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Accidents

My husband backed into my car this morning as he was leaving for work. His PLPD insurance will cover the damage to my car, right?
No, your husband's policy will not cover the damages to your car. PLPD (Public Liability and Property Damage) coverage only cover 3rd parties. Since an auto insurance policy is a legal contract, a spouse is not considered a 3rd party. In order for your damages to be covered, you must carry collision coverage on your vehicle; also, if there were damage to your husband's vehicle, he would also require collision coverage to have his vehicle repaired under the policy.   [Top]

For how long will my auto accident continue to affect my policy premiums?
Most insurance companies take into consideration a 6-year span when rating auto-driving records. Because of this, the accident will continue to affect your premiums for a full 6 years.  [Top]

If I lend my car to a friend, what if he has an accident with it?
You are financially responsible for the consequences of loaning your car. Also, if you borrow a car from someone else you cannot insure it, as you are not the registered owner. Only the registered owner of a vehicle can insure it (the only exception being leases).  [Top]

If I have an auto accident, how much will my insurance go up?
If you have been licensed and insured for at least 5 years and have been accident and conviction free for that time, the average increase is approximately 5-15%.  [Top]

If my vehicle gets hit in a parking lot be an unidentified driver (hit & run), will this be covered under comprehensive?
No; this is a collision claim. If you carry collision coverage, your claim will be paid (subject to your deductible). Fortunately, this type of claim is not "chargeable", and will not increase your premiums.   [Top]

Other Drivers & Vehicles

My husband and I wish to add a third vehicle to our policy. We also have 17-year old daughter who will drive our vehicle occasionally. Why has the insurance company rated her as the principle driver for the third vehicle?
Insurance company statistics have shown that in most cases like this, the third vehicle is usually driven principally by the third driver - i.e., the son or daughter.  [Top]

I am adding a second vehicle to my policy; since it will not be driven often, shouldn't my premium be a lot lower?
A pleasure use vehicle premium is about 10% lower than if the vehicle were being taken to work every day; in addition, you will also receive a multi-car discount of 10% for each of the coverage's that the two vehicles have in common.  [Top]

Is anyone covered to drive my car?
Check with your broker before loaning your car out to anyone! All drivers should be declared to your insurer. Don't' forget that you are responsible for any claims arising from the operation of your vehicle.   [Top]

Is my son or daughter automatically covered to drive my vehicles, now that they no longer live at home?
No, even though your child is no longer living at home, they must be insured to drive.  [Top]

Why is it so much more expensive to insure my son for my vehicle than my daughter?
Unfortunately, at this time statistics indicate that young males are involved in more accidents than young females... (Sorry, guys!!)   [Top]

Why do other drivers in my household affect my insurance? This is my car and no one else drives it...
This may in fact be the case in your situation... but experience has shown that in the majority of cases all household members will have access to your vehicle at one time or another. Many accidents have been caused by other members in a household who were never declared as drivers.   [Top]

Do I need to add my son or daughter when they get their beginner's license?
Yes; contact your broker with the Master Number from their driver's license. Most companies will not charge any premium until they actually receive their "regular" license.  [Top]

Why is a second vehicle as expensive to insure as a first vehicle when I can't drive both at the same time?
There is a multi-vehicle discount available if you insure more than one vehicle. If you are not driving one of the vehicles for extended periods (a few months for example), call your broker to have the coverage suspended. You will receive a refund for the unused portion of the insurance on that vehicle.   [Top]

Premiums

The cost of my auto insurance seems to keep rising. Is there anything I can do to lower the premium?
Yes, increasing your deductibles will reduce your premiums. As well, review your policy with your broker to determine if you qualify for any discounts.  [Top]

Will my insurance be cheaper if I register the vehicle in someone else's name?
No, because an insurance company is more concerned in who will be driving the vehicle, and what the driver's record and accident history is like, rather than in who's name the vehicle is registered.   [Top]

I've been claim free all my life; why does my premium continue to rise each year?
The frequency and severity of losses that an insurance company had the previous year will usually determine their rates for the current year. If you are claims free, many insurance companies do offer claims free discounts. Check with your broker, and review your file!   [Top]

I only paid $10,000 for my car and my neighbour paid $30,000 for hers". Why is my collision/comprehensive premium so much higher?
The insurance industry began using a method called "clear rating" of vehicles to determine the premiums charged under collision and comprehensive. The clear rate groups are published by an independent firm called VICC and are based upon things like safety features, repair costs and theft deterrent devices. Depending on the past performance of the vehicle you're driving this will determine its clear rate group. The lower the rate group the lower your collision/comprehensive premiums will be. Copies of the clear rate groups are readily available, simply contact your broker.  [Top]

I sold my car several years ago and decided to walk to work so I wasn't listed on anyone's insurance and I did not have auto insurance in my own name. My driving record has been affected so my premium is higher.
An insurance driving record is similar to a credit history. If you don't have one its hard to get a loan. A driving history is the same idea, you have to prove your driving history and one of the ways to do this is by having auto insurance or make sure you are a listed driver on someone else's so you have a "record" of driving.   [Top]

General Questions

How is my auto insurance affected if I get caught for driving without any?
Recently the fine for driving without insurance was increased to $950, and results in an immediate suspension of your driver’s license. If you apply for vehicle insurance after having been caught, your insurance company will have to file a "Financial Responsibility Certificate" with the Department of Motor Vehicles on your behalf. This will result in your license being reinstated. You will have to check with your broker to determine how this conviction will affect your driver record with respect to a policy. (Please note: If you borrow someone else’s vehicle, check to make certain that it carries insurance. If it is not insured, you as the driver are fined - not the vehicle’s owner!)  [Top]

If I rent a car, do I have to purchase the insurance that the rental agency tries to sell me?
If you own a vehicle and have auto insurance in force carrying PLPD coverages, these coverages would be extended to a non-owned (i.e. rented) vehicle. Extra insurance doe not need to be purchased from the rental agency. However, damage to the rented vehicle itself would not automatically be covered. You can purchase from your own Broker a special policy endorsement called "SEF 27 - Legal Liability for damage to non-owned autos". The annual premium for this endorsement is minimal, and usually has a maximum limit of damage to the vehicle of $30,000. [Top]

Is my driving record affected if I cancel my auto insurance?
If you are without auto insurance for 6 months or longer, and not listed as a driver on someone else's auto policy, your driving record is affected. An insurance company requires some way of determining your driving history. If you have no history of auto insurance (or a lengthy lapse in coverage), then you will not be eligible for a preferred driving record, which will affect your premiums.   [Top]

I am taking my car out of the country... should I make any special arrangements with my insurance?
Yes; if you are taking your vehicle out of the country (specifically to the U.S.) for an extended period of time, contact your broker. Some insurance companies are now surcharging an auto premium for U.S. exposure.  [Top]

My neighbour has his car for sale, and I want to take it for a test drive. But there is no insurance on it... why can't I insure it for the day on my own policy?
You must have an "insurable interest" in a vehicle before you can insure it. In other words, you must be the registered owner.   [Top]

Does my vehicle insurance cover my cellular phone or VHF radio?
If you have comprehensive coverage, and the cellular or VHF are permanently attached to the vehicle, yes it would be covered.  [Top]

I just bought a car that was written off and it shows as a salvaged/rebuilt" vehicle on my registration. I'm having trouble getting auto insurance, how come?
The safety features on a vehicle play an important role in the rating of auto insurance premiums. If a vehicle was involved in a serious accident some of the safety components may have been compromised. Some insurance companies refuse to insure a salvaged vehicle altogether while others will accept an appraisers report stating that the vehicle is once again road worthy.   [Top]