Understanding Home & Auto Insurance in Canada

Auto Coverage Definitions

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Collision Coverage:
Covers damage to your car when your car hits, or is hit by, another vehicle, or other object. Pays to fix your vehicle less the deductible you choose. To keep your premiums low, select as large a deductible as you feel comfortable paying out of pocket. For older cars, consider dropping this coverage, since coverage is normally limited to the cash value of your car. Coverage is limited to the terms and conditions contained in the policy. This is not required by a state, but if you have a loan or a lease then the lien holder will require it.

Comprehensive Coverage (Other Than Collision or OTC):
Covers your vehicle, and sometimes other vehicles you may be driving for losses resulting from incidents other than collision. For example, comprehensive insurance covers damage to your car if it is stolen; or damaged by flood, fire, or animals. Pays to fix your vehicle less the deductible you choose. To keep your premiums low, select as high a deductible as you feel comfortable paying out of pocket. Coverage is limited to the terms and conditions contained in the policy. This is not required by a state, but if you have a loan or a lease then the lien holder will require it.

Bodily Injury Liability (BI):
Covers other people's bodily injuries or death for which you are responsible. It also provides for a legal defense if another party in the accident files a lawsuit against you. Claims for bodily injury may be for such things as medical bills, loss of income or pain and suffering. In the event of a serious accident, you want enough insurance to cover a judgment against you in a lawsuit, without jeopardizing your personal assets. Bodily injury liability covers injury to people, not your vehicle. Therefore, it's a good idea (and usually a company requirement) to have the same level of coverage for all of your cars. Bodily Injury Liability does NOT cover you or other people on your policy. Coverage is limited to the terms and conditions contained in the policy. It is mandatory in most states.

Property Damage Liability (PD):
Covers you if your car damages someone else's property. Usually it is their car, but it could be a fence, a house or any other property damaged in an accident. It also provides you with legal defense if another party files a lawsuit against you. It is a good idea to purchase enough of this insurance to cover the amount of damage your car might do to another vehicle or object. Coverage is limited to the terms and conditions contained in the policy.

Insurance Tips & FAQ's

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Auto

How to Prevent Vehicle Theft
Vehicle Safety and Maintenance
Child Restraint Safety
Road Safety
Airbags and Seatbelts
Drinking and Driving
Cell Phones and Safety
Preparing for Winter Driving
What to Do When You Are Involved in an Accident

How to Prevent Vehicle Theft

Although you can not ensure your vehicle will not be stolen you can take a few easy steps to prevent the likelihood of it happening, by making it more difficult for a thief to steal your vehicle and its contents.
Always lock your vehicle
Never leave your keys in the vehicle
Turn off your ignition whenever you leave your car
Avoid parking on the street
Conceal items left in your car, keep things in the trunk and never leave money or compact discs in the open
Whenever possible, park your vehicle in a well-lit, well-guarded, highly visible area
Ask your neighbours to watch out for your vehicle and do the same for them
Install an anti-theft deterrent such as car alarms or an ignition disabler. For tips and more information to help you avoid having your car broken into or stolen please contact the appropriate industry organization in your area (e.g. Vehicle Information Centre).

Vehicle Safety and Maintenance
Read your vehicle owner's manual to understand its maintenance needs.
Maintaining your vehicle according to the manufacturers recommended maintenance schedule will go a long way in extending the life of your vehicle and spotting minor problems before they become major repairs.
Have your vehicle checked by a qualified mechanic whenever you notice a change in braking or handling.
Consider taking a recognized driver safety course.

Brakes: Your brakes are obviously one of the most important components on your automobile. Proper care and regular maintenance is essential to protect both yourself and others from the potential harm caused by faulty brakes. Some signs that your brakes may be failing or require maintenance include:
The brakes squeal, grind or bang when applied. If this occurs you should immediately have your brakes checked
The car pulls to one side when you apply the brakes
The brakes stick or a loss of engine power when you are driving . Your brakes may not be releasing properly which can lead to total brake loss.
The brakes grab when lightly applied. This could be caused by loose or broken brake parts
The brakes need a lot of pressure to work or the pedal needs to be near the floor before it works. This may be a sign that your brakes are worn and replacement is necessary
The brake pedal, steering wheel or entire car vibrates when you step on the brakes.

