Frequently Asked Questions

A: Ontario law requires that all motorists carry auto insurance. Fines for driving without valid auto insurance could be anywhere between $5,000 and $50,000.

A: The mandatory automobile insurance coverage in Ontario is: $200,000 of third party liability, statutory accident benefits, uninsured automobile and direct compensation-property damage, however most companies will provide a quote with a minimum $1,000,000 liability limit.

A: In addition to the mandatory insurance, drivers can purchase coverages such as:

Collision coverage: this coverage pays for repair or replacement of your vehicle if it collides with another vehicle, flips over, or crashes into an object, as a result of accidents that you cause.
Comprehensive coverage: this coverage pays for losses from incidents other than a collision, such as fire, falling objects, theft and vandalism.
Increased third-party liability limit: the mandatory amount is $200,000 but you can increase the amount up to the limits the company provides. Additional protection of $1,000,000 is usually purchased.
Underinsured motorist coverage: part of Family Protection Coverage, it protects you or an eligible member of your family, to the same limits as your Third-Party Liability coverage, if you are involved in an automobile accident where you are not at fault, with someone who carries less insurance, no insurance, or is an unidentified driver..

A: A deductible is the portion of a claim for damages to your vehicle that you must pay. Higher deductibles result in lower premiums, but higher financial risk to you. A deductible for Direct Compensation - Property Damage provides you with an additional option to lower your premium. If you choose this option, a deductible will apply even when the accident is not your fault.

A: Insurance companies use a variety of risk factors to determine a premium. The cost of automobile insurance for different drivers varies as the level of risk for the insurance companies varies. Factors that could affect your premiums include:

• driving history, including previous at-fault accidents and driving violations;
• type of vehicle including make, model and model year;
• where you keep and drive your vehicle;
• the age and gender, along with the number of years licensed;
• the number of kilometres driven in a year;
• whether the vehicle is used for pleasure, commuting or business purposes.

A: If an insurance company decides not to renew your policy, it must notify you in writing at least 30 days before the expiration date of your policy. The notice must quote the reason it will not renew. The following are examples of reasons that companies use for non-renewal of a policy:

• you have had two or more at-fault accidents within the past six years;
• you have been convicted of a major or several minor driving violations in the last three years;
• you added a vehicle which the company does not insure, such as a commercial truck or an expensive sports car.

A: No-fault insurance means that if you are injured or your car is damaged in an accident, you deal with your own insurance company, regardless of who is at fault.

A: A police officer may say that neither of the drivers were at-fault in a situation such as a vehicle being unable to stop on an icy road and rear-ending another vehicle. Such a comment relates to the laying of charges and should not be taken as an opinion about how the Fault Determination Rules apply to an auto insurance claim. In a case like this, the insurer would apply the rule stating that a vehicle which rear-ends another is at-fault.

These are the rules that are used by all insurance companies to assign fault in an automobile accident. To find these rules go to the following link:http://www.e-laws.gov.on.ca/DBLaws/Regs/English/900668_e.htm

A: Some insurance companies offer endorsements to drivers that will allow them to maintain their driving record or premium after a first at-fault accident. Most companies will change your driving record to reflect the accident and increase your premium. Once you have regained your six years of accident-free driving you can return to lower premiums
If this is your second at-fault accident in the last six years, you can expect your premiums to increase quite significantly.

A: As the owner of the vehicle, you are responsible for anyone who drives your vehicle with your permission. If your friend has an at-fault accident while driving your vehicle, the accident will become part of your driving record and will affect your insurance premium the same as it would if the accident was your own.

A: Yes, it is allowed, and is common practice among insurers. And while it may seem like a money grab, there is some logic behind the practice. The thinking goes that, if there are three cars and three drivers, each driver must be rated as a principal driver. Since your son, in theory at least, has access to a car at all times, he cannot be rated as an occasional driver. Even though you may control your son's access to the car, if insurance companies did not take this position, sons and daughters everywhere would register their cars in the name of their parents and then claim to be occasional drivers. They'd save money on their insurance, but everyone else would have to pay more to subsidize their higher accident rate. If you are a long-term client with a good claims record, you may be able to convince your insurer to reconsider its position, but don't count on it.

A: Your insurance in Canada covers you for driving anywhere in the United States (including Hawaii and Alaska), but not in Mexico. If you are planning to drive in Mexico, you will need to buy insurance coverage from a licensed Mexican insurance company. Check with your insurance provider or travel agent before you go.

Also make sure that your insurance doesn't expire while you're away, and that you're carrying enough liability insurance. Remember, any lawsuits filed against you there would be payable in U.S. dollars, and payouts for personal injury lawsuits can be hefty in some states.

A: As long as she still has a permanent residence in Canada and is just away to attend school, she can continue to use her Canadian insurance policy.
However, you should advise us if you are going to be living in a different geographical area, even on a temporary basis. The insurance company will then alter the premium to reflect the increased (or decreased) risk of the insured driving in that area.

A: Yes, it is, generally for two main reasons:

Non-payment of premiums: Your insurance premium is due as soon as you receive the bill. If you don't pay it, your insurer will cancel your coverage, plain and simple. If you can't pay the premium as promised, contact us and we will put you on a monthly payment plan. If your payment is automatically deducted from your bank account, make sure you always have enough money in the account to cover it in order to avoid NSF fees. If you decide to change your insurance carrier at renewal, you must notify us in writing of your intention not to renew; otherwise, you are still committed to that insurance and on the hook for the payment.

