Q Is my coverage valid for someone else who drives my car? I only have one driver listed on my policy.
A Yes. Your policy covers the car as long as that person has a valid license and is driving your car with your permission.
Q Does my insurance price get affected if I increase my deductibles?
A Yes. Increasing deductibles simply means that you are sharing the risk. This will reduce the cost of your insurance accordingly.
Q Am I entitled to receive a replacement car automatically while my car is being repaired?
A This coverage is termed as Loss of Use or Coverage for Transportation. This coverage is not automatically available, but it can be added to a policy.
Q In case of a repair, can I use any bodyshop? I would like to get multiple quotes. And what if the bodyshop I choose is more expensive?
A Yes. You can use any bodyshop you want and you can get multiple quotes.
Q Does the type of vehicle I drive affect my premium?
A The premium is based on statistical data and historical claims made for the make, model and year of your vehicle. This data includes the likelihood of your type of car being stolen, the damage it is likely to sustain in an accident, the cost to repair that damage, and the likelihood and severity of physical injuries being experienced by the passengers in an accident.
Q I am looking to purchase a new car. What types of vehicles are cheaper to insure?
A This information can be best reviewed at the website of Vehicle Information Centre of Canada. Go to the section of “How Cars Measure Up”. This should help you identify the best claim experience for collision, comprehensive and bodily injury claims as well as the claim costs and theft frequency for cars you are considering.
Q Does the area where I live affect my premium?
A Yes. Premiums are based on the data of historical claims in a certain area. Generally larger urban centers and high traffic regions have a greater potential for accidents, theft, and damage to your vehicle, resulting in a higher premium.
Q Do all cars depreciate equally?
A No. Depreciation for each car varies depending on numerous historical and statistical factors. These include damageability, reparability, market value of the vehicle, upkeep of the vehicle, kilometers driven, etc.
Q How is depreciation calculated? Do all insurance companies use the same information?
A The depreciation value of each vehicle is based on several factors such as mileage, damageability, wear and tear. The automotive industry determines the depreciation value using the same data.
Q Why do I pay more premium if I use my car for my business?
A Vehicles that are used for business purposes are generally driven more frequently. This increases the potential of being involved in an accident. The greater the potential of an accident, the higher the premium you may be required to pay.
Q Which provinces currently have a graduated licensing system?
A Graduated licensing is currently found in Ontario, Quebec, Nova Scotia, New Brunswick, Newfoundland, British Columbia, and Prince Edward Island.
Q What is the difference between mandatory and optional auto insurance?
A In Canada auto insurance varies by province. Mandatory insurance for vehicle owners may include liability coverage, accident benefits, etc. Optional insurance is likely to include collision and comprehensive coverage. To learn more about auto coverage in your province/territory, visit the Insurance Bureau of Canada or contact us.
Q What is the difference between collision and comprehensive coverage differ?
A Collision coverage is designed to cover damages caused to your vehicle by a collision. Comprehensive coverage is designed to provide protection to your vehicle for causes other than collision (such as hail, flood, theft, fire, glass breakage, falling objects, missiles, explosions, earthquakes, windstorms, vandalism or malicious mischief, and riot or civil commotion). Both collision and comprehensive coverage’s are optional and subject to a deductible.
Q Are the contents of my car covered under the policy?
A The contents of your vehicle that are not permanently attached may be covered under your home insurance policy. This could include, for example, portable stereo or CDs.
Q Is insurance mandatory when renting a car?
A In Canada and the United States you are legally responsible for any damage caused to the rental vehicle. Additionally in some Canadian provinces and American states third party liability insurance is required in case of bodily injury and property damage to others. As coverage also varies depending on the province, state or country you are in and the type of vehicle you are renting, it’s best to contact your agent or local service office for information specific to your situation.