Glossary of Terms

 

 

 

Allstate wants to help you understand your insurance coverage so we’ve provided this list of simplified insurance terms


General Terms


Automobile Insurance
(often referred to as auto or car insurance)*
Provides compensation for injury or damage that results from owning or operating a vehicle.


At-fault
You are deemed responsible for a collision.


Not at fault
According to the standard fault determination rules used by the insurance industry, you
are not deemed responsible for a collision.


Claim
A policyholder’s request for payment from his/her insurance company for financial losses that are covered under their insurance policy.


Coverage
The protection and benefits that an insurance policy provides.


Deductible
The amount of money that you pay before your insurance policy pays for a claim. For example, if the cost to repair your car after a collision is $2000, and you have a $500 collision deductible, then you will pay the first $500 and your insurance company will pay $1,500.


Discount
A reduction in a policy’s premium due to various items such as loyalty, safe driving, being claims-free or installing special equipment that may reduce the chance of loss such as a car being equipped with an anti-theft device.


Endorsement
A change to your policy which either increases or reduces the amount of coverage.  At Allstate, examples of auto endorsements include loss of use and transfer of protection to rental vehicles.


Estimate (also referred to as a quote)
An estimated cost of the premium that will be charged for insurance coverage based on the information provided by the person who requests the quote. An estimate is subject to change upon verification of the information prior to acceptance of the premium/contract.


Primary driver
The person who drives the vehicle the most often. If you obtain a quote for more than one driver and more than one vehicle, each vehicle must have one primary driver.


Occasional driver
A person who drives a vehicle from time to time, but not as frequently as the primary driver.


Quote (also referred to as an estimate)*
An estimated cost of the premium that will be charged for insurance coverage based on the information provided by the person who requests the quote. A quote is subject to change upon verification of the information prior to acceptance of the premium/contract.


Discounts


(unless indicated, discounts are available in all provinces in which Allstate Canada operates.)


Anti-Theft Device (available in Quebec only)

Devices designed to reduce the chance of a vehicle being stolen or assist in its recovery. Some examples of anti-theft devices that may qualify for a discount:

  • Engine disabling device - a professionally installed device that prevents the engine from starting without the use of a special key or a hidden button/switch.
  • Marking – vehicle is engraved in approximately 50 places for easier identification.
  • Tracking device - allows the vehicle to be followed by law enforcement if it is stolen.


Driver Training
A discount for drivers who have taken an approved driver training course. .


Group Discount
Preferred group rates on insurance offered to a group of persons who belong  to a company or association. Allstate’s discount is  The Good Hands Group Insurance® program.

Multi-Vehicle
A discount offered to drivers who have more than one vehicle insured on the same policy.


“Take Two” Advantage® (also referred to as multi-line)
A discount offered for insuring your home and car with the same company. Certain conditions apply.


Coverage Descriptions


Liability
Liability insurance protects you if you are in an accident and you’re held legally liable for injury or death to other people. It also covers damage to their vehicle or property. In Quebec, this coverage is available to drivers who are deemed not at fault for the accident.


Property Damage
Pays for damage you cause to other people’s property as a result of an automobile accident. In Quebec, this coverage is available when you are deemed at-fault for the accident.


Direct Compensation
In Ontario, Nova Scotia and New Brunswick this coverage pays for repairs to your vehicle in accidents that are deemed not your fault.


Accident Benefits
(all provinces, except Quebec) Covers medical expenses e.g. medical treatment, rehabilitation, funeral, death, loss of income.  In Ontario, Standard Accident Benefits refers to the standard limits that are automatically offered for income replacement, medical and rehabilitation, attendant care, caregiver, and death and funeral coverages. Consumers have an option to increase these limits.


Collision
Covers the cost of repair or the replacement of your vehicle (up to its actual value less your deductible) if you have a collision with another car or an object (e.g. tree, guardrail, or pothole).


Comprehensive
Covers physical damage to your car (not resulting from a collision) caused by theft, vandalism, fire, falling objects, lightning, explosion and chipped windshields.


Uninsured Motorist
Pays for bodily injury or property damage caused by the owner or operator of an uninsured automobile. In some parts of the country this is referred to as “Section D.”


Endorsements

* unless indicated, endorsements  are available in all provinces in which Allstate Canada operates


Accident Benefits (QEF34 – Quebec only)
Covers medical expenses e.g. medical treatment, rehabilitation, funeral, death, loss of income. In Quebec, this endorsement covers fees that are not paid by the SAAQ.


Claims Forgiveness (CF)
This endorsement protects your rates from going up after you make your first claim if insured
submits no more than one claim every five years (home insurance); six years (auto insurance).


Disappearing Deductible
Provides an automatic $100 reduction of your deductible at renewal (to a minimum of $0) every year you are claims-free at Allstate. This option is available for all motor vehicles used for personal purposes that have all-perils, collision, comprehensive or specified perils deductibles applied to the policy.


