Frequently Asked Insurance Questions
Millennium Insurance Corporation has compiled some of the most frequently asked insurance questions our clients pose to us. Read below for more information or give us a call to speak to a member of our team in person!
You must request a “Release of Interest” letter from your lien holder and send our office a copy of this release. Upon receipt of the copy of release, we will remove the lien holder.
If you request cancellation of your automobile policy at any time other than at policy expiry, the earned/return premiums are calculated using the Short Rate Return Premium Calculation Table, as set out in the Statutory Conditions of the Alberta Standard Automobile Policy, SPF No. 1. “Termination 8.(3) Where this contract is terminated by the insured the insurer shall refund as soon as practicable the excess of premium actually paid by the insured over the short rate premium for the expired time, but in no event, shall the short rate premium for the expired time be deemed to be less than any minimum retained premium specified.”
Because your insurance is a legal contract, we require a Cancellation Request signed by the named insured(s). Signatures of all named insureds are required to prevent a policy being cancelled by one named insured without the knowledge or consent of the remaining named insured(s).
Your rate is based on your driving record. Driving records go from 0 to 6, based on how many years you have been free from an at-fault accident. If you have an at-fault accident, that accident affects your driving record, which then affects your rate. At-fault accidents can affect your driving record for up to 6 years, which would affect your rate for up to 6 years. Please note, we offer a SEF 39 Accident Waiver endorsement, which you may qualify to purchase.
Different accidents can affect your rates differently, depending on your current rate. An at-fault accident can affect your rates for up to 6 years.
If your vehicle is an antique, you will need to obtain an appraisal of the vehicle from a certified appraisal facility. The appraisal must be submitted to our office. If deemed satisfactory, we can add the SEF 19a (Valued Automobiles Endorsement). This endorsement provides physical damage coverage for the value stated on the appraisal. The appraisal is considered valid for a full 3 years, at which time you must again provide our office with a current appraisal to maintain the Valued Automobiles Endorsement. If you chose not to obtain a new appraisal, the SEF 19a will be replaced by the SEF 19 (Limitation of Amount Endorsement), which limits the maximum payout for the vehicle to the previous value but does NOT guarantee payment of the declared amount.
To protect yourself from the financial hardship caused by loss of or damage to your vehicle. Even though you may consider yourself a safe driver, no one leaves home planning on being in an accident. It only takes a moment’s inattentiveness or bad road conditions for something to happen. Even if an accident is not your fault, you may end up paying for the damages to your vehicle; your vehicle is hit by an unknown party while parked, or your vehicle is hit by someone who doesn’t carry insurance or flees the scene, leaving you to foot the bill. Carrying collision and comprehensive coverages helps to protect your financial interest in the vehicle.
Note: Collision and Comprehensive coverages are optional. However, if your vehicle is leased or has a lien on it, your lessor or lender may require you carry these coverages, and they may even have specific deductible requirements. Please check your leasing or lending agreement.
Rental vehicle coverage, SEF 27 Legal Liability for Damage to Non-Owned Automobile, is an endorsement which, when added to your policy, covers your legal liability (responsibility) for loss of or damage to a rented vehicle arising from collision and/or comprehensive or specified perils. Coverage is limited to specified amounts, and coverage is only available in Canada and the United States.
SEF 20 Loss of Use endorsement, when added to your policy, will pay for the rental of an automobile or the use of taxi cabs and public means of transportation when your vehicle is not drivable as a result of a collision or comprehensive claim that is covered by your policy.
A grid step is a level that is applied to the base rate premium set by the government to obtain an insurance premium. A grid step is determined based on the number of years a driver has been licensed, combined with that driver’s driving experience.
Based on regulations, vehicle inspection reports must be provided to the insurer in order to provide proof that the vehicle is mechanically roadworthy. Based on Section 1(2) of the Regulations, failure to provide the requested vehicle inspection report allows for adverse contractual actions (refusal to insure, non-renew and cancellation of a private passenger motor vehicle insurance policy).
All vehicles must be registered and insured in the same province. For information regarding Residency Requirements for Registration, visit Service Alberta.
Contact your prior insurance carriers to obtain Insurance Experience letters (Letter of Insurance History). Compile as much history as possible for all drivers of the vehicle; we must have at least the past 6 consecutive years of history to provide you with the best premium.
Contact a Registry Office in your prior province(s) to obtain a 3-year driver’s abstract.
Obtain your Alberta driver’s license.
Contact our office to arrange insurance coverage.
If you are bringing your vehicle with you from another province, you will be required by the Registry Office to have an Out-of-Province Inspection Form completed in order to register the vehicle in Alberta (the inspection form is available at any Alberta Vehicle Registry Office, along with a list of approved inspection locations). NOTE: A completed inspection form is only valid for 14 days from the date the inspection form was completed.
If your vehicle is not from out of province but is 12 years old or older, you will be required to have a Mechanical Inspection Report completed by a certified mechanic.
We will require proof of ownership, your Alberta (or other valid) driver’s license number, your Letters of Insurance History, and an out-of-province 3-year driver’s abstract to complete the Application for Insurance.
You have a maximum of 90 days from the day you move to Alberta to exchange your driver’s license for an Alberta driver’s license and register your vehicle in this province. For information regarding obtaining an Alberta driver’s license, visit Service Alberta.
For information regarding exchanging a non-Alberta driver’s license, visit Service Alberta.
Newly licensed drivers who complete an approved Driver’s Education Course (consisting of a minimum of 15 hours of classroom instruction and 10 hours of behind-the-wheel training) from a government-approved driving school, and who can provide a copy of a Driver’s Training Certificate, are granted the equivalent of 2 years’ driving experience under the Provincial rating system and the equivalent of 3 years’ driving experience under our rating system. This driving record is maintained as long as you continue to drive accident- and criminal code conviction-free.
No, any driver with a Class 7 license does not need to be added to your policy. However, we still require the Class 7 driver’s information (full name and date of birth) and license number.
No, if you lend your vehicle out, you are responsible for any accidents that occur while your vehicle is loaned out.
You can lend your vehicle to someone who has a valid driver’s license without adding them to the policy. Be aware that if the person borrowing your vehicle has an accident while driving your vehicle, your insurance record can be affected for the next 6 years, and any accident may impact your discounts. When you lend your vehicle, you are also lending your insurance.
For first year policies, payment options are: payment in full and monthly payments (if you qualify for monthly payments, we require 20% down. The balance will be paid over 10 months; second and later years are payable over 12 months).
In the first year, a 20% down payment was applied to the premium, which reduced your monthly payments. In the second and later years, the 20% down payment is not required.
A deductible is the portion of the loss for which you are responsible. The higher the deductible (and hence the more you are responsible for), the lower the premium is for that coverage.
The major function of insurance is to restore your property and possessions or business to the point it was before the loss occurred. Insurance is all about managing risk and providing financial compensation in the event of a loss.
Generally, the risks people face fall into the following categories:
- Personal risk – people are their own greatest asset. Financial loss will almost always accompany the loss of one’s health or life.
- Property risk – a financial loss when owned property is destroyed or damaged.
- Liability risk – when a person’s action results in injury or damage to others, the law generally provides that they be held financially responsible.