Article Summary
If an underinsured driver injures you in Alberta, you first claim against that driver’s liability insurance. If your losses are higher than their policy limit, your own SEF 44 Family Protection Endorsement can cover the gap, up to your own limit. SEF 44 is optional, so check your policy to confirm you have it. Do not sign a release with the other insurer until a lawyer reviews your coverage.
Getting hit by a careless driver is stressful enough. Then you learn their insurance will not cover your injuries, and the bills keep coming. You still have options.
This guide explains how a claim involving an underinsured driver works, what your own policy may pay, and which steps protect you.
At MNH our car accident lawyers help injured Albertans find every source of coverage for our clients in their car accident claims. Contact us today at 1-888-664-5298 to schedule a free consultation and discuss your case.
What Is an Underinsured Driver in Alberta?
An underinsured driver has insurance, but not enough to pay for the harm they caused. Alberta requires at least $200,000 in third-party liability coverage. A serious injury can cost far more than that once you add lost income and future care.
This is different from a driver with no insurance at all. Claims against uninsured or hit-and-run drivers follow a separate path. See our page on uninsured drivers and Alberta’s MVAC program.
How Does SEF 44 in Alberta Cover an Underinsured Driver Claim?
SEF 44 is the Family Protection Endorsement. It is an optional add-on to the Alberta standard automobile policy. Many Alberta drivers carry it, but not everyone does. Your insurance certificate or your broker can confirm.
The coverage fills the gap between the at-fault driver’s limit and your own SEF 44 limit. Your SEF 44 limit usually matches your own third party liability limit.
Here is an example:
- Your losses total $600,000
- The at-fault driver’s policy limit is $200,000
- Your SEF 44 limit is $1,000,000
- The other insurer pays $200,000, and your SEF 44 coverage can pay up to the remaining $400,000
The SEF 44 Family Protection Endorsement explicitly covers you (the named insured), your spouse or adult interdependent partner, and dependent relatives.
You can read the wording in the Alberta government’s SEF 44 form.
Not sure whether your policy includes SEF 44? Our Edmonton car accident lawyers can review it with you in a free consultation.
What Does SEF 44 Not Cover?
SEF 44 has limits you should know before you count on it:
- It pays only up to your own SEF 44 limit, minus the other driver’s coverage
- It covers compensation for your losses, not punitive or aggravated damages
- It applies only if the other driver is legally at fault for your injuries
- Your own insurer can dispute fault and the value of your claim
That last point surprises people.
In a SEF 44 claim, your own insurance company sits across the table from you. Remember that adjusters do not work for you, even at your own insurer.
If you do not have SEF 44, you can still sue the at-fault driver personally. Collecting from a person with few assets is often hard, so ask a lawyer to weigh that option.
What Steps Should You Take After a Crash With an Underinsured Driver?
Report the Crash
Call the police and get the collision report number.
Get Treatment
See a doctor and follow the plan. Your Section B accident benefits help pay for treatment.
Check Your Policy
Look for SEF 44 and note your limit.
Notify Your Own Insurer Early
Give written notice that you may make a SEF 44 claim.
Claim Against the At-Fault Driver First
Our guide explains how to get paid after a car accident.
Do Not Sign a Release too Soon
Settling with the other insurer without advice can put your SEF 44 rights at risk.
Settle or Sue
Most claims settle. If the offer is unfair, read whether suing is worth it.
How Does Alberta Law Apply to an Underinsured Driver Claim?
The Endorsement
SEF 44 is a standard form approved under Alberta’s Insurance Act, RSA 2000, c I-3. Its wording controls what your insurer must pay.
Deadlines
The Limitations Act, RSA 2000, c L-12, generally gives you two years to sue the at-fault driver. SEF 44 also contains its own 12-month clause, and Alberta courts have interpreted it in different ways. Act early to stay safe.
The Minor Injury Cap
The Minor Injury Regulation caps pain and suffering for some soft-tissue injuries at $6,306 for 2026 collisions.
The 2027 Change
Alberta’s Care-First auto insurance system is scheduled to start on January 1, 2027. It will change how injury claims work for collisions on or after that date.
Frequently Asked Questions
What is the difference between an uninsured and an underinsured driver?
An uninsured driver has no valid insurance. An underinsured driver has insurance, but the limit is too low to cover your losses. Different coverage applies to each situation.
Will a SEF 44 claim raise my insurance rates?
You did not cause the crash, so a SEF 44 claim should not count as an at-fault claim. Ask your broker or lawyer how your insurer treats it.
What if the at-fault driver’s insurer denies fault?
Your lawyer gathers the police report, witness statements, and photos to prove fault. That question must be settled before your own insurer pays under SEF 44.
Contact Our Alberta Injury Lawyers at MNH Injury Lawyers Today
A crash with an underinsured driver should not leave you paying for someone else’s mistake. At MNH Injury Lawyers, we have years of experience helping Albertans hurt by drivers with too little insurance. Our priority is finding every source of coverage and protecting your rights. Contact us today at 1-888-664-5298 to schedule a free consultation and discuss your case.
