Car Insurance Rates for Drivers Under 25

Young drivers, especially those below the age of 25, often struggle to find affordable car insurance coverage. Premiums tend to be highest for this age group owing to a lack of driving experience. This leads many young drivers to wonder, “is it possible to find good auto insurance if I’m under 25?”

The answer is yes, though it can be more difficult given your age. Thankfully, age doesn’t impact the types of coverage available to you, only the price you will pay for such coverage.

How does age impact car insurance premiums in Canada?

The reality is that age is one of the most prominent factors used to calculate insurance rates in Canada. Insurance companies see a direct correlation between age and risk level. As a new driver, you have little to no driving experience, which means your odds of getting into an accident might be greater. As such, you are a bigger liability, which is why insurance companies raise your rates.

Though it might not seem fair, the Canadian Humans Rights Commission permits insurance companies to use the variables of age, sex, and marital status to calculate insurance premiums.

Do car insurance rates drop after age 25?

The good news is that car insurance rates tend to drop after age 25. That said, your specific premium will depend on a variety of factors beyond age, including claims history, driving record, location, and more.

What variables determine car insurance premiums for drivers under 25?

As mentioned, age is just one variable that determines car insurance premiums for drivers under 25. Insurance companies take many other factors into account when calculating risk. Young drivers might find it helpful to understand exactly which factors – some of which are within your control and some of which aren’t – matter to insurance companies.

Below is a list of some of the most important factors affecting the cost of premiums in Canada.

Driving history

One of the most important factors used to calculate insurance premiums, aside from age, is one’s driving history. This is a combination of a driver’s experience and record. Having ample driving experience is usually a positive attribute. Rather, it is a lack of driving experience that raises the insurance premiums for young drivers. However, years of driving experience will only work to your advantage if it is coupled with a clean driving record.

If you drive the speed limit and obey the rules of the road, you are likely to have a clean driving record, and the insurance company may reward you accordingly. But if you frequently speed, drive recklessly, or drive under the influence of drugs or alcohol, your driving record may be poor, and your insurance premium will likely be higher.

Gender

Like age, gender is another variable out of one’s control that insurance companies use to determine car insurance rates. If you’re wondering why insurers base their rates, in part, on gender, it’s because research indicates that drivers of one gender are more likely to be involved in collisions. In particular, deaths due to transport-related incidents are disproportionately male. Further, Statistics Canada reveals that male drivers are more likely to drive under the influence of drugs or alcohol than females and more likely to commit traffic infractions, such as reckless driving and driving while prohibited.

Location

Location is another factor that can impact your young driver’s car insurance rate. Where you drive your car can affect how much you pay for insurance. Young drivers who live in populous metropolitan areas such as Toronto are more likely to get into accidents due to the increase in traffic, and as such, tend to pay more for car insurance. In contrast, drivers who live in rural parts of the country where there are fewer cars on the road are considered less likely to get into an accident and may benefit from a reduced premium.

Vehicle make, model, and year

The make, model, and year of the car you drive may also impact your premium. Typically, newer, more expensive cars cost more to insure since they would cost more to replace or repair in the event of an accident or theft. The exception to this rule is if your car is equipped with anti-theft devices or other safety features, such as security systems. In contrast, older, used, or budget-friendly cars usually cost less to insure.

How frequently you drive your vehicle

How much time you spend on the road is another factor that can influence your car insurance rate as a young driver in Canada. If you drive an above-average amount of time (perhaps you drive for your job or have a long commute to work), or you frequently drive at night or on major highways, the insurance provider may raise your premium. On the other hand, if you are an occasional driver who only drives on weekends or to university a couple of teams each week, your chances of getting into an accident go down and so might your insurance rates.

Marital status

Finally, a driver’s marital status can impact their car insurance rate. Data suggests that married people are more responsible and financially stable, which insurance companies may take into consideration when calculating insurance costs. If you are under 25 and married, be sure to mention this to your insurance company.

Save money on car insurance for under 25 with BrokerLink’s top tips and tricks

There’s no denying that car insurance can be expensive for young drivers. In fact, car insurance rates for drivers under 25 are typically the highest in Canada. Thankfully, there are a few things you can do to minimize how much you spend on car insurance.

Beyond partnering with a trusted brokerage like DPM Insurance Group (BrokerLink) who can help you find the best coverage at the best rate, there are several other ways to save money on your auto insurance policy. Our expert insurance advisors have compiled a list of their top tips for saving money on car insurance for drivers under 25.

Maintain good grades

If you are currently enrolled at an education institution, whether a high school, college, or university, maintaining good grades may reduce your premium. Some insurance companies in Canada offer discounts to full-time students with high grades.

Research alumni discounts

Did you recently graduate from a post-secondary institution in Canada? Then you may be eligible for a preferred auto insurance rate thanks to your alma mater.

Some insurance companies offer discounts to alumni of certain institutions, so do some research or ask a BrokerLink insurance advisor to research this for you.

Maintain a high credit score

Building and maintaining a high credit score is one way to save money on car insurance for young drivers. Specifically, young drivers in Quebec and Alberta may benefit from an insurance discount if they have good credit scores.

Choose the right coverage

Choosing the right coverage – and coverage limits – is crucial to minimizing how much you spend on car insurance. Auto insurance for drivers under 25 is already expensive, don’t make it more expensive by purchasing unnecessary coverage. Young drivers should ideally make sure they have liability limits that cover their total net worth. Further, comprehensive and collision coverage (both optional types of coverage) may not be worthwhile depending on the value of the vehicle you drive.

Increase your deductible

Reduce your insurance premium by increasing your deductible. Doing so will reduce how much you pay for almost any type of insurance. The average car insurance deductible in Canada is $500. By raising your deductible to $1,000 or more, you could save money on your auto insurance policy. That said, increasing your deductible has both pros and cons. If you are considering raising your policy deductible, speak with a BrokerLink insurance advisor who can inform you of the possible consequences of doing so.

Choose annual over monthly payments

If you can afford to pay for your car insurance policy annually, doing so can save you money. Monthly or quarterly installment payments usually come with administrative fees that ultimately make it cheaper to pay on time upfront.

