or end your day. Especially because new paint jobs cost hundreds of dollars to repair; luckily, if you have comprehensive insurance, you can file an insurance claim with your provider for damages. Comprehensive coverage provides policyholders with compensation if their vehicles are damaged due to a non-collision event. This includes theft, vandalism, fire, and other damages that are listed in your specific policy. If you don't have comprehensive coverage currently, you may want to consider adding it to your overall insurance portfolio.
Will my insurance cover me for pothole damage?
Hitting a pothole can lead to several vehicle damages. Whether it be to your tires, frame, suspension, or electrical, pothole damage can lead to expensive repair bills, especially if you do not have the right insurance coverage in place. For some insurance companies, pothole damage is considered a non-collision event under comprehensive insurance.
As such, if you have this type of optional coverage, you will be able to file a claim with your insurance provider for compensation. On the other hand, other insurers categorize this type of damage as a single-vehicle collision. In this case, you'd need collision coverage, which is, again, optional in order to be covered by your provider.
What can damage a car engine?
Your car's engine is one of the most important components of your vehicle. When not taken care of correctly, it can lead to several damages and expenses. So, what can damage a car engine? The truth is, there are a lot of things that can. Whether it be not having enough oil in your car, filling your car up with the wrong type of gas, a dirty air filter, excessive heat, driving through water, or revving your engine, the list goes on.
To prevent engine damage, it's essential that you perform routine maintenance on your car throughout the year. That way, you can avoid large repair bills and ensure that you are safe while behind the wheel of your vehicle.
Should I invest in rust-proofing for my vehicle?
Rustproofing is a type of vehicle service you can perform on your car to prevent rust from forming on the body of your car. Rust proofing uses a chemical compound that functions as a barrier between your car's body and exterior elements like water and oxygen, both of which are needed for rust to form. This can be applied to your exterior paint, as well as the under part of your car.
If you live in an area with heavy rain and snowfall throughout the year, investing in rust-proofing for your vehicle makes sense. However, if it only rains a couple of times a year, this service may not be worth the added cost. Ultimately, it really depends on where you live, your budget, and whether you're worried about rust forming on your vehicle over the years.
Is hitting a curb covered by insurance?
Car insurance is designed to protect drivers from numerous types of damage. That being said, not all damage is covered. So, what about hitting a curb? Can you be compensated if your vehicle experienced damage after hitting one? The short answer is yes.
Get high-quality car insurance with BrokerLink
Renewing car insurance can be a confusing process, especially if your driving habits have changed and you're looking for new options that fit your new circumstances.
Luckily, if you're up for an expired car insurance renewal, the experienced brokers from BrokerLink are here to help, no matter how far along you are on your insurance journey.
With numerous locations across the country, BrokerLink is one of Canada's leading and trusted brokerages. If we're in your neighbourhood, don't hesitate to come into one of our offices and work with a broker one-on-one. You can also contact us over the phone to speak with a team member. Alternatively, if you're simply browsing for options, take advantage of our free online quote tool!
Get an auto insurance quote [phone]