Child Restraint Safety

It is important to install a child's restraint seat properly in order for it to be effective.
Read the manufacturer's installation instructions thoroughly
Many police departments have programs to help with proper installation For tips and information regarding child seat safety please contact Transport Canada.

Road Safety

Road safety is an important issue on today's crowded roadways. For statistics and information regarding road safety and its impact on social and medical costs please contact Transport Canada.

Airbags and Seatbelts

Airbags have been the topic of much discussion since they have become a standard feature with newer automobiles. For information and guidelines pertaining to use and safety issues of air bags please contact the following organizations:
- Transport Canada
- Canada Safety Council
- Insurance Bureau of Canada

Drinking and Driving

Drinking and driving has been the cause of many unfortunate accidents resulting in serious injuries and loss of life on our roadways. The following organizations can provide statistics and information pertaining to drinking and driving:
- Transport Canada
- Canada Safety Council

Cell Phones and Safety

Cell phones can be valuable equipment in a car when you need to call for assistance. However, they can also be a distraction if they are used while driving, and many jurisdictions are considering restrictions on cell phone use while driving. For safety's sake, don't use your cell phone while driving. If you need to make a call, stop your car safely away from traffic before picking up the phone.

Preparing for Winter Driving

Canadians know that winter driving can be treacherous at the best of times. The following organizations can provide tips and information to help you prepare yourself and your vehicle for safe winter driving.
- Canada Safety Council
- Transport Canada

What to Do When You Are Involved in an Accident

Being involved in an accident can be a very stressful event. To help you protect both yourself and your interests, we have provided some basic hints:
Call the police immediately, and an ambulance if necessary.
Do not admit liability.
Record details of the accident including date, time, location, a description of the accident, any injuries, and any charges laid.
Record details concerning the other party and vehicle such as owner's name and address, phone number, and vehicle year, make and model.
It is very important to obtain the insurance information of the other driver. This includes the name of the insurance company and the policy number and the name of the broker or agent.
Obtain a copy of the police report from the attending officer as this will have the accident report number for future reference. These tips are general rules of thumb only, and may not fit all situations. For the definitive word, contact your insurance broker for more information.

Understanding Ontario Auto Insurance

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If you own your own car, you probably already know a little about car insurance. You may have heard the words deductible or premium. But, do you truly understand the different parts of an auto insurance policy and do you know how to choose the best coverage? In Ontario, Canada, it is required that you have at least some form of car insurance, so it's a good idea to know what the law requires you to have and what additional or optional coverage will help to protect you in the event of an accident. Before purchasing auto insurance, you must consider a variety of factors including what kind of car you have, your driving record, any groups you belong to that can make discounts available, past insurance history and payment plans. Understanding the simple basics of auto insurance will make you confident that the car insurance policy you choose will take care of your needs in the event of an accident.

In this article, we will walk you through the types of coverage that insurance companies offer and discuss possible insurance needs. Additionally we will look at what affects the price of auto insurance, how to bring the costs down and how to understand the components of your policy.

Types of Coverage
Everyone who drives needs car insurance. In fact, most provinces require it by law. When you buy car insurance, you are buying what is called a "policy." Your policy is based on a variety of factors including what kind of car you drive as well as what kind of insurance you want. Auto insurance policies are actually a package of different types of insurance coverage. The first step in understanding an auto insurance policy is to learn the various types of coverage insurance companies offer. Some of this coverage may be required by your province and some of the coverage may be optional.

Liability - This coverage pays for accidental bodily injury and property damages to others. Injury damages include medical expenses, pain and suffering and lost wages. Property damage includes damaged property and automobiles. This coverage also pays defense and court costs. Provincial laws determine how much liability coverage you must purchase, but you can always get more coverage than your Province requires.

Collision - This coverage pays for damages to your vehicle caused by collision with another vehicle or object.

Comprehensive - This coverage pays for loss or damage to the insured vehicle that doesn't occur in an auto accident. The types of damages comprehensive insurance covers include loss caused by fire, wind, hail, flood, vandalism or theft (perils).

