Insurance Guide: picking up riders

Your regular policy may cover you if you are driving a vehicle, similar to the one you own, in Canada or the U.S.


Read the fine print to see if you’re covered

Automotive insurance is legislated by provinces, so minimum coverage requirements for collision and liability along with other aspects of insurance will vary from province to province.

Companies, as long as they stay within the regulations established by the province can offer insurance coverage for a vehicle, at any price the company wants to charge, within reason.

It is up to you to decide which company you want to deal with based on what your insurance needs are and the price you are comfortable paying.

You can even insure race cars and the usual premium is usually a minimum of 10% of the declared value of the car per race. Since most of us do not race, we would be more interested in coverage for the special situations in which we may find ourselves. Often you need to ask about this aspect of your insurance because it is an addition or option to a standard policy. As an addition to a regular policy, this extra coverage is normally referred to as a “Rider”.

Riders can be for things such as decreasing (or increasing) your deductible limits for collision, glass replacement and liability coverage. Increasing liability limits to well above the minimum most policies provide is a good idea, particularly if you travel into the USA.

Riders can also be purchased to cover situations such as using your personal vehicle for business use. Another rider that can be very useful is non-owned vehicle use coverage, which means that your regular policy will cover you if you are driving a vehicle, similar to the one you own, in Canada or the U.S.

Before purchasing these riders, read the fine print. All riders have terms and conditions that must be met to be in effect if an accident that results in a claim occurs.


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