Limited Glass Endorsement (also referred to as glass coverage)* (NBEF 13C , OPCF13C, QEF 13C, SEF 13D)
This endorsement removes coverage for glass damage from the policy, unless it is specifically caused by a hazard outlined by Specified Perils.


Specified Perils covers certain perils such as the following:

  • Fire and lightning
  • Theft or attempted theft
  • Windstorm, earthquake or hail
  • Explosion, riot or civil commotion
  • Falling or forced landing of aircraft or parts of the aircraft
  • Check Allstate’s policy wording for full details.


Loss of Use (NBEF 20, OPCF 20, QEF 20, SEF 20)
This endorsement reimburses you for alternative transportation (e.g. rental) if your vehicle is being repaired as a result of damage or theft. If you don’t rent a replacement car, it will pay for taxis and public transportation costs


Liability for Damage to Non-Owned Automobile (ASEF 27, OPCF 27, QEF 27, SEF 27)
This endorsement covers you if you damage a car you don’t own such as a rental vehicle.


* Also referred to as Transfer Protection to Rental Vehicle.


Waiver of Depreciation (ASEF 43, NBEF 43R, OPCF 43, QEF 43, SEF 43R)
No depreciation will be applied if your new car (less than 36-months-old) is damaged in an accident.  If you experience loss or damage (including a total loss) of your vehicle, you will receive a loss settlement up to the original purchase price.


Family Protection Coverage (NBEF 44, OPCF 44, SEF 44)
Provides additional benefits to the insured and certain dependent relatives who have a claim against another motorist for injuries or death, if the other motorist has insufficient insurance to pay the claim. The maximum payable under this coverage is the difference between the liability insurance limit of the insured’s policy and that carried by the motorist at fault.  This endorsement is available in Alberta, Ontario, New Brunswick and Nova Scotia. 


General Terms


Claim
A policyholder’s request for payment from his/her insurance company for financial losses that are covered under their insurance policy.


Condo Insurance
Provides coverage for your condo unit and your contents for a broad range of risks. The condominium corporation will have insurance for the building, but its insurance will not apply to much of your unit, your personal belongings or your legal liability to others. 

Coverage
The protection and benefits that an insurance policy provides.


Deductible
The amount of money that you pay before your insurance policy pays for a claim. For example, if the cost to replace possessions stolen during a break-in is $3,000, and you have a $1,000 deductible, then you will pay the first $1,000 and your insurance company will pay $2,000.


Discount
A reduction in a policy’s premium due to various items such as being claims-free or combining your property and auto insurance with Allstate.


Endorsement
A change to your policy which either increases or reduces the amount of coverage.  For example, personal articles coverage (e.g. jewellery), home business coverage, property in a storage facility or sewer back-up (not available in all locations).  


Estimate (also referred to as a quote)
An estimated cost of the premium that will be charged for insurance coverage based on the information provided by the person who requests the quote. An estimate is subject to change upon verification of the information prior to acceptance of the premium/contract.


Homeowner Insurance
Homeowner insurance provides coverage for single dwelling homes covering your property, contents, personal belongings and legal liability to others.


Property Insurance
(often referred to as homeowner, condo or tenant insurance)
There are three types of policies, homeowner, condo and tenant which provide insurance coverage for the risk of owning or renting your home.


Quote
(also referred to as an estimate)
An estimated cost of the premium that will be charged for insurance coverage based on the information provided by the person who requests the quote. A quote is subject to change upon verification of the information prior to acceptance of the premium/contract.


Tenant Insurance
Tenant insurance covers you against property and bodily injury lawsuits as well as covers your personal property for a broad range of risks.



Coverages


Personal Property
The personal property limit is the amount of insurance coverage provided to replace the contents of your home (e.g. furniture, clothing, electronic equipment).


Additional Living Expenses
This coverage provides additional living expenses, over and above the normal cost of living, in the event of an insured loss.


Family Liability
This coverage insures you if you become legally liable to pay compensation to someone as a result of bodily injury or property damage.


Identity Theft and Legal Expense Coverage (Condo Policy)
Covers expenses associated with identity theft or covered disputes and offers a toll-free assistance hotline for legal questions.


Discounts


Group Discount
Preferred group rates on insurance offered to a group of persons who belong to a company or association. Allstate’s discount is The Good Hands Group Insurance® program.


Mature/Retired Customers
 
Special discounts based on your age.


Security Systems
Discounts for homes with monitored security systems or fire alarms.


Take Two Advantage® (also referred to as multi-line)
A discount offered for insuring your home and car with the same company. Certain conditions apply.

 

 

Application of the above insurance terms are subject to the eligibility requirements and terms and conditions of the insurance company.