Questions And Answers

You should let your insurance company know about all drivers in your household, including newly licensed drivers with a G1 license. Most companies do not start charging for new drivers until they have graduated to their G2 license.

There are many factors that go into the calculation of your premium:

• The general premise of insurance is that the claims of a few are shared among the many. The more your insurer pays out in total claims, the more likely your rates will increase.
• Have you been in an at-fault collision within the past year? A recent at-fault collision could cause your rate to increase. Insurance companies reward drivers with lower rates based on the number of years accident-free.
• Have you had any tickets within the past year? One ticket can affect your rate, and more severe tickets have costlier consequences. Statistics show that a person with tickets has a higher probability of being in an accident than a person with none.
• Cars are becoming more expensive to repair as they become equipped with advanced collision avoidance systems. It's often not just a matter of repairing a dent; usually, the whole bumper needs to be replaced, translating into higher rental car costs. If the airbag goes off, that can be very expensive!
• Distracted driving accidents have been on the rise and tend to be more severe. Higher frequency and severity translate into higher premiums.
• Fraud, the four-letter dirty word in insurance, continues to be a problem in Ontario and has been reported to account for about $1.6 billion in additional costs.

Yes, you can switch your car insurance coverage at any time. If your claim is ongoing, your old insurer will continue to handle it. If the accident is deemed to be at fault, you may find that you won’t save any money by moving to another company, as they will rate for that accident while your current insurer may “forgive” it.

One of the rating factors that insurance companies use is territory. The closer you live to a major populated area, the higher the cost. Cities usually have more congestion, cars, and accidents, translating into higher claims costs. This higher claims cost is passed along to residents. Computer algorithms allow insurers to define smaller territories, so you can literally move across the road and be charged a different rate.

The answer is maybe. Some credit card companies provide limited protection for their cardholders when renting a car. In Ontario, you can purchase an endorsement for your current car insurance policy called the OPCF 27: Liability for Damage to Non-owned Automobiles.

If you don’t have coverage through your credit card and don’t have your own car insurance policy, you will want to purchase coverage from the car rental company.

How does the OPCF 27 work?

• It provides coverage for vehicles you don’t own, such as rental cars.
• The deductibles and coverage match those on your policy for collision, comprehensive, and all perils.
• Coverage is based on Actual Cash Value, in Canadian funds, and could be subject to a maximum limit.
• The rental contract must be in writing and for less than 30 days.
• Only listed drivers on the policy are covered.
• The vehicle must be under 4500 kilograms of Gross Vehicle Weight.
• The rental usage must be within the territory boundaries of Canada and the United States of America.

Rental car companies offer a “Collision Damage Waiver” that you may purchase. This waiver states that the rental car company will waive their right to seek payment for any damage to the car, provided you haven’t violated any terms or conditions of the rental agreement. Although this is typically more expensive than adding an OPCF 27 to your own policy, it protects you from having an at-fault accident rated on your own car insurance policy.

Travel trailers do not require insurance but can be added to the car insurance policy with the same coverage as the tow vehicle, including liability, comprehensive, and collision coverage. The contents of the trailer are not included and are usually covered through your property insurance policy.

There are specialty travel trailer policies that offer broader coverage and higher contents coverage, which can be part of a homeowner's or renter’s insurance policy or a car insurance policy.

Truck campers, pop-up trailers, and similar vehicles that are not drivable on their own but rely on a truck or other vehicle to tow or carry them are insured similarly to a travel trailer by adding them to your car insurance.

An RV (motor home) is considered a vehicle as it can be driven independently. Therefore, insurance coverage comes from a car insurance policy, either on its own or by adding it to an existing policy. The coverages available are the same as if it were a car. Some insurance companies also have specialized endorsements providing further coverage for emergencies, contents, and additional living expenses. There are three classes of motor homes: A, B, and C. The rate you pay will depend on these classes, as well as how much you use it, whether it serves as your full-time home, and several other factors.

If the damage to the roof is caused by an insured peril, then it's covered. An example of this would be a tree falling on the roof, lightning strike, or wind damage. Most policies will reimburse for the full cost to repair or replace the damaged section of the roof. This does not necessarily mean the entire roof. Some policies will only reimburse for the depreciated value of the damaged roof.

If the roof is starting to leak because it's old and wearing out, then it's not covered as this is a maintenance issue. Homeowners policies do not cover losses caused by wear and tear. It's important to check with your own insurance provider to see how your own policy will respond.

The answer to this question varies from one insurer to the next and a person's individual situation. Some companies will allow one claim within five years without changing their rate. Other companies provide a claims protection endorsement which will protect against a premium increase upon the first claim. Having more than one claim within five years can cause a significant increase in cost. Many companies provide a no claims discount on their policies, and it is the loss of this discount which can cause an increase in premium upon making a claim.

No one wants their dog to bite another person, but it does happen. This is where your personal liability coverage comes into play. Your personal liability coverage provides protection for situations where you are negligently responsible for bodily injury or property damage to another person.

Absolutely, without a doubt. Sewer backup coverage provides protection against damage caused by the backup of a drain or sump pump. This can be the result of a sudden storm or an aging sewer system. Many sewer backup claims can run between $30,000 to $50,000 in damage. Emergency cleanup alone can be very expensive. Don’t think that not having a finished basement means you're not concerned. Think again. Sewer backup to an unfinished basement can still damage the furnace and hot water tank that are normally located in the basement. We had a policyholder who was away from their house for a week while the backup took place. The moisture from the backup seeped into the upper floors causing damage to the walls, ceilings, and floors of the entire house.

Contractors insurance is generally made up of two main components: property coverage for the contractor's tools, equipment, and supplies, and commercial general liability (CGL) coverage, which protects the contractor against the cost of lawsuits resulting from their negligence in causing bodily injury or property damage. What it doesn’t cover is the contractor's own faulty work. The CGL specifically contains an exclusion excluding damage to the contractor's own property, product, or work, or that particular part of real property that the contractor or subcontractors are working on. For example, if a contractor is building a wall and that wall collapses, there is no coverage for the wall. If the falling wall damages another person’s property, such as a car, then damage to the car is covered. Another example would be where a roofer improperly installs a roof, causing the roof to leak and damage to the inside of the building. The damage to the inside of the building is covered, but not the roof itself.

Many Commercial General Liability policies provide protection from any liability arising from subcontractors. However, others may include an exclusion for independent contractors, which means if anything goes wrong due to their work, your policy may not cover that loss. Even if your policy covers subcontractors, it’s good business practice to make sure that they have their own insurance. That way, they are responsible for any losses they cause and will have it covered under their own policy, not yours. The fewer losses on your policy will help keep your policy intact and the premium lower. Also, many insurers are now making this a requirement.

It is also highly recommended to be added to the subcontractor's policy as an "additional insured" and ask for a certificate of insurance. By being added as an “additional insured”, if you happen to be named in a lawsuit resulting from the contractor's work, their policy will provide you with protection according to the limits and conditions of their policy.

A certificate of insurance is a standard document used as evidence that a certain type of insurance is in force. It will provide specific policy information such as the insurance company's name, policy number, expiry date, types, and limits of coverage. It also includes a 30-day notice of cancellation to the certificate holder if the policy happens to be cancelled during the current policy term.