Hi Friends,
Spring is around the corner and this is the time when more and more people buy cars and they HAVE to get the Auto Insurance. For all our newly landed and prospective Canadian Desis, I am hereby posting some BASIC fundamentals of Auto Insurance. Hope, it will be beneficial for all. I will keep on adding more stuff!

GG,BL, I did not find any folder with the name 'Auto Insurance', so I am posting this under General Chat. If need be, please remove my posting from here and let me know so that in future, I'll put all Auto Insurance related inforation in that folder only.

INSURANCE FAQs
What is insurance?
Insurance is a legal arrangement that protects you and your family in the event of a covered loss. It may enable you to replace income and/or valuable possessions quickly and without undue burden.
What types of insurance are available?
Various types of insurance such as auto, home, life, disability, critical illness, health, long-term care, travel and pet insurance are available on the market for consumers to purchase.
What are my choices in terms of auto coverage?
If you own or drive a vehicle in Canada, you must be insured. Different provinces have different requirements, but the four mandatory elements of auto insurance in Ontario are:
1. liability - if you cause an accident and someone sues you
2. accident benefits - if you or someone in your vehicle is hurt in an accident
3. direct compensation – property damage - if your vehicle gets damaged (and it’s determined you’re not at-fault or only partly at-fault)
4. 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 or upset – 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 or upset, comprehensive and more. This is the broadest optional loss or damage coverage you can get.
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.
Your province's insurance regulators may have a website with valuable information about what you can expect from the insurance industry in your province.
For example, in Ontario, the Financial Services Commission of Ontario (FSCO) - integrates the operations of the former Ontario Insurance Commission and performs regulatory activities governing insurance.

Why should I have auto insurance?
If you own a vehicle, by law in Canada, you must have the mandatory 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 property in case of 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.
· direct compensation – property damage - may cover the cost to repair or replace your vehicle and any property inside it, and may provide you with a rental car, if you’re in an accident that isn’t your fault or is partly your fault,
· uninsured motorist - may cover you and any other passengers in your vehicle for injuries. It may also cover damage to your vehicle by a driver who doesn’t have insurance, or a hit-and-run driver. You can only make a claim under this coverage if the other vehicle and/or driver can be identified. (If the driver or vehicle can’t be identified, this coverage doesn’t apply but there still may be benefits for injuries and/or collision under other parts of your policy.)
· Optional collision and upset 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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Sanjeev Manocha, MBA
Real Estate Sales Representative
Accredited Buyer Representative (ABR)

Re/Max West Realty Inc, Brokerage
96, Rexdale Blvd., Toronto

Mobile: 416-843-7600
Office: 416-745-2300
http://www.manocharealty.com" rel="nofollow">LINK

Hi,

I came to canada in 2002 may. GotG2 in october 2002 . Bought car 1997 toyota carolla. Paying insurance premium 300$ per month..

Unfortunately had car hit parking pillar and did claim worth 4000dollar. (In dec2002)

Poicy was reviewed in 2003 december last year to 450$ per month.

Is there any way to reduce it even I am ready to let go complete coverage.

thanks,

Jarni

Good info Sanjeev, one question tho ....what is this insurance certificate thing ...i am told that if one gives insurance certificate the rates go down ...is it true.? what is it do you know?

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What can be imagined, can be achieved.

There is something called 'Graduated Licensing' process in Ontario meaning that you are graduating from G1 level to G2 level to G level. e.g. a Canada born person who completed his 16 years in January 2003 may go to Ministry of Transportation of Ontario (MTO) office and take written test for G1. Now, he will have to wait for 12 months before he actually takes his G2 test (on road) but if he completes his Defensive Driver Training Certificate from some MTO approved school, his waiting period is reduced from 12 months to 8 months and after 8 months, he taks his G2 license. Now he has 5 years for taking his G license. So assuming he took G1 in January 2003, completed DTC (Driver Training certificate) in June 2003 and took G2 in September 2003, for his insurance he is eligible for Graduated Lic Discount as well Driver Training Certificate discount, so his premium will come down but in order to achieve that, he waited for minimum 8 months.
Now another scenario: Mr. Smith came from India in January 2003, had Indian license since 1990, showed it to MTO and he got approval that he can appear for G2 or G test anyday after taking G1 license and just after getting his G1, he went for G license and got it. Now if he goes for the insurance, he is not eligible for Grad Lic discount because he did not graduated from G1 to G2 to G in the specified time period, though he can start driving the car in the first week of landing.
As regards to DTC discount, as I had mentioned earlier too, every company has its own underwriting guidelines. It all depends from company to company if they give you the DTC disc. when you are a G driver. For a G2 driver, yes, they may give you discount.
So, what I am trying to say is that it is not necessary that even if you do Driver Traing certificate, your premium will come down because it would depend on so many factors like your lic. class, no. of years you have been licensed for, your driving record, the underwriting guidelines of the company....etc. You may need to check with your broker or with the insurance company.

AS PER THE MINISTRY OF TRANSPORATION: DRIVING IN CANADA IS NOT YOUR RIGHT, IT IS A PRIVILEGE!

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Sanjeev Manocha, MBA
Real Estate Sales Representative
Accredited Buyer Representative (ABR)

Re/Max West Realty Inc, Brokerage
96, Rexdale Blvd., Toronto

Mobile: 416-843-7600
Office: 416-745-2300
http://www.manocharealty.com" rel="nofollow">LINK

hi sanjeev. i got my G2 in september 2003. and no ticket no accident.
i have certificate too.
can u give me aproximately price for my insurance for chev. cavalier 93?

http://www.kanetix.com/

will give you a fairly good idea as to what you can expect in terms of premiums... i have found it to be pretty accurate but you will still need to shop around...

Hi Sanjeev,

your aticle was very informative and interesting as well. THANKS for sharing the info. If you don't mind, I would just like to ask you a Q. Suppose I have only liabilty and comprehensive coverage, no collission damage coverage. And suppose I am involved in an accident wch is completely a fault on part of the other driver. Can I file a claim for damages to my car ? If YES, is it my insurance co. who pays me and collects from other driver's insurance co. ?

Your reply will be highly appreciated.

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