Who should YOU list on your automobile policy?

So, your sister is coming to visit you for a week or so and she may be driving your vehicle. You may wonder; "Should I call the insurance company to list my sister as a driver on my automobile policy?" 

For most insurance companies, the answer would be; No.

It is important to understand that you may not be required to list a driver on your automobile policy if you are lending your vehicle to a licensed friend or family member. Same reasoning applies to a short term visitor in your home who may loan the vehicle on one or two occasions during their visit. But remember, when you lend your vehicle.... you lend your insurance. If the driver has an accident while driving your car, the incident goes on YOUR insurance record.  

*Important*

"It is stated clearly in your automobile policy that as the policy holder, you have an obligation to advise your Insurance Broker of any driver(s) that have regular or frequent use of your vehicle."

If you do not disclose a driver either on the application or after your policy has been processed, it could mean major problems for you down the road when you may have to put in a claim. Your claim could either be denied or your policy could be cancelled all together.

Here are some examples that outline who should be listed as a driver on your automobile policy.

* Remember every insurance company may have different regulations so we strongly recommend that you speak with your automobile insurer* 

1.  ANY licensed drivers living in your household
2. The registered owner of the vehicle
3. ANY licensed driver who has frequent or regular use of the vehicle. For example, driving the vehicle to school or to work several times a week
4. ANY person using your car as a part of a car pooling arrangement 
5. A car that is insured on your policy, but is garaged elsewhere with another driver; this driver must also be named on your policy. For example, your child who is away at school and using your vehicle while he/she is studying. 

Please contact your local broker for any questions you may have concerning who you should list on your automobile policy.

Safe Driving! Visit our website for more tips

Written By Geneviève St-Denis, Account Executive,
Rhodes & Williams Insurance Brokers.







Recent regulations prohibit Canadians from driving in Florida - Insurance Implications??

Thursday morning February 14th, news hit that Canadians were technically no longer able to operate a motor vehicle in the sunshine state of Florida. Legislators passed a law that would require non-U.S motorists to have an international driver’s permit in addition to their regular driver’s license.  

Immediate action was taken by the federal government in order to ensure Canadians driving in Florida were protected. A decision has been made to suspend the law for all Canadian drivers. However, in March, the Florida Legislature will reconvene to view the legislation.

The Florida Department of Highway Safety and Motor Vehicles are proposing that Canadians should be given an official exemption from the law, which was originally put in place to help law enforcement interpret foreign licenses in other languages.

Following the announcement of the suspension, the Insurance Brokers Association of Ontario confirmed with the majority of insurance companies that they will not deny coverage.  Please contact your local insurance broker to specifically understand how your insurer will handle this situation.

Written by Geneviève St-Denis, Account Executive, Rhodes & Williams Insurance Brokers

The Dangers Of Driving

"..driving alert is driving safe"

A recent tragedy has hit close to home. A tour bus crashed killing seven Canadians on a trip from British Columbia to Las Vegas. The bus, carrying 47 passengers, crashed near a cliff after veering off icy roads.

Image by "Salvatore Vuono" from www.freedigitalphotos.net

The Vancouver travel company is now being sued by two survivors of the accident.  They claim the bus driver violated American federal laws by working 90 to 100 hours during the first eight days of their trip.  They indicate in the lawsuit that the tour company’s driver seemed extremely fatigued and ignored evident dangerous road conditions.

After the driver lost control, the bus spun and crashed through the guard rail. There were 9 fatalities and 38 others were hurt.  Although this is an extreme case of getting behind the wheel of a vehicle without acknowledging ones mental and physical capabilities to drive, this is a subject that relates to all Canadian drivers. 

All drivers should be aware of their mental and physical state before operating a vehicle. Being overly tired and drowsy is a “silent killer”.  Drivers’ nodding off while at the wheel leads to fatal accidents. Some of the signs you should look out for besides the obvious ones of yawning and heavy eyelids, are daydreaming, missing road signs or exits and feeling irritable and restless. If you experience any of the mental or physical signs of exhaustion, pull over to the side of the road immediately and phone a relative or a friend to come help. In the event that you are out of town, you can call a tow truck to come help you in this type of situation.

And remember, driving alert is driving safe.

Written by Geneviève St-Denis, Account Executive, Rhodes & Williams Insurance Brokers

Do you have signage on your vehicle? Here’s what YOU need to know!

Although signage on a vehicle may indicate that it is being used for business purposes, signage does not determine the classification of the vehicle.  The broker or insuring company would typically determine the correct use of the vehicle during the quoting process. 

Making sure your vehicle is being properly rated is very important regardless of signage. If you’re using your vehicle for business purposes but fail to disclose the correct use of the vehicle to your broker, this could result in a potential claim being denied.