Install winter tires on your car

Canadian winters are world-renowned. Known for freezing temperatures, snow, and ice, driving in the winter is infinitely more dangerous than driving in the summer in Canada. For this reason, insurance companies offer discounts to drivers who install winter tires on their cars. Snow tires are known for having superior capabilities like traction in winter weather. Therefore, when you equip your vehicle with them, you significantly reduce the odds of getting into an accident.

Enroll in driving school

Enrolling in an approved driving school in Canada is another money-saving tip for young drivers. Insurance companies know that formal driving schools produce skilled, safe drivers who are more likely to follow the rules of the road.

Outfit your car with safety devices

Equipping a vehicle with safety features is one final way to save money on car insurance. Outfitting your car with anti-theft devices or a security system decreases the odds it will be stolen. Insurance companies acknowledge this and may reduce your premium accordingly. Therefore, adding safety devices to your vehicle, especially if it’s valuable, can be worthwhile for drivers under 25.

Contact us for a quote

At DPM insurance Group (Brokerlink) we never want auto insurance to break the bank, and we know how expensive it can be for drivers under 25. For this reason, we always make it our mission to find affordable auto insurance rates for young drivers. When you partner with us, we will unlock discounts on your behalf and let you in on the industry’s best-kept secrets for saving money on car insurance. Plus, we do all the work for you.

If you’re a young driver in the market for car insurance, contact DPM Insurance group (Brokerlink) today. Find the office most convenient for you by clicking here: https://dpmins.com/locations/

 

 

How is your auto insurance premium affected when your child goes away to school?

Well, the kids have all headed back to school by this point, and that means university students will soon be leaving the nest (and maybe even a car) behind. If your child is going away to school and is listed on your auto insurance policy, it’s time to give your broker a call. It’s likely to lead to a lower auto insurance rate, so it’s a call worth making.

Student discounts help parents save

Many auto insurance companies offer discounts designed to help parents keep a lid on the cost of auto insurance, and there are three discounts worth exploring:

  • Student-away-from-home-discount: If your college-bound child will be attending school in another city or province, their time behind the wheel will be limited to holidays, school breaks, and the occasional trip home for the weekend. Many insurance providers offer a discount for listing them on your policy.
  • Good student discount: As the proud parent of a college or university student, keep in mind that their good grades are worth bragging about – especially since it may result in a lower premium.
  • Driver’s training discount: If your child is on their way to becoming a full licensed driver, it might be worth adding one more class to their schedule – a driver’s training course. You could save hundreds of dollars each year on your premium, for typically up to three years, after your child has successfully passed the course.

Are you sending your child off to school with the car?

If your child is taking one of your cars to school, or you’re planning on buying them one to get around campus (and to classes on time), a call to your auto insurance provider should still be in the books. If the vehicle is in your name, you can list it on your existing auto insurance policy to take advantage of multi-vehicle discounts.

However, taking a car to school full-time may turn out to be costly, even with the discount. Since your young driver will no longer be an occasional driver, they’ll need to be listed as the primary driver to ensure the policy accurately reflects who is driving the vehicle most often. Otherwise, you risk jeopardizing the coverage they’ll need, should there be a reason to submit a claim.

 

DPM is here to help

Is your premium making the grade? The brokers and CSRs at DPM Insurance Group are always willing to explore options with you and find the best auto insurance policy that fits your specific situation – whether or not that includes young drivers at home or away at school. Click here to find the office most convenient for you: https://dpmins.com/locations/

 

 

Source: Insurance Hotline

Things you need to know about home-based business insurance

If you’ve made the leap into starting your own business, whether it’s a side hustle or full-time venture, it’s easy to get lost in all the details – picking a name, designing a logo and such. And while business insurance might not be on the top of that list, it’s actually an important detail that might prevent all your hard work from going down the drain one day.

Here are the top five things you need to know about insuring your home-based business:

  1. Your insurance company needs to know about your new home-based business before you launch it. While you might not see how your new venture could possibly result in an insurance claim, your insurer knows just how important it is to be covered when the unexpected happens. Not telling your broker about your home-based business (whether you make $50 or $5,000) could get you in trouble for failing to disclose an important fact that could have an impact on your insurance. So, before you launch your new home-based business, reach out to your insurance broker and find out what kind of coverage is needed for the type of home-based business you’re hoping to launch.
  2. You may be able to add home-based business coverage to your existing home insurance policy instead of buying a separate business policy. Depending on the type of business you plan to launch, you might be able to add a home-based business endorsement to your home insurance policy. Be sure to ask your broker if you qualify for this endorsement before you go shopping for a separate business policy.
  3. It’s all about liability. Whenever you’re selling something or providing a service, there’s always a “third party” involved – your customer. What if a bride slips on your front steps when she comes to pick up her wedding cake? What if you accidentally leave a pin in a handmade scarf and it hurts someone? While you might not think your stock itself is worth insuring, keep in mind that third-party liability is a big part of home-based business coverage, and it exists to help you out if you get sued by a customer.
  4. Plan ahead for over-the-border orders. If you’re planning to sell your stuff online, know that this could require special coverage – especially if you’re planning to ship your goods to customers outside of Canada. Be sure to ask your broker which areas are covered by your policy.
  5. You’ll want to protect your inventory and business equipment. Whether you hold your equipment and inventory in your home or off-site at a warehouse, you never know when a flood, fire, or other catastrophe might damage your most important business investments. With the proper insurance policy in place, you can avoid major financial losses and minimize any possible downtime for your business.

If you’re ready to get your dream start-up off the ground, the brokers and CSRs at DPM Insurance Group are here to help make sure that your investment and effort are adequately protected. Find the office most convenient for you by clicking here: https://dpmins.com/locations/

 

Source: Economical Insurance

What is the role of an insurance claims adjuster?

For a lot of people, their interaction with members of the insurance industry often starts and stops with their broker. They help you find the policy that best fits your situation, provide ongoing service, and often act as an intermediary with your insurance company if the time comes when to make a claim.

