Your car insurance questions answered

Car insurance coverage can be complex, so we've answered some of the most frequently asked questions we get as insurance experts to help bring clarity!

1. What type of auto insurance do I need?

Automobile insurance coverage is mandatory in Canada. However, the types of policies and coverage minimums you legally require will depend on which province or territory you live in, meaning car insurance in Toronto will be different from car insurance in Edmonton. Regardless, your plan may include two or more of the following:

• Third-party liability car insurance
• Uninsured motorist insurance
• Accident benefits coverage
• Direct compensation-property damage
• Collision car coverage
• Comprehensive car coverage
• Accident forgiveness

2. Am I covered if I am the victim of a hit-and-run?

If the driver of the vehicle who hit your car cannot be identified, your claim will be paid out under the collision portion of your auto insurance policy and subject to your deductible (depending on your provider and their rules). However, if your auto policy does not have collision coverage, you may have to pay for the damages out of pocket. Read additional tips about what to do if you are involved in a hit-and-run accident.

3. What documents do I need when purchasing insurance coverage?

The documents you need for car insurance include:

• A valid driver's licence.
• Your vehicle identification number (VIN).
• Current car insurance policy number and renewal date.
• Your driving record over the last couple of years, including tickets or accidents.
• Make, model, trim, and year of the vehicle.
• Distance driven throughout the year.

4. What should I do if I hit a parked car?

Always attempt to locate the owner of the vehicle. If the driver cannot be found, you are obligated by law to leave written notice of the accident. Your note should be placed in a visible location on the car (usually under the windshield wiper) and should include your:

• Full name and address,
• Driver’s licence number, and
• licence plate information

5. Can fault in an accident be shared?

An at-fault accident occurs when more than two cars are involved in a collision. Depending on the fault determination rules in your province, fault in an accident can be shared among drivers involved. Insurance professionals, claims adjusters, police, and eyewitness statements will all be considered by determining fault to ensure fair compensation is provided to all parties involved.

6. Should I ever admit responsibility if I am in a car accident?

No. Your insurance company reserves the right to defend you following an insured loss. You should never admit fault in an accident until your insurer can review the file and determine how they would like to proceed. Download our helpful accident checklist and store it in your glove box so you can access it if needed.

7. If I settle a fender bender out of pocket will it affect my insurance?

Possibly. Even if you choose to settle damage with a third party without involving your insurance company, the third party has up to a year (from the date of loss) to file an insurance claim for damages to their vehicle, and up to two years for any injuries that may have occurred. If they file their claim before the deadline, their insurance company will notify your insurance company and your premiums could still be impacted. Talk to your BrokerLink broker for advice on your situation.

8. Will my first accident affect my premium?

Not necessarily. Several insurance providers offer first-time claim protection or accident forgiveness coverage as an add-on to your policy. Speak to your BrokerLink broker about your options.

9. Am I covered if items are stolen from my car?

No. Your auto policy covers only your car, not the personal property you keep in it. To have coverage for theft of items inside your car, you need to have adequate coverage through your home, condo or tenant's insurance. If you are not sure you have the right coverage in place, contact your local BrokerLink broker for a free policy review.

10. Will my auto insurance coverage cover me if I lock my keys in my car?

Yes, if your auto insurance plan includes comprehensive coverage or all perils coverage, you will be covered if you lock your keys in a car.

11. Does my car insurance policy cover towing?

Whether or not your auto insurance covers towing after an accident will depend on whether you voluntarily added roadside assistance insurance to your plan. Roadside assistance is an optional car insurance endorsement that can cover costs like towing, locked keys, flat tires, and more.

12. How can I lower my auto insurance premium?

Increasing your deductible, bundling your policies, purchasing insurance for multiple vehicles, participating in a UBI program and being a professional association or group member are just a few of the ways you could save on your car insurance rates. The best way to keep your premiums from increasing is by being a safe driver and reviewing more ways to save on car insurance.

13. Does my policy provide a rental car if needed

If you have an endorsement added to your policy, in the event of an insurable loss, such as a collision, hail, fire, theft or additional upset, you will be provided with a rental car for use while your vehicle is not drivable and while repairs are being completed. This endorsement has a maximum amount payable. In Ontario, the endorsement is an SEF 20, and there are similar endorsements in Alberta, New Brunswick, Nova Scotia and Newfoundland. Contact your broker concerning the limit of coverage you need.

14. Does carpooling affect my insurance?

Increasing the number of regular passengers in your vehicle can increase the likelihood of an injury and liability claim in the event of a collision. As the driver of a carpool, all passengers in the vehicle are granted coverage under your policy, whether they have their coverage or not. The type of car-pooling arrangement in place can impact your premium.

15. Am I covered if I lend my vehicle to a friend?

Yes, however, when you lend your car, you lend your insurance too. In the event of a loss or incident, your auto insurance policy will cover any damage. However, if you are deemed at fault in the incident, your policy premium could be affected by the claim for up to six years.

16. Can I be rewarded for good driving behaviour with a discount on my insurance?

Yes. Several insurance companies offer a Usage-based insurance (UBI) program, also known as telematics. UBI programs allow insurance providers to offer premium discounts for safe driving habits. Simply for continuous use of the app. Usage-based insurance typically monitors:

• Rate of acceleration.
• Hard braking.
• Time of day.
• Texting and driving.

myDrive by Intact Insurance is an example of a popular UBI program.

17. Does my age and gender affect my insurance premium?

Yes. Insurance costs are based on several driver and vehicle factors. In the following sections, we discuss each in detail:

Driver factors

Top driver factors include:

• driving record, including speeding convictions or tickets and claims
• experience – number of years licenced
• number of previous insurance collision claims
• vehicle use – daily and yearly mileage and business use
• Age, (this is a myth), gender – it’s not uncommon for males to pay a higher price than females

Vehicle factors

The crucial vehicle factors are:

• Year, make and model of vehicle
• Location (postal code)
• Automatic braking or reactive braking systems
• If this type of vehicle is frequently stolen
• If the vehicle is a popular model on the road
• Any modifications to the car, affecting the drivability
• Crash safety ratings

18. Does taking a driver’s education qualify me for insurance discounts?

Yes. New drivers who complete a government-approved driver’s education course successfully help drivers save on their car insurance, with a driver training certificate discount. Companies value the safe driving habits taught during driver’s education classes and will reward you with a discount. Remedial driver education courses to restore points are not considered for discount purposes.

19. Do speeding and traffic tickets impact my insurance?

Yes. Any time you are convicted of a traffic violation, it will remain on your driving history for three years. Because you need car insurance each year, you can expect your insurance rates to increase in the years following your offence. This includes minor offences such as speeding tickets or major offences such as reckless driving or driving under the influence.

Contact BrokerLink for a quote today!

At BrokerLink, we’re here to help insure your vehicles, home, business, recreational items, or pets with the best coverage possible. You can reach us by phone, email, or in person at any one of our convenient locations. No matter how you choose to get in touch, a BrokerLink insurance broker will be happy to assist you. You may also use our free online quote tool and get a competitive quote in a few minutes!

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