Auto-Insurance Tips

Do you know your Insurance?

Have ....Y-O-U... Read Your Insurance Policy? 1/3 of drivers have never read their car insurance policy, according to a poll done for the Insurance Bureau of Canada. Of those polled only about ½ of the people could only explain 3 basic terms:....claim....deductible..and premiums. For most people, automobile insurance is a mystery. They don’t understand it until something happens directly to them! Your car is one of the most valuable assets. But, it is also one of the most..dangerous. Dangerous in terms of the harm it can cause (when there’s an accident) to your financial security, as well as, the physical and emotional damage to your self and loved ones. People are often confused when they are told they are " at fault" or "partially at fault" in a vehicle accident. "I thought Ontario had no-fault insurance!" How can I be at fault! The "no-fault" concept applies only to bodily injuries suffered by the drivers or passengers in the car accident. Benefits would be paid by the insurance company no matter who caused the accident. However, the damage to your automobile is assigned fault to one or other of the drivers even though you make your claim against your own company. And that’s not all! Drivers may share a percentage of the blame or fault. Rules have been established by the government to assign percentages in some circumstances. The "Fault Determination Rules" are not related to any charges laid by the police. Its important that you read and understand the coverage that your carry on your insurance. If you don’t understand then call your broker and have all your questions answered. Know your rights..... And know your obligations. Don’t have any surprises when you have a claim! Read.....your policy and ask questions!.Understand it!

Do You Know Your Optional Benefits?

You may purchase a variety of optional accident benefits (Ontario, Canada) which build on the basic accident benefits levels. These optional benefits follow You, the insured, rather than the insured vehicle.

Income Replacement

Your basic policy provides up to $400/week (after 7 day wait) for an injury resulting from an automobile accident which prevents you from working at your usual occupation. This benefit is based on 80% of net income. You may increase this to limits of $600, $800, or $1,000/week .

Death & Funeral Benefits

Your basic policy provides $25,000 death benefits to a surviving spouse and $10,000 to each surviving dependent. You may increase this to $50,000 death benefit to a surviving spouse and $20,000 to each surviving dependent. Your basic policy provides $6,000 funeral benefit. You may increase this to $8,000

Medical, Rehabilitation & Attendant Care Benefits

Your basic policy provides up to $1,000,000 for catastrophic injuries (e.g. serious brain injury) and $100,000 for non catastrophic injuries for medical and rehabilitation expenses (in addition to those covered by O.H.I.P.). Your policy also provides up to $1,000,000 for catastrophic injuries for attendant care expenses (up to $6,000/month) and $72,000 for non catastrophic injuries (up to $3,000/month). You may increase this benefit by $1,000,000 beyond the basic limits.

Caregiver & Dependent Care Benefits

Your basic policy provides benefits for caregivers who are unpaid (e.g. stay-at-home parents) who are basically unable to engage in caregiving after an automobile accident. You may be reimbursed for expenses up to $250/week, plus $50/week for each additional dependent. You may increase this to

$325/week, $75/week for each additional dependent. In addition, this option provides a dependent care benefit to cover the expenses incurred by employed persons to replace the care which you have been providing to your dependents. This benefit is up to $75/week for one dependent and $25/week for each additional dependent to a maximum of $150/week.

Indexation

You may purchase an additional option to index your benefits to the cost of living. (If the cost of living goes up from the time of the accident, the benefits and limits do likewise).

Please note-------innocent victims of vehicle accidents may sue an "at fault" party for pain and suffering, and loss of income and future earnings when the accident benefits under your own policy are insufficient. Please consult your broker for the extra cost for optional benefits coverage. In addition, it would be wise to check to see if your employer has benefits provided as part of employment and what benefits you would receive. This allows you the ability to protect yourself and your family by assessing the overall situation and making a wise decision.