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Sept. 14, 2002.
HERE ARE 10 TIPS for
saving money on property and car insurance in these days of rising prices.
- Buy a valid policy: A major loss could
put you in debt for a lifetime if you buy a bogus policy or you do not
buy insurance at all. A recent police blitz found 29 Ontario
drivers who lacked auto coverage, an offence that carries a minimum
$5,000 fine. The Financial Services Commission of Ontario warns against
buying coverage over the Internet from unlicensed barter companies.
Check if your agent and company are licensed. Ontario
residents may call 416-250-7250 or 1-800-668-0128 or go to http://www.fsco.gov.on.ca on
the Internet.
- Shop widely: A broker will only
represent a handful of companies, while agents only represent one
company. So you need to call around to check prices. Consumer's Guide To
Insurance at 416-686-6399 or on the Net at http://www.insurancehotline.com
will give you the best rate from more than 30 home and auto insurers.
The service is not perfect. You can vary a few policy features to see
the impact on prices but, for example, you cannot omit collision
coverage on an old car to see what you would save. Nor can you learn
about discounts for also insuring your home or more than two cars. You
also cannot get information on quality of claims service.
- Check for discounts: Companies
will offer varying discounts for retirees and clients who renew their
coverage (5 to 15 per cent), for drivers over 50, for multiple policies
or vehicles, for installing alarms or other safety devices.
- Ask: What if? Some companies will raise
premiums by more after your first at-fault claim than others will. A
company may be cheapest for a driver with no claims, but among the most
expensive for existing clients with one claim. So chose your insurer
carefully. All insurers will charge a new customer with one recent claim
more than an existing customer.
- Chose a high deductible: The
more risk you assume yourself, the lower the price of coverage. A check
with Consumer's Guide found a 4 per cent saving for moving from a $300
deductible to $1,000 on collision claims for a 2000 Ford Focus driven
for work in Toronto.
- Get the right vehicle: Some
cars are more attractive to thieves, more costly to repair and more
commonly involved in accidents. A domestic station wagon will be cheaper
to insure than an imported coupe. Vans are cheaper than sport-utility
vehicles. Some coupes are cheaper than others. Before buying a new car,
check http://www.vicc.com for
an indication of which models should be cheapest to insure.
- Put safety first: This may sound
trite, but you will have fewer accidents and pay lower insurance rates
if you take greater care. Think before you speed, barge into traffic,
tailgate, run yellow lights, venture out on stormy nights, skimp on
regular maintenance or leave the doors on your car or home unlocked.
Driving infractions will raise your rates for three years, at-fault
collision claims for six years.
- Prepare young drivers:
Some insurers offer discounts to young drivers who take driver
education. But don't assume your children are ready for the road.
Learning to drive takes time and practice. Safety studies suggest the I
Promise Program, which has parents and young drivers sign a contract on
safety with each other and post a snitch-line phone number on their
cars, has a better chance of influencing behaviour. Dominion of Canada
General Insurance Co. offers clients a one-time $40 discount to cover
the cost of joining the program. Get information at http://www.ipromiseprogram.com.
- Minimize risk: You could reduce the
risk of small household claims by protecting electronic devices from
lightning or other power surges. Those little power bars with fuses may help,
but may not be enough. Wil-Can Electronics Canada Ltd. of Brampton
sells a single surge-protection device that will protect all electrical,
telephone and cable lines in your home for $358.20. The company offers a
15-year warranty, and accountant Kenneth Bell says Wil-Can has been
profitable and well financed for the five years he has audited the
books.
- Be honest, punctual: Your
insurer can refuse to renew your policy if you are found to have
withheld information relevant to setting rates, or if you pay late more
than once. Other insurers would then be unwilling to take you on, and
you could have to pay exorbitant rates with the Facility Association,
the insurer of last resort in Ontario.
Now got to: Parent-Teen Safe Driving Contract
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