Insurance companies want to make it as easy as possible for you get back to normal after an unexpected loss, while also performing due diligence to ensure all parties interests are being considered. If you make a claim, you’ll be assigned a claims adjuster, sometimes called an insurance adjuster, a claims specialist, or a claims representative.  Regardless of the title, the adjuster is generally going to be your primary point of contact once the claims process begins – though at DPM Insurance Group, we’re always here to help make sure you have a positive experience while you navigate the claims process.

Basically, an adjuster is responsible for everything from verifying your policy and coverage terms and conditions to making arrangements for repair quotes and car rentals, investigating the accident or damage, gathering any reports and necessary documentation, assigning liability or fault, and determining your settlement.

Here are some of the things an insurance claims adjuster may do to help you get from filing your claim to receiving a settlement:

  • Make the initial arrangements. The adjuster will contact you and provide you with information about your claim, including your claim number, their contact information, repair and rental schedules (when applicable), and whether you will pay a deductible.
  • Investigate the accident or claim details. The adjuster will interview you to get your statement about the events that lead to your car or property damages. They may also review any police statements, injury reports, hospital or medical records, and any other details that will help them understand the extent of your loss. In complex cases they may do this in person, but in most cases, they can get this information over the phone. If necessary, they will interview witnesses, consult experts, and contact third party insurers. This information is collected to determine liability (or fault), assess the situation, and ultimately determine the amount of your settlement.
  • Review all documentation and expenses. An adjuster will review your policy terms and conditions, your degree of liability, the cost of repairs, medical expenses, lost income, living expenses, and any other expenses incurred to determine your settlement.
  • Determine your settlement. Your adjuster will calculate your settlement and present the amount to you. You can discuss the settlement value with your adjustor if you need clarification, if you feel expenses have been missed, or if you are expecting costs that haven’t been billed yet. Be prepared to present this information and documentation to your adjuster.

From the insurance company’s perspective, adjusters also play an important role in preventing insurance fraud, which is estimated to cost Canadian consumers over $1 billion a year. Fraud can range from exaggerated claims to the deliberate staging of accidents or damage. Both end up costing honest policyholders by leading to increased premiums for everyone. During their investigation, adjusters will look for anything that raises concern about possible fraudulent activity – and that shouldn’t be taken personally. It’s simply part of their duties.

In short, insurance adjusters have an important role, helping you with the claims process and negotiating a fair settlement for all parties involved in a loss.

At DPM Insurance Group, we’re hear to help you navigate the insurance process at all its stages, whether that’s finding the best policy to fit your situation or collect on a claim. If you’re interested in reviewing your current policies, or would like a no obligation quote, click here to find the office most convenient for you: https://dpmins.com/locations/

 

Source: Economical

Understanding Event Liability Insurance

There are different circumstances where you might want to consider purchasing Event Liability Insurance. This type of insurance can protect you from liability if someone gets hurt or damages the venue’s property where your event is being held. In addition, you might be able to get other coverages for your event. There are a few factors you will want to consider when deciding whether or not you need event insurance.

The Venue

Some venues will require you to have event insurance. This helps to protect their property and reduce their liability. It’s important to know what the minimum coverage amount is that they require.

Possibility of Cancellation

If there is a possibility your event could get cancelled, you need event insurance. Event insurance can provide cancellation coverage if your event gets cancelled due to specified external factors.

Serving Alcohol

If you’re serving alcohol, you need event insurance. You can add on liquor liability insurance to protect you if anything goes wrong.

Rented Equipment

Did you read the contracts for your rented equipment? Are you responsible for the costs if the equipment gets damaged? If so, you will want to talk to an insurance provider about getting it covered under event insurance.

What Does Event Liability Insurance Cover? 

Event liability insurance has the potential to cover various aspects of your event. When you purchase your insurance, you will want to ensure you talk to a broker about what is and is not covered under your policy.

Property Damage

If the venue you rented gets damaged, you might be responsible for the costs. However, event liability insurance can help; if you’re found liable, your insurance can cover the cost of repairs. This is why many venues require you to have event insurance. In addition, you want to choose event insurance that provides for third-party property damage.

Personal Injury Situations

If someone is injured during the course of your event, event insurance could cover it. Due to the cost of medical bills and more, you want to make sure you have this coverage. You also need to check and see whether your policy covers third-party injuries.

Cancellation Coverage

When you start paying deposits and getting things set up, the last thing you want is to have to cancel or postpone your event. However, at times something happens that forces you to do that.  For example, many weddings were cancelled or postponed recently due to the pandemic. Talk to your insurance company about cancellation coverage and in what situations it would apply. This can help you recoup lost deposits.

Gifts and Attire

What happens if your tuxedoes or gifts get damaged before, during, or after an event? Some insurance companies provide the option to add on extra coverage for items like tuxedos, presents, and more. Talk to your broker about what is available and what it covers.

Liquor Liability Insurance

Are you planning on serving alcohol at your event? If during the course of your event, any statute, regulation, or ordinance that is related to the sale, distribution, gift, or use of alcohol is broken, liquor liability insurance can cover you. In addition, if during the course of your event a guest becomes intoxicated and gets harmed, your liquor liability insurance can cover you.

Hired or Non-Owned Auto Liability

Are you planning to rent vehicles for your event? If so, you might want to consider adding on hired or non-owned auto liability insurance to your event insurance. This will cover vehicle damage or injury to third parties if something were to occur in a vehicle rented for your event.

Contractual Liability

What happens if an injury occurs during your event, and the injured person sues the facility, which then sues you? If your event is responsible for the injury, you might end up with a lot of costs. However, contractual liability can help you pay to defend the case in court, and it can also help pay final damages.

Worker’s Compensation Insurance

Are you hiring anyone to work your event? If so, you should look into adding worker’s compensation insurance to your event insurance. If someone hired to work your event gets injured, this could ensure that you’re covered and they get the help they need.

Types of Event Liability Insurance

There are various types of event liability insurance. The type you need will be dependent on the type of event you are planning. We have listed some of the types you could purchase.

One Time Event Liability Insurance

One-time event liability insurance can cover a variety of different events. This type of insurance can cover events that are one day or multiple days. You will need to talk to your broker before purchasing to ensure that your event can get covered under this.

