Why Home Rates are Increasing

Home and auto Insurance rates continue to increase. Here are some of the reasons

About Your Home Insurance Renewal

Why are Changes Required?

For the past several years across Canada we have been hit with unprecedented natural disasters, including massive flooding, ice storms, and severe snow storms. These weather systems have resulted in extensive property damage, and insurance companies have paid claims to over 100,000 Canadian families as a result of these storms alone. Canadian Insurance companies were there to help these people through their times of crisis.

Rising Rates

For many companies, every $1.00 collected in premiums in Ontario in 2000, they paid out more than $1.37 to $1.58 in claims and related expenses. The balance between the premiums they earn on insurance policies and claims pay out must be restored. Most, if not all, insurance companies are faced with the same reality of having to increase rates to ensure the financial stability of the kind of insurance that Canadians deserve.

Coverage Changes

While some of the property damage claims are clearly unavoidable, others are preventable with appropriate inspection and maintenance of the insured property. Due to the alarming potential for further claims of a preventable nature. Companies are forced to add certain restrictions to coverage, most will not insure a home without a new oil tank installed outside.

If you have any questions about the changes to your policy, at renewal you should contact your Insurance Broker.

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New Year Insurance Revisions

Most changes to Ontario auto policies become effective in 2000.

• Death benefits, enhanced accident benefits and psychological injury coverage will be extended to same-sex partners and their children.
• To qualify as a spouse, the same-sex partners must have been together for three years, or earlier if there are children.
• Volunteer drivers will be able to accept payment for reasonable expenses and still be covered under an ordinary policy.
• Partners and employees, and not just owners, will be covered under the owner’s policy while at work selling, repairing, servicing, storing or parking cars. Exclusions for illegal activity, such as being impaired by alcohol, will apply to operating a car as they do to driving a car.
• Basic loss or damage coverage will only apply to factory-installed equipment in a car or trailer, apart from $1,500 for aftermarket electronic equipment and up to $25 for recording tapes or discs held in a player.

The entire policy can be viewed on the Internet at www.fsco.gov.on.ca in the section on insurance. Call your Broker for a copy or to ask questions.

Excerpt from “Money Talk” by James Daw in the Toronto Star

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Auto Theft a Thriving Business

Unfortunately, stealing autos in Ontario has become a $500 million business annually. Why? Because the profits are good, potential punishment is minimal, and Toronto has only an 8-person squad attempting to curtail this activity. With an average of about 1,000 autos stolen each month, this qualifies as a major crime, and difficult to control.

Stolen autos offer great savings to buyers, and great profits for the auto theft ring. A $45,000 sale of a stolen luxury auto can represent savings of about $15,000 to $20,000 to the buyer, and still provide profits to the theft ring of about $35,000 to $40,000. The rest goes towards costs to alter the VIN number, cosmetics for appearance changes and payment to the thief. This is why auto theft has attracted such attention from organized crime, street gangs, traditional B&E thieves, independent car jackers and even groups from other countries.

PREVENT THEFT

Install a hidden ENGINE CUT OFF SWITCH that Speedy or Apple Auto Glass can install for less than $100. Most manufacturer installed systems, the theives have figured out.

Purchasing a Boomerang Alarm System is the best way to prevent theft www.boomeranglink.com

The Insurance Bureau has done comparisons on theft systems. Click Here

There may not be an “ultimate” defense against auto theft, but your insurance agent might be able to provide some advice on how to best protect your auto. As for avoiding the risks of buying a stolen car, check the “Tips For Buying A Used Vehicle”.

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Claiming Forgiveness

Many Insurance companies offer Claims Forgivness. Be sure you know what insurance companies mean when they say they have "claims forgiveness"? Here's how it works. If you've been driving six or more years without having a claim, you receive the best insurance rates. Most insurers call this a "6*" (six star) rating. If your insurance company doesn't offer claims forgiveness, and you have an accident where you're at fault, your rating will he changed to reflect that you've been driving zero years claims free - a "0*" (zero star). Consequently, your premium will be significantly affected. However, if you're insured with a company that has claims forgiveness, they'll only change your rating to a "5*" (five star) or less, depending on the company involved.

