Auto Insurance Archives - Cade Associates Insurance Brokers Limited

Accident Benefits – Understanding Auto Insurance

Ross Fraser — Tue, 15 Jan 2019 19:03:16 +0000

Accident Benefits

The Ontario Automobile Insurance policy includes Accident Benefits coverage, which responds when you or your passengers are injured in an automobile accident. In 2016, reforms to the Accident Benefits portion of the policy were introduced by the provincial government and now affect all policies. Standard Accident Benefits are those provided by the basic policy, with optional increased or additional benefits available for purchase.

We encourage you to review the Accident Benefits provided by your policy and consider additional benefits available for purchase.

Medical, Rehabilitation and Attendant Care Benefit

Medical & Rehabilitation: Reimbursement for reasonable, necessary medical and rehab expenses not covered by OHIP. If you have Employee Group benefits, the insurance provided by your employer responds first. Attendant Care: Reimbursement for an attendant to look after you at home or within a healthcare facility. As of June 1, 2016, payments are limited to 5 years for adults and 10 years for children (non-catastrophic).

Standard Benefits: $65,000 combined limit. Minor injuries are fixed at a maximum limit of $3,500

Optional Benefits:

Increase limit for serious but non-catastrophic injures to $130,000 or $1,000,000.
Increase limit for catastrophic injuries from $1,000,000 to $2,000,000.

Caregiver Benefit

Reimbursement to hire someone to care for your dependant(s).

Standard Benefits: Up to $250/week for first dependant, $50 for each additional dependant. Available in catastrophic injuries only.

Optional Benefits: Extend this benefit to respond to non-catastrophic injuries.

Housekeeping & Home Maintenance Expenses

Reimbursement for someone to carry out your household responsibilities. Standard benefits provide coverage only in the case of a catastrophic injury.

Standard Benefits: Up to $100/week. Available in catastrophic injuries only.

Optional Benefits: Extend this benefit to respond to non-catastrophic injuries.

Income Replacement Benefit

A weekly income of 70% of your gross income up to the weekly limit, beginning one week after the accident occurs which prevents you from working. If your annual income is higher than $30,000 you should consider purchasing the increased limits.

Standard Benefits: Up to $400 per week. Non-earners are eligible for up to $185/week limited to 2 years.

Optional Benefits: Increase the weekly maximum to $600, $800, or $1,000.

Dependant Care Benefit

Not provided in the Standard Benefits, this optional coverage provides limited reimbursement for additional expenses to care for your dependant(s) if you are employed and injured in a car accident.

Standard Benefits: No coverage.

Optional Benefits: Up t $75/week for first dependant and $25/week for each additional up to max $150/week.

Death & Funeral Benefit

A lump sum payout to your spouse and dependant(s) in the event of your death, with a separate lump sum for funeral expenses.

Standard Benefits: $25,000 to spouse, $10,000 to each dependant; up to $6,000 for funeral expenses.

Optional Benefits: $50,000 to spouse, $20,000 to each dependant; up to $8,000 for funeral expenses.

Indexation Benefit

Not provided in the Standard Benefits, this optional coverage adjusts the sum of Accident Benefit payments for which you are eligible annually as per the CPI of Canada over the course of time for which you receive benefits.

Standard Benefits: Not included.

Optional Benefits: Adjust annually to CPI.

Tort Deductible

The amount deducted from a settlement or court award for pain & suffering.

Standard Benefits: $36,500 deductible applies to any settlement.

Optional Benefits: Reduced $20,000 deductible is available.

Injuries – Minor Injury Guidelines, Non-Catastrophic & Catastrophic Injuries

Some benefits are activated only when an injury is ‘catastrophic’. While the revised legal definition for ‘catastrophic’ is complex, the criteria includes traumatic brain injury, loss of ambulatory mobility, loss of vision, etc., injuries requiring extensive care and medical attention. Minor injuries include sprains, strains, whiplash, abrasion, etc., insured to a maximum limit of $3,500. Non-Catastrophic injuries lie in the area between the Minor Injury guidelines and the Catastrophic definition.

