Experts On Call Program

Most recently answered questions

1. Q:  We are contenplating a vehicle for our daughter. We have have been told that we would have to list her as the principle driver on a third vechicle but that rates would be cheaper if we kept that vehicle in our name rather than hers. Is that true?
   show answer...
   A:  close answer...

   Thank you for your question. You are correct that the third car would have to have your daughter listed as the principle driver. It will not necessarily be less expensive to register the car in your name though. Many companies will offer multi-vehicle discounts and multi-policy discounts to children who insure their vehicles in the same place that their parents insure their cars and home. One thing to consider is the liability issues surrounding the ownership of a car. When there is an accident and the driver who was at-fault is sued, the owner of the car is almost always named in the suite as well. If you were to register your daughter's car in your name, you would have the potential of being found liable as the owner of the car in the event of a serious lawsuit. If the vehicle is registered in her name, you have insulated yourself against that risk. Another thing to consider is the learning opportunity that comes along with owning your own car and being completely responsible for its upkeep and insurance. If your daughter is the registered owner, she would be the policy holder for the insurance and would be responsible for setting up the policy (which is a legal contract) and ensuring that the policy details are accurate. Many parents appreciate having their children take on this responsibility. Please let me know if you have any other questions.
2. Q:  My Husband was recently caught drinking and driving, and now my insurance is going to be cancelled, we have 2 different policies. Our Broker tells me that if we put all the cars(3) in under my insurance the rates will not go up is this true?
   show answer...
   A:  close answer...

   Thanks for your question. The only way for you to avoid having your insurance rates skyrocket would be to have you as the principal driver on all three cars. You would also have to exclude your husband as a driver on all three cars. To exclude him, you will both have to sign an Ontario Policy Change Form (OPCF) #28a. The OPCF #28a acknowledges that you both understand that he is not allowed to drive the vehicles and in the event that he does, there will be no coverage for physical damage to the car being driven as well as extremely limited liability and accident benefits coverage. If his license is suspended due to his conviction, then this should not be a problem because he's unable to drive anyway. I should also point out that if you have anyone else with a driver's license living in the household, you should have them listed on your policy as well. Typically, insurance companies need to know who is licensed and who might have access to the keys. Children living at home need to be listed unless they have their own vehicle and insurance. Most insurance companies will want to have the children listed as principal drivers if there are more cars than parents in the household. Each car should have a different principal driver. If you have any other questions, please let me know.
3. Q:  Hi, My car was vandalised and written off now my insurance company are suing me for the premium which I canceled after the car was written off is this legal?
   show answer...
   A:  close answer...

   Hi there, Thank you for your question. This is a tough one to answer without knowing more details. My initial thought is that you may owe the insurance company for what we call 'time on risk'. If your policy was in force from January 1 and was cancelled on January 31, you would owe payment for 31 days worth of coverage, plus a short rate cancellation fee. Typically if you cancel your policy at any point during the policy term, it will cost you approximately one month more. This is just a quick and rough estimation. Your insurance company will have a short rate cancellation table that would tell you exactly what percentage of the premium you owe for the number of days the policy was in force. I would be able to give you a much more accurate answer by knowing your policy details and payment history. Your independent insurance broker should be able to obtain that information for you. If you have any other questions, please let me know. Kind Regards, ~ Chris

Tip of the month

1. Have you properly protected your greatest investment?
   
   
   
   For most people, their house is the biggest financial investment they make. As a homeowner, it is your responsibility to ensure you have enough coverage to protect your investment and financial security. Your independent insurance broker will be able to help you by using an evaluation tool that will help to determine the rebuilding cost of your home. The rebuilding cost is different and independent of market or resale value.
   
   
   
   Did you know that rebuilding costs have inflated by as much as 60% over the past 5 years in some areas of Ontario…KW, Cambridge and Guelph are some of those areas!
   
   
   
   In order to obtain proper coverage, follow these tips:
   
   
   
   - Answer all of the questions your broker asks to the best of your knowledge / ability
   
   ~ Leaving out information for the sake of paying less in premiums can cost you more at the time of a claim!
   
   
   
   - A conscientious broker will inspect your home to verify relevant information and determine an appropriate limit of insurance
   
   
   
   - Make sure you notify your broker if you make any renovations
   
   
   

Ask this expert a question