Special Event Insurance

Special event insurance also gets called one-day event coverage. This can cover a variety of claims, but it only covers certain events. Some public events like art shows, fundraisers, corporate parties, or sporting events might not get covered. However, if your event does qualify for this type of event liability insurance, you might have alcohol liability and general liability insurance covered under the policy as well.

Wedding Event Insurance

How much time and money have you spent planning your wedding? The average cost of a wedding in Canada is $22,000 to $30,000. That’s a lot of money. If something goes, wrong during your wedding or before, it can add on to that cost. In addition, if for some reason your wedding needs to get postponed, you could lose any deposits you paid. Having wedding insurance can help cover those possibilities so that you don’t have to stress about the investment you’ve put into your wedding.

Food Festivals

Do you have a food truck? If you’re planning on taking it to a food truck festival or another event, you’ll need event insurance. Even if you don’t have a food truck, but you’re participating in a food festival, you need insurance. This can cover injuries and equipment losses so that you can continue to go to these festivals in the future.

For example, in 2021, at the Taste of Edmonton festival, one food vendor’s booth caught on fire.  One person went to the hospital, and damages to the property were estimated at around $75,000 In a circumstance like this, event insurance can help cover your business during food festivals.

In addition, many event organizers require food vendors to carry event insurance.

Trade Shows

If you’re hosting or planning a trade show, you’ll also need event liability insurance to protect you from liability claims. This coverage can help pay for third-party injury or third-party property damage. It may also include liquor liability and contractual liability. Many trade show venues required a minimum of one million dollars of liability coverage when you’re hosting an event at their venue.

What Is Not Covered by Event Liability Insurance?

There are some types of events that event insurance won’t cover. These events vary. However, a few types of events that won’t get covered include:

  • Activist events, for example, protests or rallies
  • Aircraft events
  • Boating events
  • Hot air balloon events
  • Motorized sporting events, including tractor pulls

If you’re planning to host any of these events, your insurance company might not cover them. In these cases, you might need to look into special insurance through other companies that will cover it.

In addition, if you have cancellation coverage for your wedding, it’s important to know when that will apply. If you call off the wedding because you get cold feet, it is not covered. Cancellation coverage only covers things that are outside of your control and forces you to cancel your event.

Typical Costs of Event Liability Insurance

The cost of event liability insurance will be dependent on a few different factors. Part of the cost will get determined by the type of event you are having and how long it will last. Another part to consider is any additional coverage you add to your plan and the amount of coverage you get.

The Takeaway

Are you ready to start planning your event? The last thing you want is for anything bad to happen during your event; however, if it does, make sure that you are covered.

The brokers and CSRs at DPM Insurance Group are here to help you find the best rates for your next event. Click here to contact the office most convenient for you: https://dpmins.com/locations/

 

 

 

Source: Insurdinary

 

 

Buyer Beware

The term “Buyer Beware” often has a negative connotation for people – but that’s not necessarily the case. Quite often, in fact, it means that it is important for people to fully understand the limitations of a service they are purchasing, and NOT that they are being duped somehow.

Recently, we shared a news piece from CTV television which described a woman’s dismay when she discovered the loss of her $50,000 diamond wasn’t covered by her home insurance policy. She was not tricked, or deceived, she simply did not understand the limitations of her policy when it came to jewelry.

Here at DPM Insurance Group, we strive to ensure our clients have a full understanding of their policy, and are comfortable with its limitations and confident that the property they are trying to protect is covered in the manner they expect.

Having said that, it is still prudent to follow the guidelines below, as outlined by the Insurance Bureau of Canada. Informed buyers carefully review their insurance policy and policy limits. Know what to look for when reviewing all sections of auto, home or business policies.

5 Tips When Reviewing Your Insurance Policy

An insurance policy is a contract between you and your insurance company. When you buy or renew your auto, home and/or business insurance, take time to:

Ensure the name and address of the insured individual or business is accurate. A policy cannot be transferred to another person. While typically a new application is required for issuance of a new policy, exceptions do exist.

  • Ensure coverage is as required and that the limits are adequate.
  • Check the location(s) listed to ensure they are accurate.
  • Ensure the insurance company is properly identified.

Read the conditions carefully. Many policies require the insured individual or business to comply with all policy conditions before claiming on the policy. Clarify any words that are unclear or undefined in the policy. Look up unclear words in a dictionary to understand their common meaning. If the word has more than one common meaning, ask your insurance representative how it applies to your policy.

Utmost Good Faith

Insurance contracts rely heavily on the information the insured individual or business provides. Deliberately misstating or excluding important information, or neglecting to inform the insurer of changes, could result in denied claims and policy termination.

How to Read Your Insurance Policy

Here are the four sections you can expect to see in an insurance policy:

​​Declaration

  • ​What risks are covered – a list of coverages purchased
  • Policy limits – limits of insurance, and deductibles purchased
  • The amount of premium due
  • Others who have an interest in the policy (e.g., mortgage holders, lenders)
  • A list of form numbers and endorsements that add to or alter the policy

​Insuring agreements

  • ​What losses are covered
  • The subject matter of the insurance and description of the property covered
  • The perils insured against – circumstances when the insured may receive the proceeds of the insurance
  • For a claim to be valid, it must be covered under the insuring agreement and not stated as an exclusion

Policy conditions

  • ​Requirements the insured must fulfill to maintain coverage:
  • If the insured breaches a condition, the policy can become void or the insurer may refuse a claim arising out of the breach
  • Statutory conditions that the insured or insurer must comply with
  • Understand how the law affects your policy

Exclusions and special limits

  • Certain property and perils are excluded from coverage.
  • Other insured property may be insured up to a Special Limit.
  • Understand these exclusions and limits to avoid disappointment after a loss.

At DPM Insurance Group, our brokers and CSRs are committed to ensuring our clients have a full understanding of their policy, its coverages and exclusions. If you would like a free, no obligation review of your current policies, or just have a question you would like cleared up, contact the office most convenient to you. Our contact details can be found here: https://dpmins.com/locations/

Home insurance myths can impact your coverage

There are enough real variables to consider when purchasing home insurance that it’s important to put to rest the myths that only confuse the situation. Basing your decision on misconceptions can be costly – either up front in your premiums, or down the road when it comes to file a claim.

