We know that insurance is filled with complicated jargon and rules that don’t always seem to make sense. We believe in taking the mystery out of insurance and we strive to make getting insurance as simple and hassle-free as possible.
We can make it easier for you to understand and are happy to answer any of your questions and explain the coverage you should consider. Call us anytime at 1.800.272.5688.
Here are the answers to some of the most common questions people ask.
General
What is insurance?
Is the insurance industry regulated?
What do I do if I need to make a claim?
How do I set up a pre-authorized chequing payment?
Home Insurance
Why should I have home insurance?
Why should I buy tenant's insurance when I live in an apartment and don't
have many contents or valuables?
Auto Insurance
Why should I have auto insurance?
What are my choices in terms of auto coverage?
Are other drivers insured to drive my car?
What do collision and upset and comprehensive insurance cover?
What is a deductible?
How much auto insurance is enough?
I had an accident. What does it mean when my insurance company says I
am 'at fault' or 'not at fault'?
How do I reduce my auto insurance costs?
How do I know which auto coverage to choose?
General
What is insurance?
Insurance is a legal arrangement that protects you and your family in the event of a covered loss. It spreads the premiums of many to pay the losses of a few, allowing everyone to pay a predictable amount to protect themselves against catastrophic losses. It may enable you to replace income and / or valuable possessions quickly and without undue burden.
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Is the insurance industry regulated?
Yes. Each provincial government regulates the sale of insurance. The regulator's role is to ensure quality and fairness for you, the consumer.
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What do I do if I need to make a claim?
Just call 1.800.272.5688 if you are involved in an accident or suffer another kind of loss.
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How do I set up a pre-authorized chequing payment?
To take advantage of our monthly payment plan, all you need to do is give us your bank's transit and institution number, as well as your account number. Your payment will come out of your account automatically on the day of the month that you choose.
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Home Insurance
Why should I have home insurance?
Home insurance is just solid financial (and life) planning. Your home, whether it is a house, a condo or a rental home coupled with your personal belongings and contents, probably represents your largest financial investment. While the government doesn't require you to purchase home insurance, your mortgage-holder probably will — at least enough to cover its share of ownership. There are various kinds of home insurance that cover general and specific kinds of damage to your home and you should research your options carefully. You can also buy specialized insurance to cover a condominium, property you rent, home business or other kind of property or valuables found in your home.
Home insurance also includes liability coverage for people who are hurt on your property.
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Why should I buy tenant's insurance when I live in an apartment and don't have many contents or valuables?
Most people would be surprised at the value of their personal property if they were to add it up and have to replace it all immediately. Think about your furniture, clothing, and electronic equipment, and then try to put a price tag to it all. Also, if you've purchased items on credit and they are stolen or destroyed by fire, you could still have to make the payments. Tenant insurance also provides coverage for:
- Additional living expenses (if you had to live somewhere else due to an insured peril)
- Personal liability (if you unintentionally hurt someone or damage their property — or someone is hurt while at your apartment)
- Premises liability (if you unintentionally cause damage to the building)
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Auto Insurance
Why should I have auto insurance?
If you own a vehicle, the law says you must purchase coverages such as liability, accident benefits, direct compensation-property damage and uninsured motorist. You should also have adequate optional collision and upset coverage and comprehensive coverage to protect your investment in case of a loss.
- Liability — covers you for things like legal fees and the cost of settling the claims, up to the limit indicated on your certificate.
- Accident benefits — may provide benefits for medical costs, including rehabilitation, attendant care and more, disability income to cover lost wages, funeral expenses and death benefits for you, your spouse or dependants.
- Optional uninsured motorist — may cover you, and any other passengers in your vehicle, for injuries you sustain in an accident where the driver of the other car is not insured or is unknown (hit and run).
- Optional collision coverage may pay to repair your car if it is damaged in a crash or a roll over.
- Optional comprehensive coverage may pay for other forms of damage like fire, theft and vandalism.
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What are my choices in terms of auto coverage?
If you own or drive a vehicle in Canada, you must be insured. Different provinces and territories have different requirements, but the three mandatory elements of auto insurance are:
- Liability — if you cause an accident and someone sues you
- Accident benefits — if you or someone in your vehicle is hurt in an accident
- Uninsured Motorist — if you're in an accident with an uninsured or hit-and-run
driver
In addition — depending on the age of your car and your personal preferences — you can choose to protect yourself further by adding optional loss or damage coverages that would protect you when you're not covered by direct compensation-property damage:
- Specified perils — covers the cost to repair or replace your vehicle if it's damaged by specific things like fire, theft and lightning. The complete list of conditions is in your certificate.
