What is auto insurance?
Like any other type of insurance, automotive insurance is a form of financial protection for you and your family. The premium you pay to the insurance company ensures you’ll be covered financially, should anything ever happen. Simply put, insurance is a way to share risk. When you buy insurance, you’re buying financial protection and peace of mind. Your insurer uses the premiums of thousands of other vehicle owners to pay for the financial loss of those who are involved in collisions and other mishaps. Tanner Insurance specializes in finding and advising you on the best coverage.
What is a deductible?
The deductible is what you are responsible for paying as part of the overall insured loss. Usually, the amount is $500. This means that you have to cover $500 of any repair bill and the insurance policy pays the rest. Any damage that costs less than $500 is your responsibility. There is no deductible in the case of damage incurred by fire, lightning, or theft.
What about coverage for damage to non-owned automobiles?
Tanner Insurance recommends this coverage for clients who rent vehicles for more than 5 days a year. This coverage extends collision and comprehensive coverage to a vehicle that you assume under a written agreement. For example, if you rent a vehicle while on holidays and you have an accident, this coverage will pay for any damage to the vehicle you rented. This coverage usually has a limit between $25,000 and $50,000, and costs about $25 annually. If you purchase this insurance from the car rental company, you may pay up to $25 a day.
What is Family Protection Coverage?
Tanner Insurance recommends this coverage, and 99.9% of all our clients carry this coverage. This coverage provides payment for you or your family in the event you are legally entitled to recover from an uninsured or underinsured motorist. For example, you are hit by a drunk driver and awarded $350,000 in damages due to your injuries. If the drunk driver does not have enough insurance to pay, or has no insurance at all, this optional coverage will provide payment to you. This added protection usually costs between $20 and $30 annually.
Is there coverage for transportation replacement?
This is our most popular option. Tanner Insurance highly recommends this coverage, unless you have a spare vehicle at your disposal. This coverage provides reasonable expenses incurred for a rental vehicle if your vehicle is in a body shop after an accident. This added protection usually costs between $20 and $35 annually.
What factors affect the cost of my car insurance?
More than anything else, your driving record is the most important factor affecting your insurance rates. The insurance company also considers some other aspects including: type and age of vehicles, whether the car is used for business or pleasure, where and how far you drive, and how many people use the vehicle. Your record of moving violations are used by most insurance companies as an indicator of how responsible a driver you are. The more you seem a risk, the higher premiums you pay.
How much liability insurance do I need?
Liability insurance protects you in the event your vehicle is involved in an “at fault” auto accident. If you caused any bodily injury, death, or property damage to anybody your liability insurance will protect you from any successful lawsuit. We now recommend at least $2,000,000 of coverage due to the increase in courts awarding victims over $1,000,000 in damages.
If I drive an old car, do I still need insurance?
Collision coverage is optional in Ontario. If you drive an older vehicle, you may wish to drop collision coverage to reduce your insurance premium. Most people drop collision coverage once their vehicle is 10 years old or if the vehicle value is less than $3,000. Since everybody’s situation is unique, call one of our professional sales staff for your own personal evaluation.
Can I insure my car against depreciation?
As the old adage goes, “As soon as you drive a new car off the lot, it depreciates 40%”. However, you can insure a new vehicle against depreciation for the first two years of ownership. For the incredibly low annual fee of $25, you can protect the full retail value of your car and insure it against losses incurred from theft, damage and depreciation. You won’t get this kind of valuable information voluntarily if you were to deal directly with a call centre or direct writer. This is just one example of the inside edge you get with the expertise of Tanner Insurance.
What will my insurance pay for if my car is damaged in a collision?
The insurance company will pay for the repair or replacement of your vehicle, minus the deductible, to restore your vehicle to the condition it was in prior to the loss. They will only cover the part of your car that was actually damaged. If you make other repairs to your vehicle not directly related to the accident, you are still required to contribute financially. During repair, the mechanic may use reconditioned or used parts. These parts must be of the same quality as the originals and must not adversely affect the operation of the vehicle. Any extra work done on the vehicle not directly related to the damage is your financial responsibility.
How can I be sure I’m protected?
A good insurance broker should outline all of the mandatory and optional parts of a given policy so that you know to what degree you are covered. Tanner Insurance has built a reputation for client support and answering all of our clients’ questions. Further, we’ll explain all of the fine points in clear, straightforward language. We know most people don’t have the time to wade through all of the details of their coverage. That’s what we’re here for. Call us anytime and we’ll find what you’re looking for.
Are there risks or hazards to my home that can’t be covered?
No policy can cover every possibility. The cost would be too prohibitive. Flooding in a floodplain region for instance, generally can’t be covered because in certain situations or geographic locations such damage is inevitable. The challenge is to find the most appropriate coverage that suits you. For example, if you live in Southern Ontario, you shouldn’t be paying for avalanche insurance. This might sound extreme, but many people are paying for coverage that they don’t need. With Tanner Insurance, we’ll make sure you’ll only be paying for what you need.
Is there optional coverage that includes risks not normally found on a policy?
Yes. For instance if you live in an earthquake zone you should have coverage. But don’t necessarily assume that you do. Unless it is specified directly or your broker or an insurance representative has stipulated that this is the case, you may not have the protection you need. As your insurance broker, we make sure that we ask the questions you might not ask, so you’ll always know where you stand.
What’s not covered in my home insurance policy?
All policies have common exclusions and limitations such as war, nuclear hazard, and willfull damage (to name a few). However the cheaper policies usually have more exclusions and will limit or cut coverages in areas where a loss is most likely to occur. A common exclusion on a cheaper policy would be to exclude electrical power surge to computers and appliances or limit jewelry coverage to $2,000 and cash to $200. A better policy will provide $6,000 for jewelry, $500 for cash, and include power surge. Call one of our professional sales staff for more information on exclusions and limitations.