11 things your auto and home insurer do not tell you
You are shopping for your insurance right now. But do you know how the car and home insurance works? Our insurance experts have put together a dozen facts you should know to facilitate your insurance shopping.
- Auto and home insurance brokers do not have access to all insurers
Contrary to popular belief, P & C brokers do not have access to all insurers on the market. They can request a car or home insurance quote only from a few brokerage insurers, whose numbers have dropped theatrically over the last 20 years. Therefore, if you want insurance quotes from direct insurers such as Desjardins, La Capital, SSQ or CAA-Quebec, you will have to do the same.
- Avoid claiming for a loss of less than $ 1,000
Remember that the purpose of insurance is to protect your financial situation in case of (big) problems. Damage insurance experts repeat it: no one should claim less than $ 1,000. You should be able to tap this amount into your emergency fund and instead keep your insurance coverage for big glitches. When adding the cost of the deductible (between $ 200 and $ 500, depending on the amount chosen) and the increase in the premium in the coming years, it is mathematical: it is not worth claiming.
- Take care of your credit report
What is your best asset for lowering the insurance premium? Your credit score! If he is good, so much the better! This will give you better home and auto insurance rates, as well as better rates for your mortgages, car loans,and personal loans. On the other hand, if your glory report leaves something to be desired, improve it by paying all your bills on time, including your monthly payments for cellular, electricity and credit cards.
- Shop your auto and home insurance regularly
Insurers regularly change their rates according to the claims they have paid. Before renewing, check the premiums of several insurers. Your present insurer may not always offer you the best price on the market!However, be aware that some insurers do not like “chronic shoppers,” those who change insurers every year because the issuance of a new insurance policy is a process that is expensive. These insurers could, therefore, offer you a “fidelity” discount based on the time you stayed insured with your current insurer.
- Solutions to find insurance if an insurer refuses to insure you
A criminal record, multiple claims in the last few years or a cancellation of auto insurance policy for non-payment? Know that you are not alone in having trouble finding an insurer. To make your life easier, contact a broker who will tour insurers specializing in “non-standard” files. Of course, expect to pay a higher premium, sometimes with fewer protections.
- Your location influences your insurance premium
An insurer distributing its products in Quebec could decide to avoid certain regions of Quebec. And it is perfectly entitled! For example, if you live in a village in northern Quebec, your choice of insurers may be smaller than if you live in Sherbrook. The insurance premium will also be higher because there are several things that work against you
- Avoid false statements and omissions when submitting insurance
The Civil Code of Quebec requires an insured to declare everything he knows that can significantly influence the decision of an insurer. Therefore, when buying an insurance policy, avoid false statements or omissions of certain items that could increase your premium. In doing so, you expose yourself to the cancellation of your contract or the reduction of the indemnity during a claim. Be aware that the majority of insurers record conversations with their customers. These records can be used as evidence in court to demonstrate that a client has lied.
- Concentrate your insurance at the same insurer
If you have a main residence in Quebec and a cottage in Ontario, consider choosing an insurer in both of these provinces. You’ll only have one call to make when you sign up for insurance policies, and you may even be able to take benefit of discounts if you add your vehicle insurance, for example. Good to know: some insurers in Quebec are not necessarily in other Canadian provinces.
- Insurance is based, among other things, on personal factors.
Do you find that insurers discriminate against you because your home insurance premium is more expensive than that of your neighbor, who owns a similar home? You are right! Insurance is discriminating, that is to say, that it is based among others on personal factors, specific to each. Do not take it personally! Generally.
- Replacement value or replacement insurance for your new car: what to choose
Depending on your driver profile, one option may be less expensive than another:
The new value is an additional protection that adds to your car insurance. Its cost, therefore, takes into account the value of the vehicle, but also your claims history, annual mileage, your credit score, etc.
The cost of replacement value is calculated on the value of the vehicle you buy. In short, if you have several recent claims in auto insurance, you will probably be much penalized when buying the new value. It is better than to evaluate the second option.
- Foster families and damage insurance
If you are a host family with several children with special needs and you are experiencing several refusals, you should look to commercial insurance. Your needs in auto and home insurance are more related to the needs of a company than to those of a regular family.