What's New
Excluded Driver
Thu, Nov 3, 2011
Wouldn’t it be great if we could prevent high-risk drivers from operating insured vehicles? Wait, yes we can... it’s known as the “excluded driver” endorsement, as outlined by the
OntarioInsuranceAct. The endorsement has the harsh result of denying coverage under an automobile policy, so it’s worth knowing about and taking seriously.
The endorsement does not mean that you or the excluded driver are not responsible for the damages and/or injury resulting from an accident in which this excluded driver is at fault. If you have an excluded driver in your household, know that you can be held personally liable if this happens to him/her. Some cases where ‘excluded driver’ would apply:
● Multiple vehicle citations
● Several at-fault accidents
● Suspended license
● DWI conviction
● Impaired mental capacity, etc.
So, why would you name someone in your household as an “excluded driver”? Simple: money talks; a named driver exclusion lets you continue to be insured at the discount afforded to persons with clean driving records. Translation: The bad habits of your reckless son/daughter behind the wheel won’t raise your own premium.
Did you know that the offering of an excluded driver endorsement by the insurance company, or your broker, is mandatory? Your broker will deliver a copy of the policy to you, along with a copy of each and every endorsement even after policy amendments are made. And it is imperative that you sign the driver exclusion endorsement - in order for the courts to deem it valid.
In a 2009 Ontario court case, a vehicle owner had signed an excluded driver endorsement with respect to his son, but by mistake he only listed one of his insured cars on the endorsement and the son was driving another of the insured vehicles when an accident occurred. The father did not understand that the excluded driver endorsement also precluded third-party liability claims made against him as owner of the vehicle.
“Excluded driver” is one of those cases where you really need an informed and unbiased insurance broker in your corner, to help explain this complex regulation and its serious legal implications.
Deductibles
Thu, Nov 3, 2011
Why Would you Pay a Higher Deductible?
OR
Pay More, Save More
A deductible is the amount of money that comes out of your wallet before your insurance company pays anything on your claim. As you probably are aware, there are two ways to go:
1. Lower deductible, higher premiums each month
2. Higher deductible, lower premiums each month
You may be thinking Door #1 please; who wants to put out a big wad of cash should you get into a car accident, or your home is damaged badly? But not so quick...
Paying a higher deductible is a good way to save money on the ongoing cost of your insurance premium. One Canadian study found that policyholders who switch from a $500 deductible to a $1,000 deductible could save between 5% and 10% in premiums.
For the insurance company, they see real value in a client who is motivated to carry a higher deductible; it means that you are more likely to cover off small incidents yourself. That way, the insurance company doesn’t get flooded with a ton of claims from you throughout the year.
As well, insurance companies tend to feel that when you are “self-insuring” small losses, you will have a greater incentive to apply loss prevention techniques. For example, you are more likely, with a higher deductible policy, to install a burglar alarm or smoke alarms.
Not to mention that many of us, the biggest monetary concern tens to be what comes out of your bank account on a regular basis (such as insurance premiums), those ongoing costs that must be balanced with the household budget and family needs.
Financially, it could make the most sense to take the largest deductible you can realistically pay in the event of a loss; talk to us about different scenarios.
Welcome
Mon, Jun 20, 2011
Welcome to our What's New section.