Medical Coverage - Pays medical expenses regardless of fault when the expenses are caused by an auto accident.

Uninsured Motorist - Pays your car's damages when an auto accident is caused by a driver who doesn't have liability insurance. Rental Reimbursement - This type of coverage will pay for a rental car if your car is damaged due to an auto accident. Often this coverage has a daily allowance for a rental car. Many insurance policies combine a number of these types of coverage.

No Fault Insurance - This is a general term that is used to describe any auto insurance system that both requires drivers to carry insurance for their own protection, and that places limitations on their ability to sue other drivers for damages.In an accident, under no fault laws, your auto insurance company will pay for your damages (up to your policy limits), regardless of who was at fault for the accident. Any other drivers involved will be covered by their auto insurance policies. The first step in choosing the insurance you want for your car is to know the laws in your Province. This will tell you the minimum insurance you need for your car.

Your insurance broker such as Mass Insurance can best direct your needs for your locaion if in Ontario, Canada. It's good to keep in mind that, just because your Province may not require extensive insurance, extra coverage may be worth the expense. After all, no one wants to be stuck with thousands of dollars worth of bills because of an auto accident. Now, let's take a look at how to determine your insurance needs.

Know Your Needs
Just because your Province requires a minimum amount of insurance doesn't mean that's exactly what you should purchase. In fact, most motorists purchase more coverage than their Province requires so that they are covered for a variety of problems -- not simply a fender bender. In order to better determine your auto insurance needs, consider these five guidelines:

Know Your Provincial & Statutory Laws
Remember that Ontario law requires that you purchase liability insurance. Liability insurance is what pays for bodily injury and property damage that you cause another driver. This coverage pays for your medical expenses and lost wages in the event of an auto accident. Your insurance minimum will most likely be determined by Provincial law, but many people are encouraged to purchase more than is required.

Know Your Options
There are a lot of car insurance options; but knowing what you most likely will need is the key to making sure you are appropriately covered. Do you want coverage for a rental car if your car is damaged? Do you want an extended warranty to pay for parts and labor if your car breaks down? If your car is leased, you will probably need gap insurance which pays for the difference between what your insurer pays and what you owe on your lease if the car is completely totaled.

Know How Much Money You Want to Spend
If you know your state laws and have examined your personal needs, now you can put together the different pieces of auto insurance coverage in one total policy. The first piece of the policy is almost always liability insurance. If you only have minimum liability coverage and you injure someone, their attorney can go after your personal assets. So, you need to know your assets and what you can afford to lose in the event of an accident. Many insurers feel that minimum liability is a gamble. In fact, that is why it is often only a little more money for more protection. After all, if you do get into an accident, it is much better for the insurance company to be responsible than for you to be personally responsible. Remember to run through various scenarios such as if I totaled someone else's car, will my insurance cover it? How much will I have to pay out of my own pocket? The answers to these types of questions will determine what coverage makes you feel most confident should an accident happen.

Know Your Vehicle
If your car was totaled, would you be able to afford to replace it? If not, you will want comprehensive and collision coverage. The decision to buy this coverage is usually based on the value of your car. Guidelines usually suggest that if your car is worth less than $2,000, it won't be worth it to buy comprehensive and collision. If you own a $50,000 car though, it would most certainly be worth it to pay an extra $200 annually or so to insure that your car will be replaced if you get in a serious accident.

Know About Your Other Insurance
Many people don't realize that other types of insurance including health insurance and homeowners insurance may pay for damages due to an auto accident. Make sure you know what insurance coverage you already have so that you don't purchase unnecessary coverage. The best way to figure out your own auto insurance needs is to examine potential policies and know how much you are willing to gamble. For instance, it may not be worth it to you to purchase collision insurance if your car is not incredibly valuable and would therefore cost less to fix than to keep insured.

Auto insurance is simply about how much you are willing to pay out of your own pocket versus how much you want the insurance company to cover. Once you decide this, you're all set to purchase your auto insurance policy.

Visit www.massinsure.com

or call 800-663-6277 in Ontario