Inaccuracies or omissions in your application, intentional or not: The insurer could also cancel your insurance if you didn't report a change in the risk ?for example, if you start using your car to make deliveries, while your insurer thinks it is being driven for pleasure only.
Remember that a cancellation will appear as a black mark on your insurance record that will follow you everywhere. It will affect your future premiums

If you have any further questions about cancellations or non-renewals, please contact us

A: Yes, the insurance company can do this, and it will. Insurers assume that, even though the spouse does not normally drive the insured person's car, the opportunity is there for him/her to do so.

A: Yes, you will be penalized if you caused the loss or damage. Your premiums will rise considerably.

This is why it's not a good idea to claim for minor damage on your property policy. Since you have to pay the deductible (the portion of the claim that you agree to pay), it probably isn't worth it to make a small claim anyway. Save your claim for a major loss that you cannot afford to pay out of pocket.

Why, you ask, should I pay for a loss myself when I buy insurance for that very reason? That's a good question. But don't think of insurance as a cumulative payment that adds up over the years; think of it as buying protection for a one-year period against a large loss.

A: NO! Even the most extensive type of Property policy lists more than 30 exclusions (perils that are not covered). All risk generally means that everything is included, except what is excluded on the policy, and there are quite a few exclusions such as:

• Damage caused by wear and tear, rust, corrosion, or gradual deterioration, like a leaking roof or a rusty oil tank that springs a leak because it hasn't been properly maintained.
• Damage caused by vermin, rodents, and insects.
• Damage caused by flood.
• Damage from volcanic eruption.
  Damage caused by earth movement, including earthquakes, landslide, and mud flow (earthquake coverage is available, but it doesn't come cheap).
• Damage caused by water seepage, through the foundation or an open window, for example.
  Water damage caused by pipes freezing if you are away more than four consecutive days, unless you have someone checking your house on a daily basis).
• Loss or damage to personal property on premises that have been vacant for more than 30 days (not just because you're on vacation, but because you have moved and do not intend to return).
• Intentional loss by, or at the direction of, an insured; in other words, fraudulent claims.

This list is not exhaustive, so be sure to ask call us if you have any questions about what your particular policy covers.

A: You should contact us immediately to provide us with information concerning your move ?date, new address, details about your new home, etc.

Most policies cover your property while it is in transit, as long as your residential insurance policy is still in force. Insurers allow 30 days for you to complete your move, but check to see whether your insurance policy covers both your old and new residences.

If you plan to store some possessions in a storage facility your insurance policy does not cover property in storage against theft, so it is important to check whether the storage facility has adequate insurance to protect you in the event of theft.

Note: If you are moving from an apartment into a house, you will need to change your policy from a tenant's to a homeowner's. And if you're moving in with anyone don't forget to have their names added to your insurance policy so they'll be covered.

A: Your insurance will cover the contents of your house to the amount specified in your policy, as well as the cost to repair or rebuild your home (assuming you have replacement cost, as most policies do) for the value it is insured in your policy.

It will also pay for any additional living expenses you incur while waiting for your house to be repaired, check with us to find out what the limits are on your policy. These costs could include relocation and storage expenses, food and lodging if you have to stay in a hotel, additional transportation costs to and from school or work, or maybe furniture rental for a temporary residence.

A: Yes. If you have guaranteed replacement cost on your policy, you must inform us of any renovations immediately. Guaranteed replacement cost means that, if your house was destroyed, and it cost more than the value of the policy to rebuild it, this coverage would make up the shortfall, subject to certain limits. Therefore, the insurer must be aware of any changes so it can insure your house for its full replacement cost.

If you don't tell us about the renovation, your oversight could prevent you from claiming the full replacement value if your house is destroyed.

On the brighter side, your renovation may save you money on your insurance premium if, for example, you replaced old plumbing and wiring with new.

Just remember: Don't wait until the renovation is complete before you increase your coverage. If your addition is damaged or destroyed before you have it insured, you could be on the hook for the cost of repairing or rebuilding it if you haven't advised us of it in advance. A good rule of thumb is if you are unsure, just contact us and we can discuss it.

You will need to have/know the following information to receive an auto quote:

• Your address, including postal code
• Birth dates of the registered owner and all drivers of the vehicle(s)
• The type of drivers licence you have and the year/years obtained along with the other drivers of the vehicle(s)
• The Year, Make & Model of your vehicle(s)
• The driving records of all drivers of the vehicle (Accidents in the past 9 years, Tickets in the past 3 years)
• Your current insurance company and information about your past insurance experience

 

You will need to have/know the following information to receive a Property quote:

• Your address, including postal code
• Current value of your home as outlined on your current Property policy. (If you do not currently have a policy on your home, you will have to give an estimated value for quoting purposes, usually the purchase price)
• Details about all of your previous claims (if any)
• The ages of your roof, furnace, wiring (type and age)
• Current insurance policy number and expiry date (if applicable)

A: If you have any problems technical or otherwise, please contact us by phone, email or live chat and we will do our best to resolve the issue.

A: While our goal is to provide as many people as possible with an online quotation, there will be certain situations in which one of our brokers will need to speak with you in order to complete your quote. You can contact us any time through email, live chat or phone and we will be happy to help you through the quoting process explaining the reason and/or reasons that you were not able to receive a quote online.

The above is intended as general information only, and does not constitute legal advice. Be sure to check with your broker representative regarding your specific situation.