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you're covered istock w i n t e r 2 0 1 4 | g o i n g p l a c e s 57 PAI Pointers Why purchasing personal accident insurance makes sense by Lea Currie W ith so many insurance options out there, it can be overwhelming to figure out what you need, what suits your lifestyle and wallet or even which coverage options you don't require. To shed light on one of the many insurance products available, I sat down with Erin Krahn, mem- ber services counsellor at CAA Manitoba, to learn more about personal accident insurance (PAI). Read on to find out why this is an easy and affordable insurance all members should snap up. LC: What is personal accident insurance? EK: Personal accident insurance is a form of insurance that will cover you in the event of loss of life, dismemberment or loss of sight if you're in an accident with a private passenger vehicle, taxi, bus, train, aircraft, boat, subway or farm implement. e coverage protects you whether you're travelling in the vehicle or are hit by it. It's important to know that PAI pro- tection does not extend to some modes of transportation that come with a higher risk, such as snowmobiles, motorcycles, mopeds, scooters or go-karts. PAI is very popular for snowbirds driving down to the southern U.S. for several months or anybody who travels. But it's also an afford- able insurance option for the younger crowd too. We're not invincible! I bought the cover- age when I was in my 20s. LC: Why should people have PAI coverage? EK: It's not something you want to think about because it has to do with death, but you should be prepared for the worst-case scenario. It can be scary to think about, but I personally have it because what if I get into a car accident and I die? at would leave my parents respon- sible for my final expenses. At least with the PAI coverage, they would have protection for such things as my funeral costs. For members who don't have any insurance or wish to sup- plement their current coverage, PAI is a great option. It's easy to get and very affordable. LC: How much does it cost? EK: Members are pleasantly surprised when I tell them the price because it's such a great value – it starts as low as $9 a year for $15,000 in coverage. PAI is connected to your CAA membership, so the costs are added to your annual dues. If you're on the monthly payment plan, the premium also gets divided up over the 10-month period. Even if you buy the high- est level of coverage ($50 a year for $100,000), that's only $5 a month. Plus, you're not locked in, so when you renew your membership, you can increase, decrease or cancel your plan. LC: What makes PAI different from life insurance? EK: If you have both PAI and life insurance and you die in a motor vehicle collision, for example, your beneficiaries would receive the benefits of both insurances. Where the two differ though is that PAI will also pay out for dismemberment and loss of sight. If you only had life insurance and you lost a foot or a hand in an accident, you may not receive any financial compensation. Considering that most people are injured in an accident, per- sonal accident insurance is a great way to pro- tect yourself from financial hardship. LC: How does it compare to other types of insurance? EK: PAI doesn't just cover you within Manitoba – it protects you wherever you are, so it's a great supplement to travel insurance. PAI will pay you if you're dismembered or your beneficiary should you die in an accident while travelling. When I was planning a trip to Europe, I knew I'd be taking a ferry, the subway, a bus – for me, PAI was a huge reassurance. I knew that if anything happened, my family wouldn't be left with the full burden of my final expenses. LC: Who can buy PAI? EK: It's exclusive to CAA members. ere are no restrictions – anybody, no matter what their age or medical history, qualifies for personal accident insurance. With your CAA member- ship, you can buy up to $100,000 in coverage. Starting at $9 a year, who can refuse? GP Associate members can also purchase personal accident insurance from CAA. Call 204-262-6100 or 1-800-222-4357 to add this protection to your membership today.