subject: Auto Insurance: 5 Things You May Want To Know About Your Policy [print this page] Auto Insurance: 5 Things You May Want To Know About Your Policy
Anyone who has ever gone shopping for auto insurance in Ontario knows that getting a car insurance quote can be like pulling teeth - and no one likes the dentist. So, the next time you are looking for insurance in Toronto or any other major city, it's a great idea to ask about some of the "special features" that are offered by most major companies. Most people fail to realize that:
1. Your car is insured, but the objects inside it may not be
It shouldn't be a surprise that your insured vehicle(s) is / are covered in the event of an accident. However, what may surprise you is the fact that personal possessions you may be carrying with you are considered to be separate from the vehicle itself, not a factor in the value of the automobile, and therefore, outside the scope of the policy. The only real defense against this rather annoying part of your car insurance policy is to purchase additional coverage under your home insurance.
Now, if you're traveling with your computer, or a cell phone (and who doesn't, these days?), you may not even blink at the prospect of their replacement. But this stipulation also applies to things most people might consider "part of the car", like the GPS unit. So the next time you're in an accident, you may give thanks that the only casualty was TomTom - just don't expect your insurance to pay for his replacement.
2. You don't always have to sell yourself short
It is standard practice nowadays to be provided with a report of a vehicle's history at the time of purchase. While this works out great for the buyer, the person selling the auto might not be as thrilled as you'd expect, and there's a simple reason: If they've ever been involved in so much as a hard bumper-to-bumper smack, the car will have lost value, even if it wasn't their fault.
That translates into a loss at the time of sale.... or does it? You may not know it, but when you have an accident, whether it's a dent in the fender or a total disaster that leaves your car looking like a ball of tinfoil, you can call your insurance company, and while they're paying for your repairs, you can ask them to reimburse them for your future losses! This is called a diminished value claim, and while it can vary in availability and amount depending on your particular policy, it's worth asking for. After all, a buck in the hand is worth two in the bank.
3. Fluffy & Fido are good to go
Sure, if you have an accident, everyone in the vehicle is protected, driver & passengers alike. But what about those of us who treat our pets like one of the family? Well, get ready to purr, because some insurance policies will even cover vet's bills in the event of an injury to a pet during a collision. As with other features discussed here, availability & coverage amount will vary by location & policy type.
4. Slash costs by reducing payments
Did you know you can treat your policy like your credit card balance, and save money in the process? That's right! If you agree to pay your entire premium in one lump sum (or sometimes two), you can escape a hefty chunk of the fees you would otherwise be subject to. Ask your agent if your policy can be paid in this way.
5. The tax man cometh... But not for you!
Did you know that if you total your vehicle, your insurance might pay the associated taxes & fees? Good news, right? Right! It isn't a feature of every policy, or available in every province, but it's worth asking about. Let's face it, the last thing you want to worry about if the unthinkable should happen is whether or not you're liable for HST.
The bottom line is, your insurance agent can be your friend, and not just another bill collector. Now that you know some of the hidden gems of your policy, take it to your agent's office and see how much you can save!
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