Here’s an example to help illustrate this point; 

A stay-at-home mom has a small home-based business baking sugary sweets. She uses her vehicle to deliver her homemade treats to local businesses. Her vehicle is only being rated as personal use. If she were to be involved in an accident while commuting to a location to deliver her baked goods, the insurance company may deny her claim seeing the vehicle wasn’t properly rated. In this case, her vehicle should have been rated for occasional business use. The annual mileage used for business purposes will also determine the correct classification for business use of the vehicle.

Contact your local broker for any questions concerning personal or business use on your vehicle.

SINKHOLE INSURANCE!!! GET YOUR SINKHOLE INSURANCE HERE!

The recent sinkhole on the 174 east, close to Orleans, has generated some interest about insurance…… yes, you read that right - INTEREST ABOUT INSURANCE!.  Various comments appeared on twitter and facebook like a few samples below:

Facebook comment

Sooooo…. Let’s see if we can shed some light on the situation.  Remember that every situation is unique, you should talk to your insurance broker, and we only know the details about this specific case, that we can read in the newspaper.

Although the ultimate decision about claims rests with the particular insurance company, in this type of situation, we would expect the claim would handled under the loss or damage section of the policy as a collision.

If the person in question did not have collision insurance at the time of the accident, they would be financially responsible for the loss of the vehicle. They would also have to pay for their own rental vehicle (if required) and have to purchase a replacement vehicle at their own expense. They would also be responsible for the costs involved in recouping the lost funds from the province, if that was an option they wished to pursue. This would take time and money.

If the person in question had the full, appropriate physical damage coverage on the policy at the time of the accident, the insurance company would cover the loss of the vehicle, according to the terms of the insurance policy. They would also pay for a rental vehicle (assuming that coverage had been purchased), giving the client sufficient time to find a replacement vehicle. The claim would be subject to the policy deductible.

Since the collision was a single car accident, it is technically considered to be an at fault claim. However, in situations such as these, the outcome of the claim would be handled on a case by case basis. A thorough investigation would take place in order to properly negotiate the settlement with the claims adjuster.

If the insured sustained injuries (which fortunately in this case, I understand that they were only very minor) from the accident he/she would be entitled to compensation under the accident benefits portion of the policy up to a certain limit. The option to increase accident benefits on an automobile policy is available for all licensed drivers in Ontario. Increasing this coverage comes with a minimal cost but could help protect you and your loved-ones in the event of a catastrophic accident.

Digging for Holes

It might sound a little funny if you were to tell someone that you are busy “digging for holes” but that’s a skill you practice everyday if you own a business. Part of the boss’s job is to snoop around and identify any holes in your operation; issues which could seriously harm your company.... Read the rest of Lorne's article at http://www.ourhomtetown.ca/ .

If I get pulled over in mum’s car (she has insurance, I’m not on it) do I get in trouble? Will rarely drive car."

I was recently asked a question on Twitter:

"Twittersphere: insurance?. If I get pulled over in mum’s car (she has insurance, I’m not on it) do I get in trouble? Will rarely drive car."

The direct answer to this question is that you do not need to be listed on a car insurance policy to be able to drive that car. You may borrow a friend’s car, family member’s car, etc. and it is not a requirement that you be listed on that policy. If a police officer pulls you over, what they are going to want to know is that there is insurance on the car. If proof of insurance (the "pink slip") is in the car, the police shouldn’t care if you are listed on the policy or not. There are always exceptions and qualifications to this statement. Obviously, you need to have been given permission to be using the car, and you need to be licensed to drive. Also, there is sometimes an exclusion put on a policy (called an OPCF 28a) to exclude specific drivers (which means if someone is excluded under a 28a, they would not have coverage should something happen to them or the car while driving it). Always discuss your specific situation with your Insurance Broker to make sure. This answer is general in nature and to make sure you are protected (and won’t get in trouble) in your specific situation, always talk to your Insurance provider (or your Mum’s in this case).

That all being said, it is important to ensure full disclosure by the person who does take out the insurance policy. One of the questions on an automobile application for insurance is, "Are there other’s in the household licensed to drive?" Most Insurance companies will want all drivers in the household listed on the policy, regardless of the frequency of use of the car. Make sure you answer all questions truthfully, and give full details so your insurance broker can help you find the best options specific to your situation.

One last point – there are circumstances where it would make sense to be listed on a family member’s insurance policy. It creates an insurance history and can help keep your premium’s down when you do get a car. Talk to an insurance broker and let them determine the best plan for you!

Insurance Fraud ... Be very AFra"u"d

There has been a lot in the news recently about the cost of insurance in Ontario.  Immediately I started seeing articles with many truth's peppered throughout the article filled with media hype and finger pointing.  One thing that is true is that insurance fraud is costing all Ontario insurance customers a lot of money.  Insurance Brokers have been talking about this for a long time and working on solutions.  Hopefully the most recent press will help draw attention to... and solution for the insurance fraud problem.

Below is a recent article by Deputy Senior Vice President of Claims for Intact Insurance, Sharon Bridge, regarding insurance fraud.  Intact is one of the many insurance companies with whom Rhodes & Williams Insurance Brokers can place insurance, if it is the best choice for our clients.

