Vehicle Protection Products

Vehicle protection products address specific risks and help manage the cost of unforeseen events related to vehicle ownership.  These products are optional and usually offered at the time of purchase to protect components of the vehicle.  Some vehicle protection products sold are considered property insurance, three products are considered auto insurance – manufacturer tire and rim warranties, glass protection and anti theft products.

There are three vehicle protection products considered auto insurance, they are:

1. Non-manufacturer tire and rim warranties providing for tire and rim replacement (excludes warranties provided by the motor vehicle manufacturer for tires and rims included in the vehicle’s assembly),
2. Glass protection products promising to pay for some or all the cost of a windshield replacement, and
3. Anti-theft products including a promise to make a payment in the event of the theft and/or non-recovery of the motor vehicle (or part thereof); includes theft-deterrent etching or tagging and catalytic converter anti-theft devices including a promise to pay if the product fails.

The Insurance Act permits a restricted insurance agent’s certificate of authority and authorizes the holder and their employees to act as an insurance agent for specific classes or types of insurance specified by the Minister. Businesses, like automobile dealerships who intend to sell restricted insurance types must hold a restricted license authorizing only the specified type of insurance. 

Restricted Insurance Agent – a business selling vehicle protection products must hold a restricted license authorizing the business, through its employees, to transact that type of insurance – including but not limited to automobile dealerships, sales finance companies, vehicle rental agencies, etc.

Some vehicle protection products, like stand alone auto glass coverage may be available for purchase through the broker and agent your purchase your auto insurance from, or for purchase at time of vehicle purchase.  Talk to your insurance representative to make sure you have the coverage right for your needs.  Other vehicle protection products may only be available at time of purchase through a restricted Insurance agent who is authorized to sell these products.  

In late 2024 three ancillary vehicle protection products were added as restricted insurance types under the automobile class of insurance.   If you are purchasing any of the three products below, they must be sold by a person holding a restricted insurance agent certificate of authority, and be underwritten by an insurance company licensed to transact auto insurance in Alberta.