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Car insurance lexicon

Accident – Any event resulting in damages, including everything from broken windshields to collisions.

All-risks coverage – Coverage against any type of damages caused to your vehicle.

Civil Liability – Obligation of one party to indemnify another party for damages incurred as a result of a road accident, through either an intentional act or negligence.

Claims history – Your file that contains data on all the past claims in which you have been implicated during the past six years (accident, broken windshield, theft, etc.)

Collision and/or comprehensive coverage – Protection against damage incurred by your vehicle when you are responsible for the accident or when the accident does not involve any other vehicle. This coverage also protects you against damages incurred during a hit-and-run.

Deductible – The amount you must pay for yourself in the event of a claim. A $250 collision deductible, for example, signifies that in the event of an accident for which you are deemed responsible, you must cover the first $250 of repair costs, with your insurer covering the rest.

Depreciation – The decline in value of a vehicle based on its age as well as the wear and tear it undergoes.

Endorsement – Addition to a contract that modifies the coverage and protections that it offers. Examples include replacement value (endorsement 43) and coverage for borrowed or short-term rental cars (endorsement 27).

No-fault insurance – An insurance system under which insured motorists are indemnified for losses by their own insurance company, regardless of who is declared responsible for the accident.

Premium – The amount you must pay to your insurer as part of your insurance contract.

Property damage – Physical damage to a vehicle, including the loss of use of the vehicle.

Responsibility – Your level of responsibility in the event of a road accident is determined using clearly defined barometers. These barometers vary from one province to another.

Special conditions – The part of the contract that identifies the insured person(s), the insured vehicle(s), the length of the contract, protections included and the amounts of the deductibles.