Third Party Liability Insurance

Your policy also provides Third Party Liability coverage to respond to claims brought against you for bodily injury and/or damage to property of others caused by an auto accident arising out of the ownership or use of your vehicle. With the new changes and reductions in the Standard Accident Benefits, we strongly recommend you also consider purchasing increased limits of Third Party Liability coverage under your auto policy and/or purchasing a Personal Umbrella Liability policy.

Contact our office to discuss your existing limits of insurance or to purchase additional optional coverages.

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Cannabis Legalizaiton in Canada

Ross Fraser — Wed, 17 Oct 2018 08:00:07 +0000

On October 17^th, 2018 Canada became just the second country in the world to legalize the recreational use of cannabis. While the implications of this legalization will be wide-reaching and have yet to be fully realized, there are some important insurance implications that you should keep in mind.

Driving Safety

Impaired driving remains an illegal act, whether the impairment is caused by alcohol or drugs, and is the leading criminal cause of death and injury in Canada. With the legalization of cannabis, families are encouraged to discuss the dangers of drug-impaired driving with the same seriousness as drinking and driving has been approached in the past. New legislation allows Police to use approved drug screening devices, similar to their response when dealing with a suspected drunk driver. Remember that there is a zero-tolerance policy with respect to young and novice drivers.

For Auto Insurances purposes, a conviction for drug-impaired driving is comparable to a conviction for alcohol impaired driving. Both are considered Criminal Code offences and will result in significant premium surcharging or even declination of coverage. In no uncertain terms, driving while under the influence of any drugs or alcohol is unacceptable.

At Home

The new legislation allows Canadians to legally grow up to four plants per residence. Please note that this is a per residence limit and not a per person limit. If you are considering growing plants under the new legislation, please read the rules carefully to ensure you are in compliance. From a risk management perspective, growing can involve the use of specialized lighting or other equipment and licensed electricians should be consulted or used where necessary. As with any plant, growing inside your home can attract pests, which can cause a significant nuisance or even damage to the rest of your home. Cannabis plants in your home can also represent an allurement for ‘smash and grab’ style burglaries, meaning they should be stored out of sight and in a secured location. A monitored burglary and fire alarm system should be considered.

Each Insurer has their own approach to home-based growing, and we may be in touch with any specific underwriting questions or requirements your Insurer may have.

Host Liability

With the legalization of cannabis, hosts should approach service and consumption in the same manner as alcohol. As you may already know, whether you are hosting friends in your home or a work social event, you have potential liability for bodily injury or property damage to others, arising out of the negligent serving or distribution of alcohol. Hosts have been found responsible by the courts for the actions of their guests who consumed past the point of intoxication. If alcohol or cannabis will be consumed at your event, consider asking participants if they have a designated driver, ensure non-alcoholic beverages and food options are available, have cash on hand for cabs to prevent impaired driving, and keep a watch for over consumption or signs of intoxication. Call our office if you have any questions, or if you would like a quote for separate Host Liability Coverage for your event.

Travel

Despite some states having different rules, cannabis possession is still illegal under U.S. federal law – do not attempt to enter the United States with any cannabis. While there is some allowance while flying within Canada, cannabis is not permitted aboard international flights.

Insurance policies contain exclusions that apply when Insureds engage in illegal activity, so it is up to all of us to ensure we fully understand and adhere to the new laws of the land. To help, visit the following links:

Canada’s Cannabis Act Website – canada.ca/cannabis
Ontario’s Cannabis Website – https://www.ontario.ca/page/cannabis-legalization

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Young Drivers & Your Insurance Policy

Cade & Associates — Tue, 03 Apr 2018 17:04:53 +0000

You may have tried to deny it until now – but let’s face it, the kids are growing up. Just yesterday you were changing their diapers, and now they are on their way to driving your car.

Getting a driver’s license is a huge step towards adulthood – and as a parent, you want your child to enjoy this new-found freedom in the safest way possible. Arranging appropriate auto insurance is an important part of this process. Here a few things to keep in mind when your child starts reaching for the keys.

