5 Practical Questions To Ask When Renewing Your Auto Insurance

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5 Practical Questions To Ask When Renewing Your
Auto Insurance
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The questions you should always ask to make sure
you have the best auto insurance coverage you can
affordRight after youve had an accident is not
the ideal time to brush up on your auto insurance
coverages.If you ask most people on the street,
they have no idea what theyre entitled to and
what theyve paid for. Thats a mistake that
could cost you.
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Thats why, when your policy comes up for
renewal, you must take the time to chat with your
broker or agent to confirm your coverage,
limitations, deductibles and changes to
legislation that could affect you in the case of
a motor vehicle accident (MVA).The legislation
surrounding motor vehicle insurance in Ontario
changes regularly, most specifically in the area
of Accident Benefits (the benefits payable in the
case of an injury sustained in an MVA).
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Im not going to spend a lot of time laying out
specifics here, as they could very well be
different in a year, but it IS important for you
to be aware of what your policy includes, since
the changes most often mean you are getting less
and less coverage for your dollar.Basic Ontario
coverage is bare-bones and you want to really
think about what you might need in the case of an
injury.Your broker should be detailing what you
are entitled to and what those coverages will
cost, and here is a general outline of the
categories you need to have in mind when
discussing your renewal
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Compensation For Catastrophic ImpairmentIn this
area, I encourage you to consider, for a few
dollars a year, a family protection
endorsement.I can explain this best with an
example.If you were hit by someone else who only
had minimal liability coverage200k, for
example and no personal net worth, suing them
would be pointless. However, with a family
protection
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endorsement, you could sue your own company for
the difference in expenses between what you can
get from the other persons insurance and the
coverage you have (which can go up to 2 million
or greater).Rehabilitation is expensive.
Attendant care, if you need it, is expensive.
This endorsement is a protection for you against
the financially unrealistic basic coverage that
is available to drivers in Ontario.
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Maximum Weekly Income Replacement BenefitsIn
Ontario, Income replacement benefits, which are
payable if you cant work following an MVA, are
capped.At the time of this writing, they are set
at 70 of your gross income, capped at 400 /
week.If you make 65,000 / year (or 1250 /
week), the 70 amounts to 875 / week, yet the
cap falls woefully short at only 400 / week.
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If you were unable to work for an extended period
of time, this could quickly become a problem for
you and your family. The good news is that you
can pay extra to extend that cap to 1000 /
week.I know that auto insurance rates in Ontario
are among the highest in North America, but this
is one area where I think its worth the
investment. And to assure you that I walk the
talk, as a self-employed person and sole
provider, this is something that I do to ensure
Im not caught short if I were ever to be injured
in an accident.
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Increasing The Limits Out Of Minor Injury
Guideline This one is a bit confusing so stay
with meUnder Accident Benefits, if your injury
falls within the definition of the Minor Injury
Guidelines (MIG), you are only entitled to up to
3500 of rehabilitation benefits (and no
attendant care benefits at all).The MIG
definition includes things like sprains, strains,
minor whiplash, cuts and bruises
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If you have an injury that falls outside of the
Minor Injury Guidelines but is not catastrophic,
you have higher compensation limits for
rehabilitation and access to attendant care.One
of the things you can do is buy increased limits
for these two categories, which not only extend
your limits but will allow you to obtain more
rehabilitation benefits if you need them
according to a medical assessment.
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Increasing Your Liability CoverageIf you are at
fault for an accident, your typical liability
coverage is 1 million. It sounds like a lot, but
in this day and age, a million dollars doesnt
reflect the reality of what kind of judgement
could be handed against you.If you have a high
personal net worth, and the person you hit cant
get more than a million from your insurance
company, they might come after you personally.
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Let This Guide Your Questions When You Talk To
Your Insurance ProviderI have to stress, once
again, that this information might change. If you
are reading this and its been awhile since it
was posted, they probably already have.Thats
why your best bet is always to sit down with your
broker and find out what you have and dont have
in terms of coverages. And just like I always
advise if you have to speak to a lawyer, ask lots
of questions.
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Less coverage does equal lower premiums, but
theres always a cost, particularly if you end up
having a car accident and suffering
injuries.And, as always, if you are in a car
accident, stay calm and ask for help. See a
doctor, keep your receipts and call a lawyer.
http//derekwilsonlaw.ca