Detecting Insurance Fraud Controls Claims Costs

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Deputy Senior Vice President, Claims Sharon Bridge explains why and how Intact Insurance, the industry and the Ontario government are working together to reduce abuse of the claims system.

With catastrophic weather events on the rise – like April’s severe hailstorms in Thunder Bay and Stratford, wild windstorms in the Ottawa and Niagara regions and Goderich Tornado – the last thing consumers need is added costs due to increased auto insurance fraud. But that’s exactly what’s happening in Ontario.

“Auto insurance fraud has been on the rise, particularly in the GTA,” says Sharon Bridge, who’s been leading Intact’s claims transformation in Ontario over the years. “The previous accident benefits system led to the prevalence of increased abuse committed by various parties involved in the claims process and increased the cost of injury claims costs. These trends adversely affected consumers as premiums rose.

”Abuse and fraud is an issue that affects the cost of protecting people, so we’re tackling it head on. Our proactive approach to fraud management involves investing in people, technology and infrastructure to help manage, detect and prevent fraudulent or improper activities. It’s an approach that we developed with the customer in mind. Putting the customer at the centre of everything we do is what the Intact Insurance brand is all about and these actions help us get customers back on track as quickly as possible by ensuring that they get the right kind of treatment by the right practitioners for full and fast recovery.”

“Tackling fraud is a complex, long¬-term fight, but with the government willingness to take action, it’s one we intend to win. The Ontario Auto Reform, adopted last year, gives us more time to respond to treatment plans and identify inappropriate and abusive requests. What we need in the longer term are greater consequences for the perpetrators of fraud and abuse.”

The industry is working together to fight the problem of fraud and limit the impact it has on premiums.

Intact welcomes the establishment of the Ontario government’s Anti-Fraud Task Force that has made recommendations about detection, investigation and enforcement. “The task force is a step in the right direction given that fraud is omnipresent, puts innocent people at risk and increases insurance premiums,” Bridge continued.

Did the Earth Move for You Baby?!?!?

Well, unfortunately, the tag line on this blog is not what you think.

We felt an earthquake yesterday that rattled building from Sudbury to Quebec City, and as far south as New York City. The Epicentre was about 55 kilometres north of Ottawa. I have not heard of any major damage or injury in this area (although I have heard rumours of minor damage, as well as some more serious damage in Quebec).

I am not trying to be exploitive (I heard that “I survived the 2010 Earthquake” t-shirts were on sale online before the day was done!), but feel obligated to advise that I have been trying to get the word out for a long time, that earthquake is not covered under your standard home insurance policy. Most people weren’t listening or weren’t interested in buying this coverage because they felt it would never happen here. People are listening now, when I point out that there is a fault line in Ottawa and serious earthquakes can occur. If clients choose not to purchase this coverage, that is their choice, but I need to do my best to make sure that they are aware that it is not covered under a standard policy, but that the coverage can be added on to that policy.

We buy insurance to protect us in case of disaster, and an earthquake is one of a few potential disasters that the vast majority of people don’t have insurance protection for. Below are links to a few sources of information about Earthquake and the risks in and around this area.

Links

• OttawaCitizen/Earthquake
• Interactive Map and feature about Quakes in the Capital
• Globe and Mail National article about June 2010 Earthquake in Ontario-Quebec
• Rhodes & Williams Insurance Earthquake Insurance Page
• Earthquakes Canada page from Natural Resources Canada
• Earthquake Preparedness Document from the Government of Canada

Rental Car Insurance Coverage - Are you Covered

If you have rental car coverage on your automobile insurance policy, and you go and rent a uhaul cargo van or pick-up truck - are you covered? What do you think?

This is not an easy question and is misunderstood by most. The safest route is to talk to your insurance broker before assuming anything is covered ... that is what we are here for. That being said, here is the basic answer:

The rental car coverage on your auto policy is designed for when you rent a personal vehicle, and not for most trucks and vans that you might hire for a move. As a result, there are some exclusions that would apply. Here are the main ones that would apply:

1. The coverage would not apply to any vehicle with a gross vehicle weight rating over 4500kg (that would exclude most moving trucks and large vans) (check your specific policy wordings to confirm exclusions)
2. The coverage would not extend to carrying passengers or commercial use of the rented vehicle, in case you were running errands for your business.
3. The coverage is restricted to only those people named on the underlying policy.
4. Note that there is also a dollar limit to the coverage that might be an issue.

So as mentioned, every situation is unique, so give us a call to make sure.

Of note, one of the recommendations put forth in the Report on the Five Year Review of Automobile Insurance, presented to the Financial Services Commission of Ontario is as follows:

"The superintendent intends to amend the OAP 1 to provide a limited amount of coverage for vehicles with a GVWR over 4,500 kg's."

This is just a recommendation and has not been adopted, so ensure you are properly covered.