Who Gets A Policy:

In Auto Insurance, the policy follows the ownership of the vehicle. If your child will be driving an existing family car when they get their license, they are to be added as a driver on your policy. Your auto insurer does require that they be aware of every licensed driver in the home, so regardless of how often you plan to let your child drive, you must notify your broker of the new driver.

If your child will be the owner of their own car, then a new insurance policy will need to be created in their name.

There are advantages to both options. Typically, it is less costly to add a new driver to an existing auto policy. That said, if your child has their own policy, then, if they are involved in an accident, their claim will have no impact on your own auto policy and insurance history.

Tips for Young Drivers:

Insurance costs have historically been higher for young drivers. And, while the statistical likelihood of these drivers being involved in a claim is much higher in their early years of driving, there are several ways to help mitigate the premiums for these drivers.

Enrolling your child in an accredited driver education course helps equip them with the skills they need and reinforces safe driving habits. Insurers recognize this by offering a driver’s training discount.

Maintaining a clean driving record is crucial in minimizing premiums related to young drivers. Remind your child to obey the rules of the road and avoid any distractions. Texting and driving, in addition to being extremely dangerous, can result in a ticket just the same as speeding or driving through a stop sign.

Some young drivers have enjoyed the benefits of telematics solutions on their policies. There are several options in the insurance marketplace, offering policies which use apps or devices attached to the car to track certain factors in the operation of the vehicle, such as rapid accelerations or hard braking. These optional programs offer a means of applying additional usage-based discounting that reward safer driving behaviours with reduced premiums. They have the added benefit of providing the driver with active feedback throughout the measurement period, meaning drivers can see how they are driving and adapt accordingly to try to improve their discount!

This is a very exciting time for your child, but can be an overwhelming process for parents. It is most important to remember to instill in your child the best driving practices and safe driving education. More than helping keep insurance costs down, it should (fingers crossed) give you some peace of mind while they are on the road!

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Coverage Reduced on Ontario Auto Policies

Ross Fraser — Mon, 27 Jun 2016 19:12:25 +0000

The Ontario Auto Insurance Policy has changed, with some important reductions in coverage of which you should be aware. These changes impact every auto policy in Ontario on their first renewal on or after June 1^st, 2016.

ACCIDENT BENEFITS

Following this change, certain benefits on your policy will now have lower limits. For our clients, we will be maintaining on renewal the closest comparable benefits available in the new structure. However, it is important that all Ontario Auto policyholders take a few minutes to review the new schedule of optional benefits/increased limits and consider the potential need for changes to your policy.

In particular, we would call to your attention the changes related to the Medical Rehabilitation and Attendant Care Benefit. Prior to June 1^st, these were considered two separate benefits; one for Medical & Rehabilitation with a standard limit of $55,000 and another for Attendant Care with a standard limit of $36,000. These benefits have now been combined into one, with a single, lower standard limit of $65,000. This limit is available to pay those expenses associated with medical, rehabilitation and attendant care costs if you or your passengers suffer non-catastrophic injuries in an auto accident. We recommend you consider purchasing increased limits, with up to $1,000,000 available in the new model.

Prior to June 1^st, each of the separate benefits also carried a $1,000,000 limit for catastrophic injuries. Following the merger into one benefit, there is now a single $1,000,000 limit for catastrophic injuries. We strongly recommend you consider purchasing the increased limits, raising this limit to $2,000,000.

We strongly recommend that you speak with your broker to understand these changes and to consider requesting these increased limits.

THIRD PARTY LIMITS:

With the reduction in Accident Benefits available to injured parties from their own automobile insurance policy, there is a growing reality that the injured party may now more readily sue the ‘at-fault’ driver for additional funds once their own accident benefits are exhausted. We encourage you to consider the following to enhance your ability to respond to these legal actions:

Increase the liability limits available under your Automobile Insurance policy and/or;
Purchase a Personal Umbrella Liability policy, which expands coverage and increases limit of insurance.