While the brokers and CSRS at DPM Insurance Group are available to assist you through the process any time you wish, we can quickly clear up a handful of the most prevalent myths tied to home insurance.

Myth: All personal property in the home is fully insured

While a home insurance package policy provides contents coverage for personal property, there are specific limits and exclusions. Many high-value items, such as jewelry, fine art, musical instruments, and electronics (among others) usually have a per-item and coverage cap.

If you want to make sure those types of things are covered for their full value, you may need to purchase additional coverage. As well, if you often work from home, you should know that business equipment owned by a company is not normally covered under a home policy. A business equipment endorsement may be needed for full home office coverage.

Myth: A home should be insured for the purchase price

It’s probably just because we work with such policies every day that this one surprises us so much, but how much it costs to buy a home is not the amount that it would cost to rebuild it from the ground up – and that’s the number insurance companies base their decision on when setting your rate.

There are many aspects tied to the market value of a home that have absolutely nothing to do with insurance: the value of the land, the location, the zoning designation of neighboring properties and more. If your home burns to the ground, those factors are not impacted whatsoever – only the structures on the property and the contents of those structures have been damaged. So, overall, a home should be insured for its replacement cost, not market value.

Myth: Water damage is covered by a basic home insurance policy

Generally speaking, only some forms of water damage will be covered by a basic home insurance policy. Let’s say a burst pipe causes sudden, accidental water damage. In that case, it’s quite likely the damage will be covered. But gradual water damage over time that’s caused by inadequate maintenance won’t be covered. You can also receive coverage for a sewer back-up, but only if you add this endorsement to your policy. (It’s optional, and you’ll have to pay for it.)

Overland flooding coverage is another form of water damage protection that can be added to your home insurance policy. This optional coverage might be best suited for those who live near bodies of water that could overflow onto the property.

Myth: Home insurance covers safety upgrades

If your roof is getting old, or a tree is dying and looks like it could fall and hit the house, home insurance is not going to cover the costs associated with fixing those things to prevent future loss. Your insurance policy is designed to return a home to a pre-loss state after an unexpected incident, like a fire or break-in. Normal maintenance of the home is the homeowner’s responsibility and not part of your insurance coverage.

Myth: Natural disaster-related damage is always covered

While it’s true that a lot of weather-related damage is covered by a home insurance policy, that doesn’t mean everything is. Wind, lightning, and hail damage re usually covered, but earthquakes are an example of things that typically are not. These things are all dependent on the specific terms of your policy. Additional optional coverage is normally needed to account for all potential natural disasters. That’s why we’re always reminding people that it’s important to be aware of the covered perils and exclusions so you truly understand what you’re protected against.

It’s important – both from a coverage aspect, and a cost of policy perspective – that homeowners understand what is and is not covered, and consider additional coverage, endorsements, or riders to protect what’s most important to them. If you’d like some assistance to review your current policy, or would like a no-obligation quote to insure your home, the brokers and CSRs at DPM Insurance Group are here to help. C lick here to contact the office nearest you: https://dpmins.com/locations/

 

Source: Economical

 

Getting Car Insurance After Cancelled Policy

Getting Car Insurance After Cancelled Policy

Most auto insurance policies spell out exactly what to do if you want to cancel your policy early. But what if the insurance company decides to cancel your coverage? How do you go about finding a new policy in the event of a cancellation?

Below are your options if your insurance company informs you of a policy cancellation, as well as the top reasons car companies cancel policies, the long-term consequences of a cancelled policy, and how to find new auto insurance coverage post-cancellation.

Six reasons insurance companies cancel auto policies

When you purchase car insurance in Canada, you sign a contract with the insurance company. If either party fails to hold up their end of the bargain, the contract may be broken. However, an insurance company won’t cancel someone’s policy without good reason (at least outside of the initial 60-day window). Some of the top reasons that car insurance companies cancel auto insurance policies are non-payment, fraud, and misrepresentation.

Non-payment

Non-payment is the most common reason that auto insurance policies get cancelled. If you miss a payment, even just one, your insurance company will notify you that you have a set number of days to pay the outstanding balance (usually 15 days). If you fail to make the payment after the deadline has passed, the insurance company may cancel your policy.

Keep in mind that even if the insurance company cancels your policy, you still have to pay your bill. Specifically, you must pay for the period between your last monthly payment up to the point that your policy was officially cancelled (this is what’s known as time on risk). You won’t be able to buy a new auto insurance policy from another company until the balance is paid. For this reason, it’s best to settle your current debt before trying to obtain a new policy. If you’re ever in danger of non-payment, contact your insurance company as soon as possible to inform them which might help avoid a policy cancellation.

Misrepresentation

Another reason insurance companies cancel auto insurance policies is due to misrepresentation, which is when a policyholder withholds information or lies about their driving record or claims history. This is usually done to receive a cheaper rate. However, if (when) the insurance company finds out that you misrepresented the truth, they could cancel your policy. An example of misrepresentation is failing to mention that other people will be driving the vehicle regularly (to avoid paying a fee for additional drivers) or hiding the fact that the vehicle is used for both personal and commercial purposes. Non-disclosure or omission of truth count as misrepresentation, which is why policyholders should always tell the truth when applying for auto insurance.

Suspended driver’s licence

There are many reasons why the authorities may suspend someone’s driver’s licence. In the event your licence is suspended or revoked, your insurance company may cancel your auto insurance policy. If your licence is in danger of being suspended, contact your insurance company or broker right away.

A change in risk

A material change in risk, also known as a change in situation, is another reason that auto insurance companies cancel insurance policies. An example of a material change in risk is if you are diagnosed with a medical condition that makes it dangerous to drive, such as problems with your vision. If a change in risk occurs, your insurance company can cancel your policy.

Fraud

Similar to misrepresentation, fraud is another reason an insurance company could cancel your policy. Insurance fraud is when a policyholder files fraudulent claims or lies about the circumstances of a loss. To avoid having your policy cancelled due to fraud, always be honest with your insurance provider and never file an unwarranted claim.

Filing too many claims

One final reason that an insurance company in Canada might cancel your policy is because you file a large number of claims, especially if they are filed in a short time frame. Filing too many claims is a red flag to insurance companies as it indicates that you have been involved in an above-average number of incidents. This can lead to your insurer cancelling your policy and you being deemed a high-risk driver, making it harder and more expensive to obtain auto insurance in the future.

