Adapting your auto insurance needs

Auto insurance is a legal requirement. It is primarily intended to protect third parties against the damage caused by the driver. How to build a suitable contract? Here are the questions to ask to not forget anything.

What use the vehicle?

Auto insurance ensures that risks which it is aware. So if your contract states that you are the only authorized driver to use your car, take it could have serious consequences in case of disaster, your insurer could refuse to compensate the victims, or against you. therefore carefully define not only the drivers likely to use your car, but also special cases such as towing a trailer for example.

What level of vehicle protection?

The extent of coverage of auto insurance is vast: it goes the broken glass replacement to the replacement value. The options and deductibles and deductions determine the amount you will be responsible for repair or replacement. Remember guarantees annexes such as the loan of a vehicle during the repair time.

Note: the repurchase of franchises can significantly increase your contribution. You can also choose to be in place precautionary savings, sometimes less expensive in the long run

What level of driver protection?

Your auto insurance does not normally cover damage you might suffer yourself. This requires purchase a personal guarantee of the driver, which will cover you in case of fault accident. However, make sure it does not duplicate with a guarantee already subscribed otherwise, such as the group benefits underwritten by your employer.

Namely: your multi-risk home insurance generally includes an option "defense and legal remedies," check if it includes cases from cars.

When to change auto insurance policy?

This is usually on the occasion of the purchase of a vehicle that the question arises. However, you can of course change the contract at will, provided they respect the notice period of your car insurance is up to two months.

Drinking while driving and insurance

Do not drive if you drink alcohol. This is a clear and precise message. Drinking and driving kills. Everyone knows why it should not drive under the influence of alcohol or drugs and the penalties provided by law. Nevertheless, most people do not know the consequences of drinking and driving on their car insurance.

Property damage
Individual Insurance (Ontario)
Increased insurance premiums
Altogether

Property damage

If you drive your vehicle under illegal circumstances, your insurance is no longer valid. In other words, if you drive drunk and have an accident, in addition to suffering the penalties imposed by law, you are potentially liable for damage to your vehicle or that of third parties.

Individual Insurance (Ontario)

Remember individual insurance if, unfortunately, you hurt someone. The insurer will pay the injured person for medical expenses needed immediately and then you continue to get compensation. Requests for compensation for personal injury, however slight, can easily cost millions of dollars.

Increased insurance premiums

You were arrested for driving while intoxicated, you paid your fine, you're fired without accident, but it is now time to renew your policy. You will suffer the consequences of DWI (driving while impaired) for many years.
Your driving record is automatically deleted after a DUI charge and you must start over and win the trust of an insurance company. Consequently, your premium can double or triple in the first year after the offense and stay higher than normal for at least 6-10 years following. This can add up to thousands of dollars over the years.

Altogether

Drinking and driving can cost you dearly, but it's nothing compared to the suffering that you may cause. If you drink alcohol, do you find a designated driver.

The consequences of an accident on your insurance premium

All drivers, even the most experienced, can have bad luck on the road. Whether you hit a speed bump or other vehicle, an accident, by definition, is never intentional. But unintentional does not mean "not responsible." So that in some circumstances collisions may increase your insurance premium.

               It takes a responsible
                    If you are responsible
                    Your insurance company can help you


 It takes a responsible :

In the eyes of insurance companies, there is always a manager at an automobile accident, even if there is nothing you could have done to prevent it and if the officer determines that you have committed no crime.
If you are the only driver involved in the accident, you will automatically charge when you make your claim with your insurance company.
If you are involved in a collision with another car, the liability issue is complicated. If you call a policeman, he can usually determine who is responsible according to the Highway Code in force locally. Sometimes the driver's responsibility is clear.
If you hit the back of a car, you are responsible.
If changing lanes and have a side collision with a car that was in your blind spot, you are responsible.
In some cases, it will take the police or the insurer makes an investigation to determine who is actually responsible for the accident.

Anyway, if you are liable for an accident, it may increase your car insurance premium.

 If you are responsible :

If you have an at-fault accident, it will remain on your file 6 to 10 years. This means that your insurance premium may increase and therefore you may have to pay for this accident for years, in fact until it is deleted from your file; your premium will begin to decline.

The accident could be forgiven (but not necessarily "forgotten")

Most insurance companies offer a "forgiveness clause" to their clients.
Forgiven - If you are insured with the same company for some time and that your driving record is impeccable (you have had no accidents or tickets), then you may be eligible for the clause that requires your first at-fault accident be "forgiven." This means that your premium would increase only slightly.

But not forgotten - If you have another accident, get ready to pay the price.

Your insurance company can help you :

Even if an accident causes an increase in your premium, your insurance company can help you to ensure that it remains affordable. Inquire about discounts you may qualify and clever ways to reduce your premium.