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With over 160 million registered vehicles on the road today,
auto insurance is the most widely purchased of all insurance
policies. Over the years I have found that many "Myths"
have developed! These "Myths"
are also the most frequently asked questions.
The following examples apply in Canada.
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 "If
my car is broken into - the contents are covered" |
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 Wrong! |
Most people believe everything in the car is covered
through automobile insurance. Comprehensive coverage
on automobile policies is one of the most frequently
carried optional coverage's, but it is limited and
coverage only applies to such items specific to
that vehicle such as the radio, stereo, CD, cassette
player and one tape/CD. Items commonly stolen and
not covered include briefcases, purses, coats, sunglasses,
presents, laptop computers, tools, cell phones,
sports equipment (e.g. golf clubs or skates)
How do I get coverage
for these?
Home, tenant, condo, business insurance can provide
theft coverage but this may be very limited also
and if not insured through the same insurance
company, a separate deductible will apply! Call
your agent and know what is covered under your
policies BEFORE not AFTER it happens to you.
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| "If
I beat the ticket in court, I'm not at fault for the accident" |
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Wrong! |
Residents of Ontario, Canada, are governed by a
"no fault auto system" in which the name
itself leads to confusion. Regardless of whether
a ticket/charge applies (or does not), the insurance
company still must determine the degree of fault
for any and all vehicles. For more information,
read the article on this. You'll enjoy it and it
goes into much greater detail.
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| "I
cannot lend my car to anyone under 25 years old" |
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Wrong! |
Any person who has a valid drivers license in Ontario
Canada is covered as long as they meet the conditions
of their license. I won't get into G1, G2 restrictions
here just to keep it simple. Be aware however, that
lending your car to a licensed driver may cost you
money, if that person does not carry their own car
insurance or has an "at fault" accident
in your car.
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| "It
was an Act of God or due to the weather loss" |
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Wrong! |
No fault Insurance governs Ontario Canada residents
and for coverage to apply, the insurance company
must determine the degree of fault. In simple terms,
determination decides if it is a liability claim,
accident benefit claim or whether it falls under
optional coverage (if purchased) claim sections
such as collision, comprehensive, underinsured motorist
coverage, rental car coverage, waiver of depreciation,
etc. This determines whether you are covered. Is
a deductible applicable? Just to mention a few.
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| "Auto
insurance rates keep going up....it's a fact of life" |
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Wrong! |
Auto insurance rates vary from company to company
by maybe as much as even hundreds of dollars per
year! All insurance rates ARE NOT the same. Each
company bases it's rates on it's own experience
& losses, marketing strategies, discounts available,
etc. With many insurance companies available through
an independent broker, you have an opportunity to
save money! But, there's more to it than getting
a cheap rate. Look for...value for your money. That's
what really counts. How will a claim be handled?
Is the company financially secure? How is the insurance
company rated among it's competitors? Can you deal
with the same person all the time? Do they explain,
define and answer your questions? Do they keep in
touch or do they just mail you a renewal out year
after year? Is the broker innovative (the insurance
industry is changing rapidly). Is your broker available
24 hours a day through the Internet? These are just
to name a few! Value.....is important.
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