What to do if you can’t afford to make a auto insurance payment

If your next auto insurance payment is not due yet, but you know you won’t be able to pay it on time, it’s imperative that you contact your insurance company as soon as possible. If you contact them and inform them of your predicament in advance, you have a better chance of working out a new payment plan and avoiding cancellation. For example, the insurance company might agree to postpone payment or temporarily extend the due date until you can pay the bill. Insurance companies have the ability to offer a bit of leeway when it comes to payments, especially if you have a legitimate reason.

If the payment due date was a few days ago

If the payment due date passed, you might still be able to have your policy reinstated if it’s only been a few days to a week late. The period immediately following the instalment due date is known as the grace period. If you pay the amount missed within this time frame, the insurance company is not likely to cancel your policy, though the payment may be subject to a late fee. Before you reach this point, contact your insurance company or broker to find out the exact length of the grace period and the cost of the late fee.

The consequences of a cancelled auto insurance policy

The consequences of an insurance company cancelling your policy are serious. Whatever the reason, policy cancellations have long-term consequences and can lead to difficulty obtaining a new policy.

Driver’s licence suspension

Auto insurance is mandatory in every province and territory in Canada, and many regions require insurance companies to notify them if a driver’s insurance policy lapses or is cancelled. Therefore, if an insurer cancels your policy, it could result in an automatic suspension of your driver’s licence until a new policy is obtained. Since driving without insurance is illegal, you would not be able to get behind the wheel legally until you have a new policy.

More expensive auto insurance rates

When your auto insurance policy is cancelled, this goes on your record, making it more difficult to obtain a new policy in the future. Insurance companies reward drivers who pay their bills on time and have clean driving records. Policy cancellations make you a riskier investment, which can lead to higher auto insurance rates. In some cases, you may be required to purchase facility auto insurance – which is designed for high-risk drivers.

Repossession of a financed or leased vehicle

If you drive a financed or leased vehicle, it could be in danger of repossession if your insurance policy is cancelled. This is because many lenders require drivers to maintain full coverage on their vehicle for as long as it is financed. If the lender finds out your policy was cancelled, they could repossess your car.

A lower credit score

One last consequence of a cancelled auto insurance policy is a lower credit score. If you have an outstanding balance with your insurance provider, the insurer could pass this information to a collection agency. In turn, this could impact your credit score, making it more difficult to take out loans, including a mortgage or credit card in the future. Most incidents remain on your credit report for seven years.

Top three tips to avoid having your car insurance policy cancelled

  1. Tell the truth

Do not lie or omit the truth from your insurance company in an effort to obtain a cheaper rate. It may seem like a great way to save money, but if caught, there are serious consequences, including policy cancellations and hefty fees. Therefore, whether filling out an auto insurance application or filing a claim with your provider, always tell the truth.

  1. Follow the rules of the road

Drive safely by following the rules of the road. When you drive safely and responsibly, you are less likely to get into an accident, which means fewer claims. This leaves you in better standing with your insurance company, so in the event you weren’t able to make a payment, they might be more inclined to give you some leeway. Plus, when you drive safely and avoid infractions, your insurance premium will likely be lower.

  1. Make payments on time

The last tip for avoiding a policy cancellation is to always make payments on time. If you frequently miss deadlines due to forgetfulness, set a monthly payment reminder on your phone or computer, or consider purchasing an annual policy with one payment due date, if feasible. In the event you can’t afford to make a payment on time, contact your insurance company as soon as possible (ideally before the payment due date or no more than a few days after). Notifying them in advance will increase your odds of them working out a new payment plan with you versus cancelling your policy altogether.

What to do if your insurance policy is cancelled

Despite following the tips above, there may come a time when your policy gets cancelled. If this happens to you, try not to panic. Your insurance company is required to give you advance notice of a policy cancellation. This notice will either be sent in the mail or sent electronically by email. The notice will detail both the reason for the cancellation and the cancellation time frame. Typically, cancellation due to non-payment requires 10 days’ notice, whereas cancellation for other reasons can be given up to 45 days in advance. Should you receive a notice of policy cancellation from your insurance company, you have two options. The first is to fight the cancellation by presenting your case to the insurance company, and your second is to accept the cancellation and find a new policy.

Option one: make your case to the insurance company

If you think your insurance company is not warranted in cancelling your policy or you had a valid reason for the cause of the cancellation, you might decide to fight the cancellation. In an effort to have your policy reinstated, you will need to plead your case. To do so effectively, you must provide concrete proof that you are not a high-risk driver. Proof varies considerably and largely depends on the reason for the policy cancellation. In general, the goal of making your case is to prove to the insurance company that you are a safe and responsible driver who is unlikely to file many claims in the future. As part of your case, you could also propose increasing your deductible (especially if most claims were under $5,000). You could even inquire about an alternative car insurance policy, like one tailored to high-risk drivers, which would likely be more expensive but could help you avoid cancellation. Lastly, you may wish to highlight your loyalty and value to the insurance company over the years by detailing how much money you’ve spent with them (totaling all policies). Once you’ve presented your case, which can be done over the phone or in person, your insurance company will likely take a few days to review it. Upon review, they will either decide to reinstate your insurance policy or continue with the cancellation.

Option two: find a new car insurance policy

If you receive a car insurance policy cancellation notification from your insurance company, your second option is to find a new policy. This may be your only option if you were unable to successfully plead your case.

Whatever road led you to this place, finding a new car insurance policy is vital, especially since driving without insurance is illegal in Canada. Depending on the circumstances of your cancellation, finding a new policy might not be too difficult. For example, if the cancellation was due to you failing to disclose another driver, you can likely find a new policy easily, so long as you disclose all drivers this time. That said, if your policy cancellation was due to non-payment, fraud, or a driver’s licence suspension, you may not be able to find a new policy as quickly. In this case, you should contact a broker to discuss your options. They can let you know if you are eligible for car insurance from a standard provider or if you need to seek insurance from a provider specializing in high-risk drivers.

