Ten Things You Should Know

Ten Things You Should Know Before Applying for Special-Risk Automobile Insurance

Your Insurance History
Know your insurance history including all of your policy numbers (in the past five years) and dates and details of your claims.  This information is easy to get.  You can ask your prior insurance companies for what’s called a “Letter of Experience.”  Most companies will mail you a copy of their own policy details within a day or two of your request.  If you are having difficulty in obtaining a letter, ask to speak with the insurance company’s Privacy Officer.  Every company has some one who is in charge of collecting personal information.

Insurance companies subscribe to a database giving details of all drivers in Ontario who are named on an automobile insurance policy.  You can obtain a free copy of what’s in your file by calling (905) 415-7452 or (888) 430-9906.

Your Licence History
It’s very important to know your driver licence details, too.  Through the Ministry of Transportation, you can request a Motor Vehicle Abstract.  This Abstract gives you information about what class of driver licence you have, the date you were licensed and the dates of any Highway Traffic Act convictions or suspensions in the past three years. 

You can order this report from the Ministry of Transportation on-line:  click here

Full Disclosure
Have the information listed in points One and Two (above) available when you shop for insurance.  An innocent omission of a claim on an application might end up costing you a lot more than you bargained for.  Forgetting to tell the insurer about an important detail could result in your policy being cancelled for “Material Misrepresentation” or “Non-Disclosure.”  If you have either of these on your record, your policy will see significant surcharges.

Work with Easyway
Let your Easyway Insurance broker work with you.  When we ask for further details, we are not trying to make things difficult for you.  We want to find the best deal on car insurance for our customers.  To do this, we need to put our applicants in the best possible light.  Sometimes more information is required for us to do our job. 

Buying Insurance Coverage
Purchase at least $1,000,000 Liability Coverage on your automobile. You might be tempted to save some money by requesting a lower liability limit.  This could be a very serious mistake.   Don’t risk your financial ruin for the sake of just a few dollars per month.

Making Claims
Think before you claim.  Insurance is meant to cover catastrophic losses.  If you are out of pocket just a few hundred dollars you might want to consider making the repairs on your own, (regardless of who is at fault!)  Insurance companies look poorly on drivers who have a frequency of claims.  The same holds true for scrapes and bruises after an accident.  Always get medical treatment if it’s required.  If you have run of the mill soreness from your seatbelt, a little rest and relaxation might be all that you need.  Use your best judgment. 

Higher Deductibles Can Save You Money
If you require Collision and Comprehensive coverage, select the highest deductible that you can afford.  There are some significant savings to be had by increasing your deductibles.  Lower deductibles cost more.
Facility rates are generally $2,500 higher than regular market so you should think twice before claiming a loss less than this amount.  If you think you can afford it, consider a $2,500 deductible.  It will save you money.  

Drive Smart
This one is commonsense – When you drive, try not to speed, stop for Stop Signs, and don’t drink and drive.  These are the kinds of convictions that are pretty good indicators of a future traffic accident.  Obviously, these are the types of convictions that insurance underwriters are looking for too.  Keeping these three convictions off your driver’s abstract is beneficial to you.  Also always wear your seatbelt and insist that your passengers do the same.

Buy/ Drive the Right Car
Choose and car with insurance in mind.  Make sure that the car is safe.  Maintain it well.  Make sure that the brakes and tires are in good condition at all times.  Foreign-built cars are generally more expensive to insure than domestics because their parts cost more.  If you drive a high performance car, expect to receive more attention from police.  This means you have to be a little more aware of speed limits.  Your performance car might also attract car thieves too.  You’ll need to make sure you park your car in busy, well lit places and consider installing an alarm system.    

Don’t Lend Your Car
Be very careful who uses your car.  Remember that it’s you who will be paying the higher insurance costs if the person you lend your car to has an accident with it.