top of page
Search

What is the Difference Between Named or Specified Perils and All Perils Insurance Coverage?

Updated: Nov 7, 2023


Blue truck

If you are looking to purchase a new auto insurance policy or renew an existing one, you might be wondering what kind of insurance coverage you need. Aside from the mandatory liability coverages in Alberta, there are some optional insurance coverages: all perils, collision, comprehensive and named perils. You can read more about collision insurance and comprehensive insurance in our blog posts.


What Is Named Perils Insurance Coverage In Alberta?

Named perils coverage protects your vehicle from hazards that are listed in your insurance policy. It is the least amount of coverage you can purchase for the lowest premium. If your vehicle is damaged by a peril that is not listed in the policy, it will not be covered.


What Are Named Perils?

  • Fire

  • Lightening

  • Explosion

  • Stranding, sinking, burning, derailment or collision of any conveyance in or upon which the automobile is being transported on land or water

  • Theft or attempted theft

  • Earthquake

  • Riot or civil commotion

  • Windstorm

  • Hail

  • Falling or forced landing of aircraft or of parts thereof

  • Rising water


What Is All Perils Insurance Coverage In Alberta?

All perils coverage is also sometimes called “all risk” and it combines collision and comprehensive insurance into one policy with one deductible. It is the most extensive insurance policy that you can purchase, and thereof the most expensive. All perils insurance protects your vehicle from all of the perils that are listed in the named perils, as well as damage due to collision or upset. Basically, all perils insurance covers everything except for the exclusions that are listed in your policy.


What Is Excluded With An All Perils Insurance Policy?

Common exclusions include:

  • Radioactive material, directly or indirectly

  • Nuclear disasters

  • War and terrorism

  • Tsunamis, earthquakes and floods are sometimes excluded


What Type Of Coverage Is Right For Me?

A few things to keep in mind when deciding how much coverage to purchase: your budget, the value of your car, and the amount of savings you have to cover the cost of damage or replace your vehicle. For example, if you have an older car, it might not be worth purchasing full coverage to replace your vehicle. The premiums may exceed the value of your vehicle over the course of a couple years. On the other hand, if you have a car that you really love, it might be a smart idea to purchase all perils insurance to ensure that your vehicle will be replaced, regardless of what happens to it.


Insurance policies are not one-size-fits-all, and that’s why we always recommend speaking with an experienced broker who can offer you the guidance and expertise that you deserve.


If you have any questions about the insurance coverages that are available in Alberta, please don’t hesitate to reach out. We would love to assist you!

4 views

Recent Posts

See All
bottom of page