Policy Wording

Imagine this: you’re driving at night, and headlights appear in the oncoming lane. You swerve to avoid a crash, but your car ends up rolling over. No one else is involved, but you’re injured. Here’s the twist: your insurance policy might not cover this, even though you were trying to be safe.

A recent Alberta court case highlights the importance of clear language in auto insurance policies. Mr. Funk swerved to avoid a collision but had no coverage because his policy required physical contact with the other vehicle.

The Policy Wording Wins (Alberta Court)

The Court of Appeal sided with the insurance company, Wawanesa. The policy clearly defined an “unidentified automobile” as one that makes physical contact with the insured’s vehicle. The court rejected arguments that this requirement was unreasonable or against public policy. They argued clear and consistent policy wording benefits both insurers and insured parties by ensuring everyone understands what’s covered.

But There’s a Twist…

One judge dissented, arguing the policy wording was ambiguous. They believed Mr. Funk had a reasonable expectation of coverage since he reacted to avoid a collision. The judge felt the policy could be interpreted more broadly based on the “physical evidence” needed to prove the unidentified car’s involvement. This case is now seeking leave to appeal to the Supreme Court of Canada, so the final word is not yet written.

What This Means for You:

• Read your auto insurance policy carefully, especially sections on unidentified drivers.
• Don’t assume coverage based on what seems reasonable – it all comes down to the specific policy wording.
• If you’re unsure about coverage, consult an insurance professional for clarification.

This case is a reminder that clear communication is key in insurance. By understanding your policy, you can avoid unexpected coverage gaps and ensure you have the protection you need when you need it most.tunesharemore_vert

Imagine a scary scenario: you’re driving at night, headlights appear oncoming, and you swerve to avoid a crash. Unfortunately, your car rolls over. Thankfully, there’s no other car involved, but you’re injured. Now, here’s a shocker: your auto insurance might not cover this, even though you acted safely.

A recent Alberta court case sheds light on the importance of clear wording in auto insurance policies. Mr. Funk swerved to avoid a collision but was denied coverage because his policy required physical contact with the other vehicle.

Clear Policy Wording Wins (For Now):

The Alberta Court of Appeal sided with the insurance company, Wawanesa. The policy clearly defined an “unidentified automobile” as one that makes physical contact with the insured’s vehicle. The court prioritized clear and consistent policy wording, arguing it benefits both insurers and insured parties by ensuring everyone understands what’s covered. This approach promotes transparency and avoids confusion.

But Wait, There’s More:

One judge disagreed, arguing the policy wording was ambiguous. They believed Mr. Funk had a reasonable expectation of coverage for his defensive maneuver. This judge felt the policy could be interpreted more broadly based on the need for “physical evidence” to prove the unidentified car’s involvement. The case is now seeking leave to appeal to the Supreme Court of Canada, so the final verdict is yet to come.

Key Takeaways for Drivers:

• Read Your Policy Carefully: Don’t just skim your auto insurance policy. Pay close attention to sections on unidentified drivers and understand the specific requirements for coverage.
• Clarity is Key: Don’t assume coverage based on what seems fair. It all boils down to the exact wording in your policy.
• Seek Help if Unsure: If you’re unsure about coverage scenarios, consult an insurance professional for clarification. Don’t be afraid to ask questions!