In the end, I hope to remove the shroud of uncertainty when it comes to auto insurance, to assist you in confidently answering insurance-related questions, and most importantly, add to your peace of mind. So, let’s jump into it, shall we?
1. When you lend your vehicle to someone, you are also lending your insurance.
For instance, if your friend borrows your car to run an errand and has an accident while driving your vehicle, your insurance policy will pay for the damages and your insurance record will have a claim against it.
This began with the concept of No-Fault Insurance. Each insurer pays the losses of their own vehicle (exceptions can be made with the help of a broker).
TIP: talk to your insurance broker about All Perils
2. Demerit points do not affect your insurance.
The insurance industry is governed by Financial Services Commission of Ontario, and has no affiliation with the Ministry of Transportation. So, if you are told to fight your ticket to reduce your demerit points and save money on insurance, that is incorrect.
However, the severity of a conviction may affect your insurance rate. A conviction for 10 km/h over the limit may be rated differently than a conviction for 40 km/h over.
Something to consider: Do you have conviction protection?
3. You cannot insure a vehicle under your policy unless the vehicle is in your name.
Many times we have parents hoping to insure their child’s vehicle under their policy, however that vehicle must be in the name of the parent to do so. The only exceptions are married couples.
TIP: talk to your insurance broker about what could happen if this rule is not followed.
4. The type of car you drive affects your insurance.
Okay, you knew that one. What you may not know is that it is not solely based on the cost of the vehicle. For instance, a Honda Civic may be more expensive to insure than a high-end Volvo.
This relates to statistics of claims related to a specific vehicle. There are not many 22 year olds drag racing Volvos.
5. Independent Insurance brokers and insurance agents aren’t the same.
Hhave you ever wondered what the difference is between an independent insurance broker and an insurance agent? An independent insurance broker works for you, and an insurance agent works for an insurance company.
Imagine your personal shopper worked exclusively for one store. Wouldn’t that limit your options?
Well, there you go: five things that you may not have known about auto insurance. Hopefully, there were a few eye-openers that you can refer to the next time insurance comes up over a glass of merlot.
I would like to leave you with one thought: When you consider your insurance, are you currently being provided a policy or an experience? If it doesn’t feel like an experience, challenge yourself to expect more. You might be surprised!
Need more information about auto insurance? We’re here to help! For questions or to get a quote online, please visit www.dreaminsurance.ca or call us at 1-833-553-7326.
Our clients Dream Big about the quality of life and experiences that is important to them and their family. Let us do the rest by delivering insurance solutions that support and protect these dreams.
Sheldon D. Williams is the Head of Sales for Dream Insurance; a Toronto based digital insurance brokerage, providing commercial, personal and specialty coverage. Dream Insurance is a division of Dream Maker Corp, and is a franchise member of InsureLine, a leading Insurance Brokerage network in Canada.