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The All-Comers Rule and Alberta Auto Insurance

What is the all-comers rule?

The all-comers rule means that in Alberta no one can be denied car insurance. In 2003, the Insurance Act instituted this clause that has come to be known as the “all-comers rule.” Now this is not to say that there aren’t extenuating circumstances under which someone may be denied insurance coverage. In order to give you a better understanding of this here’s a quick introduction on Alberta car insurance.

What exactly is basic coverage?

The Insurance Act maintains that everyone in Alberta must be given basic coverage. So what is basic coverage? It is third party liability and accident benefits. If you’re involved in an accident which injures someone else or damages someone’s property you will be covered for third party liability. As far as accident benefits regardless of who is at fault you a passenger or even a pedestrian will be covered should there be a medical issue or even death.

Why might I be denied this basic coverage?

While the rule states that all who seek car insurance must receive it and that you are required to have and are lawfully entitled to this type of auto insurance coverage there are one or two instances where an applicant can be denied basic coverage. One if you do not pay for the policy then you will have your policy cancelled. Also if there is an outstanding balance that you have with your insurance company or a previous insurer your current or a new insurance company can turn down your request to write a new car insurance policy. Two if you lie about who will be driving the vehicle the insurer can cancel the policy.  If an insurer does decline to give you basic coverage they must clearly state why and it must be in line with current legislation. You can find more reasons why you might be denied coverage or have your policy voided here.

Because of the All-Comers rule nearly everyone in Alberta is entitled to basic insurance coverages. If you would like to find out more about this legislation or about why an insurer may have turned your request down we strongly suggest you talk to an insurance broker.