Steps to getting auto insurance after a cancelled policy

Finding auto insurance after a cancelled policy is harder than it sounds. Ultimately, even if you are not eligible for a standard car insurance policy, you will still be able to buy high-risk or facility insurance. Keep reading to discover the three steps to obtaining car insurance after a cancelled policy.

Kick things off by contacting an insurance broker. In fact, this is a great first step, whether your existing policy has already been cancelled or is in danger of being cancelled. The experts at DPM Insurance Group can review your case and help you fight the cancellation, if applicable, or help you find a new car insurance policy.

Contact DPM Insurance Group for your next auto insurance policy

Do you need an auto insurance policy? The brokers and CSRS at DPM Insurance Group are here to help. You can get in touch by phone, email, or in-person for help finding an auto insurance plan that meets your needs and budget. Click here to find the DPM office most convenient for you: https://dpmins.com/locations/

 

 

Understanding Trip Cancellation and Trip Interruption Insurance

The unpredictability of the last two years taught us much about travel and the need for an excellent travel insurance policy when the unexpected strikes. Frequent travelers generally already know the importance of trip cancellation insurance, while others are just coming to appreciate the need for these types of policies.

It’s difficult to anticipate what your best options are when it comes to booking a trip, since airline policies can change drastically, leaving passengers in a financial lurch.  But you can avoid the added aggravation with the right trip cancellation insurance. Consider these options for added protection before booking your next trip.

Trip Cancellation Insurance

Trip cancellation insurance reimburses you for non-refundable, prepaid trip costs when you can’t take a trip. To qualify, the reason for your cancellation must fall into a predetermined list, which vary by policy.

This type of policy protects you from the day after you purchase a policy until you depart on your vacation. After you’ve left on your trip, this insurance coverage ends. Even if you’re travelling to multiple destinations, it’s still considered one trip and your cancellation coverage ends at the time of your initial departure.

Trip Interruption Insurance

How does trip interruption insurance fit into the mix? Coverage begins at the time of trip departure. It protects you in case you need to return form your vacation early and pays the cost of travel arrangements for you to return home. Some policies also offer coverage so that you can rejoin your trip later. This applies to those who miss a scheduled departure due to a covered reason.

Trip Cancellation vs Trip Interruption Insurance: Covered Reasons

You’ll find that the reasons outlined for trip cancellation coverage are typically the same as those for trip interruption insurance. There are differences, however, between the companies offering these policies. They include events such as injury, illness, a travel company that ceases operation, acts of terrorism, layoffs, natural disasters and severe weather.

Reasons for Cancelling or Interrupting a Covered Trip

Here’s what you need to know so that you don’t have any unpleasant surprises later. Take a look at the differences between travel insurance and international health insurance. Accepted reasons you may interrupt or cancel a trip vary by policy. Nevertheless, both policy types usually cover:

  • Hospitalization or death of a family member
  • Unexpected illness or injury of you or a travelling companion, deeming you unfit to travel (by order of a licensed physician)
  • Unforeseen natural disasters at home or a destination
  • Legal obligation, such as being called for jury duty or to appear as a witness in court.
  • Circumstances beyond your control, resulting in the cancellation of the public transportation you’ve paid for to get to your destination

If you’ve ever experienced one of these unexpected events while travelling, you already understand how important this type of coverage can be.

Countries That Now Require COVID-Related Travel Insurance

Some destinations now even require visitors to have travel insurance. These destinations stipulate policies must provide coverage to pay for extended accommodations and medical bills should you contract COVID while abroad.

They include:

  • Anguila
  • Aruba
  • Brazil
  • Bahamas
  • Cambodia
  • Costa Rica
  • Jamaica
  • Lebanon
  • Maarten
  • Thailand
  • Turks and Caicos
  • Ukraine
  • US Virgin Islands

The specific type of policy required depends on which nation you’re visiting. For example, visitors to Anguilla and Brazil must have proof of health insurance that will cover all COVID-related medical expenses. Other places, like Jamaica, have introduced a mandatory $40 insurance fee to gain entry. The fee goes towards the “Jamaica Cares” program and is applied to medical services. It covers everything from COVID-related medical expenses to natural disasters.

Some nations also stipulate the amount if insurance coverage you must have. For example, Aruba requires coverage of up to $75,000 and Costa Rica $50,000. Thailand asks for $100,000 in medical travel insurance.

Countries That Require Non-Coronavirus-Related Travel Insurance

It may surprise some travelers to learn that other countries require travel insurance for non-coronavirus-related reasons. For example, if you travel to any of the 26 Schengen nations, you must carry adequate medical insurance to get a visa.

This proves true for individuals who are traveling for both business and pleasure. Besides the Schengen nations, you’ll also need insurance to travel to the following countries:

  • Antarctica
  • Cuba
  • Ecuador
  • Egypt
  • Japan
  • New Zealand
  • Qatar
  • Russia
  • Turkey
  • United Arab Emirates

Is Trip Cancellation and Trip Interruption Insurance Right for You?

Travel insurance makes sense for a variety of different reasons. After all, the investment associated with booking travel arrangements can be significant. You may not be able to cancel your trip without incurring significant cancellation penalties.

A premature disruption of your trip can come with even more severe costs. Does this mean travel insurance is right for you? The answer to this question ultimately boils down to how much money you are prepared to put at risk.

Other factors to consider are your age, your current health, the current health of your immediate family, and what kind of coverage you have elsewhere. The following is a good rule of thumb. The larger the trip investment, the more necessary it is for you to purchase trip cancellation and interruption insurance.

What Trip Cancellation and Interruption Insurance Doesn’t Cover

To know what policy does and doesn’t cover, you’ll need to consult its description of coverage. People often assume the following reasons may be claim worthy, but to the insurance company, they most definitely are not:

  • Getting detained by customs
  • Missing your flight
  • Cancelling because of a work obligation
  • Cancelling due to an illness or injury related to a pre-existing medical condition not covered

That said, some pre-existing conditions are covered by most travel interruption and cancellation insurance, though most companies stipulate that the condition be stable for a specific period of time prior to buying the insurance. In other words, you must take “a turn for the worse” after qualifying for coverage. Depending on your insurer, you may have other restrictions to observe, too.

