Canadian Car Insurance

It’s been a little over a year since auto insurance reforms were enacted in the Canadian Province of Ontario. The revamped Insurance Act went into effect on Wednesday, September 1, 2010. Critics of the auto insurance reforms claimed that under the new provisions of the Insurance Act coverage would be reduced, while the cost would stay the same or even increase. A year after the Insurance Act went into effect, politicians had hoped that the reforms would become an issue at election time, although the Liberal Party of Ontario prevailed and the Insurance Bureau of Canada congratulated their re-election.

In the three years that lead up to the reforms, auto insurance rates in Ontario had increased substantially. In 2007, rates raised an average of 0.55 percent, while in 2008 they climbed 5.59 percent. When the Financial Services Commission of Ontario approved an average rate increase of almost 9 percent in 2009, drivers called for revisions. The Insurance Act of 2003 contained provisions for reviewing auto insurance rates every five years. More than 40 reform proposals were formulated by November of 2009, approved in March 2010, and enacted in September of last year.

The reforms were directed at streamlining the process of insuring motorists in Ontario, offering more choices and stabilizing the rates of auto insurance. A notable effect of the reforms was the reduction of coverage. Post-reform standard auto insurance policies now offer $50,000 in medical benefits, instead of $100,000. Rehabilitation and home care benefits have been cut to $36,000 from $72,000. The limit for catastrophic injuries is $1 million, but critics have pointed out that only one percent of auto-related injuries in Ontario actually qualify for such benefits.

More than 60,000 motorists in Ontario are injured in road traffic accidents each year. Twenty percent of accidents result in injuries, for which benefits are capped at $50,000. The bulk of the injuries are of the minor sort -bruises, sprains, strains, and minor trauma. After the Ontario auto insurance system was reformed, coverage was amended to set a benefit limit of just $3,500 for minor injuries. The new lowered benefits aren’t just the lowest in Canada, they are the lowest in all of North America.

Critics of the reform point to the windfall profits it has brought to the insurance companies. Ontario-based Co-operators General Insurance Company recently reported a gain in consolidated net income of $6.2 million, compared to a net loss of $8.9 million during the third quarter of 2010. In the company’s press release, Co-operators General Insurance pointed out that any losses incurred by payments of weather-related claims were offset by the “much-improved claims results in the Ontario auto insurance market.”

On top of the insurance reforms, the Liberal government in Ontario also established an Auto Insurance Anti-Fraud Task Force to combat the growing trend of complex and organized auto insurance fraud rings. Critics of the Liberal Party claim that reforms and the task force have done nothing to curb the rising premiums. The Financial Services Commission recently announced that rates had gone up an average 3.05 percent this year, and that the number of injury claims had increased as well despite the lower benefits.

Extra benefits are available to Ontario motorists who choose to pay higher premiums. Part of the reform initiatives is to offer motorists a greater range of choices. Since the reforms were enacted last years, fewer than two percent of Ontario drivers have chosen to pay for extra benefits.

Buying an auto is more of a necessity nowadays rather than a luxury. When you have to go to work every day on time, it is difficult to use the public transport always. You may want to travel by your own car in order to save more time. Thus buying a car is something that you require. When you already own a car there is another thing that you require first and foremost. This is auto insurance. You can get online auto insurance in the websites of many auto insurance companies. These auto insurance quotes can help you in deciding which auto insurance you want to purchase. Having auto insurance is mandatory in some states such as Alberta to drive a car. In other states though it is not mandatory, it is advisable that you purchase one for keeping your car safe and providing you protection if you cause an accident. Read on about the advantages that auto insurance can provide you.

1. Liability insurance coverage – When you cause an accident while driving you may cause severe property damage to the other party. An accident can also cause injury or death in its course. In all such cases you need to provide financial compensation to the other party to whom you have caused damage of any form. Most of the times you don’t have money to pay for such losses. In order for you to pay for such losses, government requires you to carry a certain amount of insurance to cover these losses known as Liability. Liability in other words can be defined as insurance paid for the damages or losses suffered by others for which you are legally responsible.

2. Accident benefits or bodily injury – Some governments, which include every province and territory in Canada, also require you to carry coverage for your own medical expenses and loss of income due to any injuries caused because of driving. Thus accident benefits is that portion of auto insurance which provides coverage for medical care and income replacement benefits to you, if you have been injured in a car collision regardless of the fact who caused the collision.

The above two are mandatory insurance coverage. You can also buy some optional insurance coverage that may help you to protect your car against collision and other mishaps such as theft, vandalism and damage due to natural calamities or animals.

* Collision coverage – This is an optional auto insurance coverage that provides you with financial compensation to repair your car if your car is damaged in a collision.

* Comprehensive coverage – This coverage insures your vehicle against loss or damage due to a number of miscellaneous causes such as theft, vandalism, fire, natural disasters such as windstorms, floods or damage by wild animals. This leaves out loss suffered due to collision or upset.

