Family Protection: Auto Insurance Coverage Explained

Family Protection Coverage is an optional add-on to your auto insurance policy that provides additional protection for you and your family in the event of an accident involving an underinsured, uninsured, or unidentified driver. This type of coverage is especially useful if you live in a province or state where the minimum required liability coverage is low and may not be sufficient to cover the cost of injuries or damages resulting from an accident. In the event that the at-fault driver's liability coverage is insufficient to compensate for your injuries or damages, Family Protection Coverage allows you to claim the difference from your own insurance company, up to your policy limit. This type of coverage is commonly referred to as OPCF 44R in Ontario, SEF 44 in Alberta, and is also offered in Atlantic Canada, but not in Quebec.

Family protection coverage is an optional extra

This add-on provides extra protection for you and your family in the event of a collision that causes injury or death. This coverage is particularly relevant if the other driver is underinsured, uninsured, or unidentified, as it provides additional liability coverage on top of the at-fault driver's insurance.

For example, if you have $1 million in liability coverage and the at-fault driver only has $200,000, family protection coverage will cover the difference, ensuring you are not left with high bills to pay out of pocket. It is important to note that the amount of family protection coverage you can claim depends on the amount of your third-party liability coverage. In the previous example, if you had $200,000 in family protection coverage, you would not be able to make a claim, as there is no excess.

Family protection coverage is also applicable in scenarios beyond traditional car collisions, such as hit-and-run accidents or incidents involving uninsured drivers. It can even apply if you or your family members are injured as pedestrians or cyclists.

While family protection coverage is optional, it is a valuable addition to your insurance policy, providing peace of mind and ensuring you are not caught off guard by insufficient coverage in the event of an accident.

It covers collisions with underinsured drivers

Family protection coverage is an optional add-on to your auto insurance policy that provides extra protection in the event of a collision with an underinsured or uninsured driver. It is also known as OPCF 44R in Ontario, SEF 44 in Alberta, and is offered in Atlantic Canada, but not in Quebec.

In the event of a collision with an underinsured driver, family protection coverage will cover the difference between the at-fault driver's liability limit and your own. For example, if the other driver has a liability limit of $200,000 and your medical expenses and damages exceed this amount, family protection coverage will kick in to cover the difference up to your policy limit. This can provide much-needed financial protection and peace of mind in the event of an accident.

Who Does It Cover?

Family protection coverage applies not only to the primary driver but also to eligible family members, including financially dependent children under 18 and spouses, even if they don't live under the same roof. In the case of common-law couples, they may also be eligible for coverage. This coverage also extends to situations where you or your family members are not in a car, such as if you are a pedestrian or cyclist injured in a collision with an underinsured driver.

The amount of family protection coverage you need will depend on the province you live in and your individual needs. In Ontario, for example, the minimum third-party liability coverage required is $200,000, but it is recommended to have $1 million or $2 million in coverage. The higher the coverage amount, the more protection you and your family will have in the event of a collision with an underinsured driver.

While adding family protection coverage to your auto insurance policy will result in a slightly higher premium, the extra cost is generally affordable and provides valuable peace of mind. It is important to remember that you cannot control the insurance choices of other drivers, and accidents with underinsured drivers can result in significant financial strain. Family protection coverage helps to ensure that you and your family are adequately protected in the event of a collision, providing coverage for medical expenses, lost income, and other costs associated with the accident.

It covers collisions with uninsured drivers

Family protection coverage is an optional coverage that protects you and your family in the event of a collision with an underinsured, uninsured, or unidentified driver. This type of insurance is especially useful if you get into an accident with a driver who doesn't have enough insurance to cover the costs of any damages or injuries.

In Ontario, Family Protection Coverage is called OPCF 44R, and in Alberta, it's known as SEF 44. This coverage is not offered in Quebec. Regardless of the name, family protection coverage applies in several scenarios, including hit-and-run accidents and collisions involving an uninsured driver.

For example, let's say you're in a car accident with an uninsured driver who is at fault, and the total damages amount to $550,000. The standard uninsured automobile coverage in Ontario would typically only cover up to $200,000. However, if you have Family Protection Coverage added to your auto policy, it would cover the remaining $350,000 in damages. This additional coverage ensures that you are not left with high bills to pay out of pocket.

Family Protection Coverage is relatively affordable and provides peace of mind, knowing that you and your family are protected in the event of an accident with an uninsured driver. It is important to note that this type of coverage has a claim window, such as the two-year claim window for OPCF 44R in Ontario, so be sure to review the details of your specific policy.

It covers collisions with unidentified drivers

Family protection coverage is an optional rider that can be added to your motor vehicle insurance to protect you and eligible family members in the event of a collision that leads to injury or death. This type of coverage is particularly relevant if the motorist at fault is underinsured, uninsured, or even unidentified.

In the case of a collision with an unidentified driver, family protection coverage can provide financial protection for you and your family. This includes medical treatments, recovery from injuries, home care, and loss of income. This type of coverage is especially important if you are not at fault for the accident, as it ensures that you are not left with high bills to pay out of pocket.

For example, let's say you are involved in a hit-and-run accident where the other driver flees the scene without providing their information. Family protection coverage can help cover the costs of any injuries or damages incurred during the accident. This coverage is applicable even if you are not behind the wheel, such as if you or a family member are a passenger, pedestrian, or cyclist injured in a collision with an unidentified driver.

In Ontario, Family Protection Coverage is known as OPCF 44R, while in Alberta, it is called SEF 44. This coverage is not available in the province of Quebec. It is important to note that family protection coverage has a time limit for filing a claim, which is typically two years from the date of the accident.

By having family protection coverage, you can have peace of mind knowing that you and your family are financially protected in the event of a collision with an unidentified driver.

It covers medical expenses and lost income

Family protection coverage is an optional add-on to your auto insurance policy that provides extra protection for you and your family in the event of an accident with an underinsured, uninsured, or unidentified driver. It is also known as OPCF 44R in Ontario, SEF 44 in Alberta, and is offered in Atlantic Canada (but not in Quebec).

This type of coverage is especially useful if you are in an accident with a driver who has insufficient insurance to cover your medical expenses and lost income. For example, if the at-fault driver has $200,000 in liability coverage, you will only receive up to that amount to cover your medical bills and lost wages, which may not be enough. However, if you have family protection coverage and a higher limit of liability, you can claim the difference between the at-fault driver's limit and your own. So, if your limit is set to $2 million, you can claim up to that higher amount.

Family protection coverage also applies if you or your family members are pedestrians or cyclists injured in a collision with a motor vehicle. It can help cover the costs of recovery from your injuries, home care, or lost income. It also covers eligible family members, including financially dependent children under 18 and spouses, even if they don't live under the same roof.

In addition to medical expenses and lost income, family protection coverage can provide peace of mind by covering other costs associated with accidents, such as funeral expenses. While health insurance may cover some medical expenses, it typically won't cover lost income or expenses for other passengers in the vehicle who are not on your healthcare plan. By adding family protection coverage to your auto insurance policy, you can ensure that you and your family are adequately protected in the event of an accident.

Frequently asked questions