This may include purchasing your policy by a certain date before departure. This date range typically falls before the cost of what you are insuring is non-refundable. For example, this is when cancellation fees for cruises or hotels take effect.

How Much Does It Cost?

Many consumers have concerns about how much a policy like this will cost them. The final price you pay will depend on various factors, including:

  • Your age
  • Health
  • Trip duration
  • Number of people insured
  • Cost of your trip
  • Provincial sales tax

In general, a combined trip cancellation and interruption insurance plan will run you anywhere from four percent to ten percent of your total pre-paid, non-refundable trip cost. So, if you purchase a trip costing a total of $5,000. The travel insurance policies available to you will likely range in price from $250 to $500, depending upon variables such as the type of policy you choose.

Credit Cards and Trip Cancellation and Interruption Insurance

You may have a credit card that provides travel insurance as a benefit. But you must verify what type of coverage it provides. That means inquiring into what limitations exist and how much protection it provides.

Some credit cards provide trip interruption insurance. This coverage may qualify you for a refund (up to a maximum amount). This coverage will kick in should a covered event happen after your departure.

Other cards, usually those with a higher annual fee, also offer trip cancellation insurance. This also qualifies you for a refund (up to a maximum amount) should a covered event happen before your departure.

It’s important to verify what the maximum limit is for the travel insurance provided by your credit card. That way, you can recover most or all of the costs of your cancelled or interrupted trip.

Your card will cover up to $1,500 per covered person in some situations. Many policies have an overall maximum of $5,000 for all covered travellers. These include those for whom the travel was paid for on the respective card. If your trip costs significantly more than this, consider buying additional trip cancellation and trip interruption insurance.

Limitations on the Travel Insurance Provided by Credit Cards

What else do you need to know about credit card travel insurance policies? Many have age limits on their trip cancellation and trip interruption insurance. It starts at 65 or 70 years of age.

Some credit cards don’t provide any travel insurance, so it pays to read your credit card insurance booklet and ask questions if you are unsure of your coverage and the conditions necessary to meet it. To be covered, you must also charge the entire cost of your trip on the credit card offering these insurance benefits.

Wrapping Up

Trip interruption and trip cancellation insurance provide travelers with extra protection when the unexpected occurs. If you’ve taken risks in the past and travelled without insurance, now’s the time to rethink this approach. Not only has the risk of COVID raised the stakes considerably, but many nations now require policies before you may enter their borders.

 

Source: insurdinary

When and how to report a car accident

If you’ve ever been in a car accident, you know what a chaotic and overwhelming situation the aftermath can be. Either way, as traumatic as an accident can be, it’s important you do all you can to remain calm and handle the situation correctly.

Here in Ontario, what to do immediately following a collision depends on the severity of the accident, the amount and type of damage, and whether there are any injuries. Sometimes, the need to report an accident to the police right away is completely obvious, while in other situations you can report to a collision reporting centre and your insurance company after dealing with the scene of the accident.

When to report an accident to the police

Certain situations require reporting a car accident to the police immediately so that they come directly to the scene of the collision. Be sure to call the police if:

  • Anyone has been injured or killed
  • The damage to all vehicles involved appears to exceed $2,000
  • Any driver involved appears to be intoxicated or under the influence of drugs

Check any single item on the list above and you should call emergency services immediately by dialing 911. It’s also best to wait for first responders to arrive on scene before moving anything or anyone from the area. The police will tell you how to proceed.

When to report an accident to a collision reporting centre

Lesser accidents that don’t meet the above criteria probably don’t require police to respond. But you still have to report the accident to a collision reporting centre instead of the police within 24 hours if:

  • No one was injured in the accident
  • The damage to all vehicles appears to be under $2,000

This will involve completing a police report and photographing the damage to your vehicle for your insurance company.

Some municipalities in Ontario have collision reporting centres available to help with the process of reporting an accident. You can call your local police department to find out where the closest collision reporting centre is. If there is no location near you, you may be instructed to go to your local police department and file a report.

If there is a centre near you, you can bring your car in to have the damage photographed and receive assistance with filing the police report. These locations exist to make the process of reporting a collision simpler for everyone.

Reporting a hit-and-run collision

If you are involved in a hit and run and the driver is still in the area of the accident, call the police to report it. In situations where the hit and run occurs when you are not present, such as when your car has been parked, you can make the report at a collision reporting centre.

Reporting a collision to your insurance company

You are required to report any accident you have to your insurance company, whether the police are involved or not. You should call your insurance company as soon as possible after the accident to make the report.

Police and collision reporting centres do not report accidents to insurance companies, but the accident may show up on your driving record and come to the attention of your insurance company, so it’s best to be honest and report it directly.

You can report an accident to your insurance company by calling your agent or broker, or by calling an accident reporting hotline that may be available, depending on your insurance company. Your insurance card should list all of the pertinent information on how to report an accident. In some cases, it can be done online.

Your insurance company will require you to give a statement regarding the accident, and an adjuster will be assigned to handle the processing of your claim. Though making a claim can sometimes result in you having to pay your deductible, ensuring a legitimate repair means getting back out on the road safely.

 

Source: Insurance Hotline

Blenheim Office

24 Marlborough St. N., Box 479
Blenheim, ON N0P1A0

Phone: 519-676-8159
Fax: 519-676-0020

Chatham Office

250 St. Clair St.
Chatham, ON N7L 3J9

Phone: 519-352-4343
Toll Free: 1-800-561-4949
Fax: 519-352-6484

Essex Office

29 Talbot St. N, Box 69
Essex, ON N8M 2Y1

Phone: 519-776-6457
Fax: 519-776-7400

Harrow Office

65 King St. W., Box 790
Harrow, ON N0R 1G0

Phone: 519-738-2277
Fax: 519-738-2279

Tilbury Office

59 Mill St. E, Box 1239
Tilbury, ON N0P 2L0

Phone: 519-682-0202
Fax: 519-682-2391

Wallaceburg Office

403 Wellington St.
Wallaceburg, ON N8A 2Y2

Phone: 519-627-1777

DPM Insurance is a BrokerLink company. The BrokerLink companies are subsidiaries of Intact Financial Corporation (TSX: IFC)