- Comprehensive — covers the same as specified perils plus vandalism, falling or flying objects and other things The complete list of conditions is in your certificate.
- Collision — covers the cost to repair or replace your vehicle if it's involved in a crash (with a car or other object) or it tips over.
- All perils — combines collision, comprehensive and more. This is the broadest optional loss or damage coverage you can get through us.
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Are other drivers insured to drive my car?
Yes, as long as he / she has your permission to drive the vehicle and has a valid driver's licence. However, all licensed drivers in your household must be listed on your policy, regardless of how often they use your vehicle.
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What do collision and upset and comprehensive insurance cover?
Collision and upset insurance covers any damage to your vehicle caused by impact with another vehicle or object, for example a guard-rail, or any damage caused by your car rolling over.
Comprehensive insurance covers other losses, for example due to fire, theft or vandalism.
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What is a deductible?
A deductible is your share of the amount that needs to be paid to cover the repair or replacement of your vehicle. This amount is typically deducted from the amount of a claim.
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How much auto insurance is enough?
Auto insurance is a regulated product. You must have the minimum amount of coverage that is mandated by your provincial or territorial government. This minimum coverage may change over time. For the most up to date minimum coverage, check out your province's or territory’s Web site.
If you find yourself in an accident where you need extra coverage on top of the minimum amounts required, then you are responsible for the shortfall. For example, if you are in an accident in which you damage someone's property and they successfully claim $500,000 in damages, but your policy only covers you for a maximum of $200,000 in damages, then you are responsible for the additional $300,000. For this reason, many drivers select coverage that is higher than the mandated minimum.
You are not required by law to purchase insurance to cover damages to your automobile. But, if you have a newer automobile, you may want to protect your investment with collision and upset and / or comprehensive coverage. If you are leasing or financing your automobile, the leasing company or bank will require that you insure your automobile for collision and comprehensive coverage. They will not release the funds to purchase the automobile until you commit to that coverage.
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I had an accident. What does it mean when my insurance company says I am "at fault"
or "not at fault"?
If you are involved in a car accident and your car is damaged, your insurance company is required by law to assign the percentage of fault to each of the drivers involved in the accident. If you are in an accident and yours is the only car involved, your insurance company will most likely consider it an "at fault" accident (100% at fault). It is possible to be in an accident and be considered "not at fault" (0% at fault) or even "partially at fault" (50% at fault).
Fault is determined using the fault determination rules set out by your province or territory and all insurance companies have to use the same rules. They are designed to help insurance companies deal with accident claims quickly and economically.
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How do I reduce my auto insurance costs?
There are several things you can do to reduce your insurance premium costs:
- Work on your driving record — An easy and effective way to bring down your insurance costs is to build a consistent accident and conviction-free track record with an insurance company.
- Choose your automobile wisely — Do your research before you invest in a new car. Read consumer reports and check with your insurance company to find out which cars tend to be targets for theft and vandalism. Remember, if you buy a car with a high theft rate, your premium will be higher.
- Adjust how you use your car — By adjusting the way you use your vehicle, you can also bring down the cost of your insurance rates. If you live in a metropolitan area:
- Can you take public transit to work?
- Has your job changed, or have you moved recently?
- Do you use your automobile to drive a short distance to work?
- Do you maintain low annual kilometers?
If you answered yes to any of these questions, you may be able to reduce your insurance costs. Another consideration is whether you let others use your car during the day. It is sometimes possible to exclude certain high-risk drivers from your policy so that good drivers are not penalized with a higher premium.
- Review your coverage — Take a close look at your coverage limits and deductibles. Consider getting a higher deductible for optional collision or comprehensive coverages. If you have an old car, you may consider not having these coverages if the increase in premium is high compared to the value of the car.
- Take advantage of discounts — Review your auto policy on an annual basis to take advantage of discounts as they become available to you.
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How do I know which auto coverage to choose?
We'll make sure your online quote includes all the mandatory coverages legally required in your province or territory. You can select optional coverages based on your individual needs. You can always refer to your existing auto policy for some hints. Also, you'll want to confirm your choices with us when you purchase your policy.
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