Over the past several years, insurance companies have worked with the provincial government to reduce fraud and abuse of the benefits provided under the Ontario Automobile Insurance policy. As you have likely heard in the media, local organized crime and amateurs alike are fraudulently claiming over a billion dollars each year in accident benefits! The reduction in benefits has made little if any change to the Ontario Auto premiums. The Ontario government must make changes with respect to prevention, detection, enforcement and judicial enforcement in order to lower premiums and assist in the stabilizing of rates over the long term.

If you have any questions with respect to these changes, please do not hesitate to contact our office at (416) 234-9980 or at clientservices@cadeinsurance.com.

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Auto Policy Changes

Ross Fraser — Mon, 21 Mar 2016 13:01:29 +0000

The Ontario Government, as part of the 2015 provincial budget, mandated changes to the Ontario Automobile Insurance product. With specific reference to the Accident Benefits section of the auto policy, specific revisions are being made to the limits available for injury sustained in an automobile accident by yourself or your passengers. You may have already received a letter sent directly from your Insurer providing an introduction to these measures.

These changes impact every auto policy in Ontario on their first renewal after June 1st, 2016.

Accident Benefits are an important part of your insurance portfolio and should be carefully thought out by all auto insurance policyholders. While full details are available in the links below, we will be also be contacting you before your policy is affected by these changes in order to outline the specific impact on your policy and present options for your consideration.

DETAILS OF 2016 CHANGES TO AUTO INSURANCE POLICY

2015 Ontario Budget – Auto Reforms (Insurance Bureau of Canada)
Amendments to Automobile Insurance Legislation and Regulations (Financial Securities Commission of Ontario)

Please keep an eye out for our mailing about these changes to your policy. If you have any questions in the meantime, please feel free to give us a call at (416) 234-9980.

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UberX and Ridesharing

Ross Fraser — Thu, 17 Dec 2015 13:00:34 +0000

If you have ever considered using your vehicle for UberX, it is important to consider the insurance implications of this popular service. Most critically, if your vehicle is being used as part of the UberX program, please know that there is currently no protection available under a personal automobile insurance policy in Ontario. While the popularity of UberX cannot be denied, this lack of insurance protection can put UberX drivers and vehicle owners at significant financial risk.

In order for a private passenger vehicle to carry passengers for a fee (eg. Taxis, UberX, etc.), current legislation requires that the vehicle be licensed appropriately for that use. This does not apply to typical carpooling, where a driver carries fellow employees to or from work for compensation in the normal course of their commute.

If your vehicle does not have a special license to carry passengers for compensation (other than carpooling), then doing so constitutes a use of the vehicle that is not considered legal under Ontario auto legislation. Auto insurance policies do not respond to ‘illegal’ use of a vehicle, therefore, until legislation offers a licensing alternative for UberX, personal auto insurance policies are unable to accommodate UberX operations. If a vehicle has a special license to carry passengers for hire, then the vehicle may be insured for this operation under a commercial auto insurance policy.

Uber has confirmed that they carry an insurance policy, but the exact protection it provides is not clear and Uber does not make the coverage wording available to the public. While commenting that their policy provides contingent coverage for claims of bodily injury or property damage to third parties, Ian Black, General Manager of Uber Toronto, states: “Your personal insurance is primary coverage when driving uberX.” As noted above, a personal auto insurance policy is not applicable to UberX drivers, presenting potential coverage gaps when the Uber policy is based on the operator’s insurance as primary coverage.

We cannot emphasize enough that the use of your personal vehicle for UberX activity may lead to serious financial distress should an accident occur. Because your personal automobile insurance policy will not respond, any costs associated with vehicle damage, injury to yourself or passengers, or injury or damage to the property of a third party will likely be entirely the responsibility of the UberX vehicle owner or driver.

Passengers of UberX vehicles should also be aware – if the automobile they enter does not carry appropriate insurance, it is unclear what Accident Benefits coverage they can call upon if they are injured in the vehicle.

Despite its controversy, UberX and comparable services are here to stay. At least one major Insurer has already committed to working with Uber to create coverage to meet the needs of its drivers. However, until the government provides clarity with respect to licensing and insurance, please do not operate your vehicle as an UberX driver.
Fore more, click here for a notice from FSCO

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Getting Ready for Winter

Ross Fraser — Tue, 03 Nov 2015 18:00:30 +0000

With memories of the deep freezes of the last two winters fresh in our minds, we must all take the appropriate steps to prepare our vehicles and homes for the changing of the seasons. To help you spend more time thinking of warm fireplaces and hot chocolate, we have created a brief list of things to remember!