Thus you can see how the above coverage are extremely beneficial for you to save your auto and yourself when you meet an accident.

The US News Best Cars ratings for 2011 automobiles listed the Audi A8 as #3 in Super Luxury Cars, the BMW 7 Series as #3 in Luxury Large Cars, and the Mazda MX-5 Miata as #1 in Affordable Sports Cars. Those are the three cars discussed below.

When gaining insurance quotes for these cars, it was assumed they were for a 23-year-old male with a good driving record, the same insurance since 18, and living in the M4Y 2Y5 postal code. All quotes were for deductibles of $500 and liability of $1,000,000.

Canadian Money

Most auto prices were quoted in U.S. dollars, so the Canadian dollar amount is a result of using a current daily conversion rate. Insurance is in Canadian dollars.

Audi A8

This auto is fairly decent on fuel, has excellent suspension, and is filled with the latest technology. Some rivals are more powerful and trunk space is a consideration. It has a smaller trunk than other super luxury cars so if you take trips that require luggage, this may be a problem. The interior is luxurious, making long trips more comfortable. The price tag is between $77,426 ($74,964) and $83,272 ($80,624). Insurance runs between $3329 and $8236.

BMW 7 Series

If you are looking for a comfortable interior without sacrificing handling, this auto may be for you. The model 740Li has an extended wheelbase which allows more room in the back seat. An added feature for 2011 is a twin-turbo six-cylinder engine. If you are looking for luxury, Bluetooth, ten-speaker stereo, or leather, this may be the car for you. The price varies greatly, starting at $43,559 ($42,173) and spiralling to over $137,000 ($132,649). Insurance quotes start at $3825 and go up to $9281.

Mazda MX-5 Miata

This has been picked by US News as the 2011 Best Sports Car for the Money. Most are happy that it is like the 2010. It is noted for its ease of handling, great fuel mileage, and the fact that it holds the value longer. One great advantage is the fact that the hardtop is retractable. This is an excellent value at between $22,154 ($21,450) and $28,330 ($27,429). The insurance quote were between $2716 and $6321.

Cash for Your Car

With the many online websites offering you cash for your car, you may be better off selling your car instead of trading it in. Explore those possibilities before you buy.

After reading an interesting piece out of The Globe and Mail on discriminating insurance practices in the EU based on gender or sex, I can only imagine choosing cars that may be deemed cheaper to insure altogether as a way to fight back, until the times catch up with everyone!

It is interesting to note that the article states that women drivers are safer, yet still pay higher insurance premiums than men under similar conditions and driving records. Although, there was no clear indication as to why this is the case, comparisons were stretched along other lines that served other types of insurance but nothing that really related to the unfair insurance practice of charging more for females, in any age bracket, then males. So maybe the key to getting fair insurance rates is to select cars cheaper to insure.

In effect, this would be vehicles that are assessed by the car insurance industry as low risk vehicles. Examples would be minivans, wagons and anything deemed a family type car. Drivers of these vehicles are often projected as more responsible, non-aggressive and considerably more cautious with babies or the entire team in commute with the average soccer mom on board.

Another example would be older models, excluding classics which could be considerably higher to insure, and less expensive reliable sedans. The idea is that if you drive an older car that is really only good for getting from point A to point B, then the likelihood of being in high risk traffic is considerably less – think basic commute.

As with lower priced sedans, these tend to be fuel efficient models that are often times, driven by pre-family individuals of higher income brackets and similar profiling. More importantly, however, is if it looks sporty or flashy the image is going to rub off on the driver as far as insurance companies are concerned, pushing the insurance rates up for drivers of these types of vehicles – regardless.

So bottom line, the idea is to avoid flash, fast and expensive models and choose cheaper vehicles to insure that they are “industry approved,” as safer and lower risk rides. Discriminatory car insurance legislation? Sure, but get equal insurance premiums for cars that are cheaper to insure; invest in auto’s like minivans, station wagons and older, fuel efficient cars that pose little if any threat to car insurance agencies.

Consider the journey and you have to give some kind of trophy to each car company earning a parking space on the Top 10 Car Brands in the USA List, compiled by Kanetix.ca’s quote comparison service.

Honda gets the checkered flag, because somehow it’s number one. Honda has come a long way from the introduction of its first chain driven sport car 1963 to producing the sophisticated Acura, and becoming the major global player it is today.

Toyota, number two on the Top 10 Car Brands List, first traded under the name “Toyoda,” which means “fertile rice patties” in Japanese and Chinese, and then later “Toyopet” which didn’t resonate in the American Market, and was changed to Toyota in 1957.

Wave a flag and pat Number 3, Ford, on the back. While other American car companies; General Motors, with number 4 and 5, Chevrolet and Pontiac; and Chrysler, with number 7 Dodge, were begging for government bailouts, Ford stood fast and independent and sits above its in-country competitors on the Top 10 Car Brands List.