It's important to find out if your insurance company offers claims forgiveness. Even if there's a small charge necessary to get this coverage, it's well worth paying a few dollars extra each year, rather than have your premiums jump dramatically after an accident. So check with your insurance broker to see if claims forgiveness is available to you.

Excerpt from CARP News, Fifty Plus, April 2000

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Prevent Accidents

Accidents can be prevented. Be defensive when driving. What causes traffic accidents? A recent General Motors survey found that almost half of all accidents could be traced to mistakes like running a stop sign.

We all know the cost of accidents -- in repairs, fines, rising insurance premiums and injuries. What can you do to avoid an accident? Some of Canada's top driving professionals offer these tips:

• Inspect your vehicle before heading out. Are your mirrors, windows and outside lights clean? Do your signals work? Is your windshield washer tank full? Are your tires inflated properly?
  
  
• On the highways, collisions are often caused by differences in speed. If you're too fast, you tend to change lanes often. If you're too slow, others may take risks to pass you. Stick to the speed limit and remember that on multi-lane highways, slower traffic should always keep to the right.

Excerpt from CARP News, Fifty Plus, April 2000

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Ask an Expert

My nephew comes to visit me each summer. We each have our own car insurance. Is there any problem with me lending her my car?

When you lend your nephew or anyone else, including your children, your car, you're also lending your insurance policy. If she has an accident, it'll be claimed under your insurance policy and will stay on your record, even though she has her own policy. Always keep this in mind when lending someone else your car.

Excerpt from CARP News, Fifty Plus, April 2000

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No Sticker ?

If you’re an individual vehicle registrant, your plate validation sticker expires on your birthday, not at the end of the month on your sticker. The fine for driving with an expired validation sticker is $90, so make sure your licence plate sticker is renewed on or before your birth date.

Excerpt from MTO "Centreline"

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Vehicles Can Be Impounded

Cars driven by persons apprehended for driving while their licence is suspended for a Criminal Code conviction will be impounded for a minimum of 45 days.

Vehicles will be impounded, regardless of whether the vehicle is borrowed from a friend or family member, used for business or employment purposes, rented or leased. All vehicle owners have a greater responsibility to ensure that suspended drivers do not drive their vehicles.

Check for a valid driver’s licence by:

• Calling 1-900-565-6555 using a touch-tone phone ($2.50 per driver licence check will be charged to your phone bill).
• Accessing the Ministry of Transportation’s website at: www.mto.gov.on.ca/english/dandv/check.htm ($2.50 per driver licence number check, payable by Visa or MasterCard).

For more information, call 1-800-387-3445 or 416-235-2999 in the Greater Toronto area, or access the Ministry of Transportation’s website at: www.mto.gov.on.ca/english/safety/vip

Excerpt from MTO "Centreline"

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Seat Belts Save

Seat belts and child restraints save lives. Buckle up your seat belt for each and every trip, and make sure you use child safety seats correctly. There is a $90 fine plus a $15 victim surcharge and two demerit points for anyone caught not wearing a seat belt.

Excerpt from MTO "Centreline"

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Tips For Buying A Used Vehicle

Avoid sales people who:

• Pressures you to make a hurried decision.
• Discourages you from checking facts.
• Private sellers who avoid having you view the vehicle at their home or if they are a dealer, have no office, lot and sign.
• Suggest that you can avoid paying tax.They want to ensure that you won’t go to the authorities if there’s a problem.

Ask to see the Used Vehicle Information Package if you’re buying from a private seller (they’re required, by law, to provide it) to verify:

• Approximate retail value.
• Registrant history (to determine if the vehicle is registered in the name of the seller and to see how much experience the seller has with the vehicle).
• That date of first registration is close to year of vehicle (vehicle may have previous history in another jurisdiction).
• If there are liens registered against the vehicle.

Purchasing from a dealer is best. You save GST and PST. If buying from a dealer, ask to see the dealer’s and salesperson’s registration certificate issued by the Ontario Motor Vehicle Industry council. All motor vehicle dealers and salespersons must be registered. You can claim against the Motor Vehicle Dealer’s Compensation Fund if you suffer a financial loss in purchasing a vehicle from a registered dealer.

For more information about buying or selling a used vehicle call 1-800-267-8847, Telephone Device for Deaf 1-800-461-8866.

Excerpt from MTO "Centreline"

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