PREPARING YOUR VEHICLES FOR WINTER

Winter Tires – Winter tires should be near the top of your list when planning for winter. While all-season tires claim to be capable year-round, the soft rubber composition of winter tires allows for increased contact and therefore traction on the road during the cold of winter. Improved traction means better control and shortened braking distances.
- If you have Winter Tires for your vehicle, you may qualify for a modest discount from your insurer on the renewal of your policy. Generally, to be eligible for the discount, you must have a set of four tires specifically designed for winter (not all-season) on your vehicle from November to April. We recommend you keep your receipt for the purchase or installation of the tires, if the Insurer requests them. Winter tires usually have a lifespan of about 5 years, so be sure to get your tires inspected or replaced regularly. The average Winter Tire discount is about 2% – 3%. If your vehicle qualifies for this discount, give our office a call or email so that we can apply the discount on renewal.

PREPARING YOUR HOME FOR WINTER

Eavestroughs – Heavy snows can lead to a build-up of debris on your roof and a fast melt can test the drainage of even the most recently updated roofs. Be sure to clear out your eavestroughs of falling leaves and other clutter to minimize any backing up and potential leakage or drainage issues. Some home insurance policies include exclusions for water damage arising from the backing up of eavestroughs, so this maintenance is important. Be sure that all eavestrough drains run away from the foundation of the home as well.
Heating System – No one wants to come home to a home without heat in the winter. Now is the time for a maintenance check of your furnace or other home heating system. If your furnace is over 20 years old, it is even more important to have the unit inspected annually for the sake of safety and continued operation.
Fireplaces & Woodstoves – If you have a wood burning unit in your home, be sure to have the chimney inspected and cleaned regularly by a WETT-certified contractor. (www.wettinc.ca lets you search for a local contractor). During the significant power failure in Toronto in the winter of 2013, many homeowners found themselves turning to fireplaces that hadn’t been used or cleaned in years. This is extremely dangerous, as a buildup of residue in the chimney can cause a significant fire hazard. Regular cleaning and maintenance is key!
Driveways, Walkways & Sidewalks – With the snows of winter comes everyone’s favourite chore – shoveling! Be certain you have the tools necessary to maintain your driveways, walks and any sidewalks you may be responsible for clearing. Slip & fall claims are far more common in the winter, so ensure that your property is properly cleared and salted when necessary.
Prepare for Power & Service Failures – Recalling the power failures of the past few winters which left homes without power for several days, we have all learned it is best to be prepared in case this coming winter creates another power failure. Be sure that you have enough supplies to last at least 3 days. The Ontario Government has some resources available to help you plan for an emergency, including building a kit and keeping necessary supplies on hand. If your power does fail, pay close attention to your plumbing system. Once the temperature of a home begins to drop, the chance for freezing in pipes skyrockets with a potential for significant water damage when the pipes thaw and rupture. If you suspect your heat will be out for a while, drain your plumbing system completely including all appliances to prevent this freezing damage. Learn more about freezing pipes here.

Storing Seasonal Vehicles – Your summer cars, motorcycles, ATVs and other recreational vehicles are just about due to be put away for the winter. Conducting the storage maintenance routine specific to your vehicle now can prevent damage during the winter and make bringing the vehicle back out in the spring much easier.