Number 6, Mazda, came to the US in 1967 touting its unique Wankel rotary engine, which lifted eyebrows, if not sales. Now Mazda sells 1.3 million cars a year and markets piston engines while keeping Wankels for the gifted eyebrow lifters.

Number 8, Nissan, originally Datsun, was drowning in $20 billion of debt when it signed a deal with Renault of France in 1999. The deal prospered both Nissan and Renault and keeps the Nissan name on the Top 10 Car Brands list today.

Number 9, Hyundai, the largest Korean auto manufacturer, drove onto the American stage in 1986 with a little technical help from Ford. Now its luxury models are being compared with German brands as some of the best in the world.

Volkswagon, Deutschland’s car for the people, holds on like a bug to last spot on the Top 10 Car Brand List. Beetles are back and so is the fine but reasonably priced German car market.

With more than 50 car brands available in the world today, and considering the shape of the struggling automotive industry today, making the Top 10 Car Brands list marks a major triumph of marketing, engineering and perseverance for each automobile company taking a space.
Congrats to the top contenders!

Allstate Insurance company’s recent ad campaign calls them the company that protects you from mayhem, and since 1931 they have been doing just that. As a provider of home, car and life coverage, the company has grown in to the second largest corporation based on incoming insurance premiums. Allstate Financial has expanded the organization’s scope by giving clients financial planning tools, like annuities, that give customers the advantage of keeping their assets consolidated. But, with any business, there are problems, and lately Allstate has had their fair share.

Banking giant, JP Morgan Chase, sold Allstate Insurance a group of mortgage-backed securities between 2005 and 2008, reported to be worth $750 million dollars. Now Chase is finding themselves the target of a number of lawsuits. Allstate is claiming that JP Morgan Chase was aware that the mortgages were high risk properties, and likely to fall through. During the financial crises that saw millions of homeowners and businesses losing money, Allstate saw their holdings almost wiped out, due to, according to them, misrepresentation and omission of information.

On a more humanitarian front, Allstate Insurance sponsored a “Charity Shoot” event, in conjunction with a minor league Indiana hockey team. A hockey fan, picked at random, would have one shot at making a goal, from a distance of one hundred seventy five feet, for a $50,000 donation to charity. Well, fan Richard Marsh made the shot, but was denied payment because of a rules violation. Although a second party insurance company is responsible for the payout, Allstate has withstood an online lashing from fans who are calling the insurance giant heartless. Rink owner Paul and Cindy Skjodt plan to make a donation to St. Vincent Heart Center, in an effort to calm the situation.

Insurance analysts are pointing the finger at Allstate executives for poor fourth quarter profits. Experts are blaming irresponsible spending on a massive advertising campaign, coupled with natural disasters like severe hailstorms in Arizona, which have caused an increase in claims. Although share prices have risen nine percent, Allstate is taking steps to increase prices, and ironically, the new ad campaign seems to be bringing in business.

It is true that many people take the day off to celebrate the New Year. However, according to a recent report from the National Insurance Crime Bureau, automotive thieves were hard at work during the holiday season. In fact, they are saying that more cars were stolen on New Year’s Day last year than any other holiday.
They go on to estimate that around 2,700 car thefts occurred. This means that as drivers we have to take some care to protect our cars. First, do not leave items of value inside your car. When we leave valuable things in the car it just adds to the reasons thieves want to steal it.

I am not sure that just taking the valuables out of the car will insure that the car does not get stolen. However, why give car thieves a reason to justify stealing a car. The next thing is to keep your car locked. Do you know that many cars that have been stolen have been left unlocked? Leaving a car unlocked is like telling a car thief: “Here is my car, please take it.” Once again, we are just making it super easy for the car thief to do his job.

Halloween was another time of the year when car thefts were reported high. Perhaps it is because people are starting to get their mind ready for the winter season or maybe people just are not thinking that a car theft could happen to them. As drivers we need to take more precautions to make sure when we come out to go to work, we have a car to take us there and back.

Restoration of and ownership of collector cars is quite a large hobby in North America. As with any other motor vehicle, collector cars need at least minimum car insurance, which in Canada is a mandatory liability insurance of $200,000 (or $50,000 in Quebec). There are many insurance options for the collector car owner, some of which are unique to this type of vehicle. As with any other cars, collector cars can be covered by minimum liability or some form of comprehensive coverage.

Insurance options that are unique to collector cars include forms of coverage with maximum allowed mileage, maximum allowed usage days per month and requirements to stay with the car at all times while in public. These options are often best for collector car owners because comprehensive coverage is often hard to obtain for a collector car because of its value.

I think that the car insurance options available to collector car owners meet most of the common owner needs. At the same time it does not seem right that it is so difficult for owners to receive the comprehensive coverage they want. The collector car specific coverage does not allow for a collector car to be an owner’s true primary vehicle. For the collector car owner who wishes to see his or her vintage car out on the open highways of North America there does not seem to be a viable insurance option. There should be an affordable comprehensive insurance option for collector car owners who want to actually drive their cars.