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Changes to Ontario Auto Insurance

Ross Fraser — Tue, 20 Oct 2015 13:00:38 +0000

As a result of announcements made in the Ontario provincial budget for 2015, there are several pending changes to the Ontario Automobile Insurance product. In particular, there are several important changes to the Accident Benefits coverage in each Ontario Auto policy, which pays those costs associated with injury to you or your passengers in an accident. These are important changes that can impact you and your family – please take a moment to read through the changes:

Combination of Medical/Rehab and Attendant Care Benefit Limits
1. The maximum benefit level for medical/rehabilitation and attendant care services has been combined with a $65,000 limit. Previously, limits were $50,000 for medical/rehabilitation and $36,000 for attendant care. While this combined $65,000 limit represents a reduction in the overall limit, it remains the richest accident benefits product in Canada.
2. Policyholders will have the option to upgrade these benefits, up to a total limit of $1,000,000.
Reducing the Maximum Duration of Medical & Rehabilitation Benefits from 10 years to 5 years
1. A five year limit will apply to all medical & rehabilitation benefits with the exception of children claimants, who will have 10 years.
2. This five year limit remains longer than the claim duration available in other provinces.
3. Policyholders will have the option to increase this coverage.
Catastrophic Injury Definition Update and Change to Catastrophic Benefit Limits
1. Updating the definition of a ‘catastrophic impairment’, which triggers a new maximum limit of $1,000,0000 for Medical/Rehabilitation and Attendant Care services. Previously, the limit was $1M for Medical/Rehab and $1M for Attendant Care.
2. The government’s expert panel and the Superintendent of Insurance sought to change the definition to reflect updated medical knowledge and to provide a clear definition to apply in the case of serious injuries. In recent years, an unclear definition allowed many less serious injuries to be designated catastrophic, triggering these high benefit payouts and increasing the overall cost of auto insurance for all users.
3. Policyholders will have the option of increasing their catastrophic benefit limit from $1,000,000 to $2,000,000.
Non-Earner Benefits
1. The current six-month waiting period for non-earner benefits will be eliminated, with the duration of these benefits being limited to two years from the date of the accident.

There are other changes to the Ontario Auto product arising out of this budget, including the introduction of a “Winter Tire” discount in January 2016 for all Insurers. As more details on the premium implications of the optional benefits above and other changes to the policy become available, we will keep you informed.

For more details, visit:

2015 Ontario Budget – Auto Reforms (Insurance Bureau of Canada)
Amendments to Automobile Insurance Legislation and Regulations (Financial Securities Commission of Ontario)

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Drop it and Drive: Distracted Driving and your Auto Insurance

Mary Berg — Fri, 16 Jan 2015 19:42:20 +0000

Since October 26^th, 2009, the Province of Ontario has implemented and enforced a ban on the operation of handheld electronic devices while driving. The fine for infractions currently stands at $280 but recently proposed legislation aims to increase the maximum penalty to $1,000 as well as the deduction of three demerit points from your driving record.

Even as the law stands, the use of a handheld electronic device while driving will negatively affect your automobile insurance as it is considered a minor conviction.

The moral of the story? Drop all handheld electronic devices while driving and save emails, texts, and phone calls to when you are safely and lawfully in park! It’s safest (and cheapest) way to drive!

Further information regarding Distracted Driving is available through the Ministry of Transportation website: https://www.mto.gov.on.ca/english/safety/distracted-driving/

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How does a ticket affect your auto insurance?

Mary Berg — Fri, 16 Jan 2015 19:39:13 +0000

A popular misconception amongst Ontario drivers is that a minor ticket with no demerit points will not negatively impact their automobile insurance. This is unfortunately not the case. All moving violations from a speeding ticket to a distracted driving charge will influence your insurance.

Generally, if you are charged with a minor moving violation, your insurance premium will experience an increase. In order to mitigate this risk of premium increase, here are some helpful tips to help protect against easily avoidable tickets:

Always be sure that a valid pink liability card is on your person or in the glove compartment of the vehicle you are operating.
Be mindful of speed limit changes when driving.
Many non-highway roads on the way up north to the cottage have fluctuating speed limits, ranging from 80km/h in the country to 40km/h in the small towns you pass on your drive. Be sure to abide by these signs in order to reduce your risk of a ticket and to stay safe!
Program your GPS prior to starting your trip and go hands free with all electronics.
Many school zones now have signs that, when flashing, reduce speed limits to account for increased pedestrian traffic. So keep your eyes peeled for flashing lights and slow your speed!

As always, if you are interested in discussing any aspect of your automobile insurance policy, please feel free to contact us!

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