Author Archives: Stephen

1. Apples and oranges

   June 1, 2016 8:00 am Leave a Comment

   Have you ever asked someone how much they pay for their insurance? It’s not that uncommon a question but it’s only half the question and the other half doesn’t often get asked. The follow up question should be about what kind of insurance they have and unfortunately most people aren’t sure.

    

   Think of it this way. If you asked someone how much their taxes were you wouldn’t immediately feel that you weren’t getting a fair deal if yours were higher. You’d know that they likely had a different wage or property value which caused the difference.

    

   The idea for this article came from a recent conversation our office had with one of our clients. They had just sent us a request to cancel their insurance policy as they were going to save over $100 a year with the online quote they’d just received.

    

   It was an awkward conversation to have. Calling someone that had basically just fired us from being their insurance consultant but we felt they were owed one final piece of advice. We did a review of the new policy that had been arranged and discovered that it didn’t include a vital coverage.

    

   As their vehicle was over 3 years old the new insurance policy only provided claims settlement on an actual cash value which was about half of what the car had been purchased for. When it was purchased new for $45,000 we’d added a coverage that removed depreciation from claims settlements for up to 4 years after it was purchased. This coverage becomes more important each year as the value of the car goes down and each year the cost of this coverage goes up. On this specific renewal the cost of the coverage was over $150.

    

   That one coverage made the difference in the two policies but when it also can provide for an increase in a claim payment of over $20,000 it’s usually something our clients want to keep. The one in this example sure did.

    

   Now I’m not saying we’ll always be the lowest price but you need to know what you are paying for just as much as you need to know how much you are paying. Apples and oranges costs are different and you can’t just assume they are all the same.

2. Telematics use in Ontario auto insurance

   May 16, 2015 3:13 pm Leave a Comment

   Although relatively new to the insurance automobile landscape, telematics is not new technology. It has been used in Quebec for several years and in Europe even longer. Formula One race teams even use it to help monitor and improve their performances.

   The devices which are now available to our client are small and easy to install. They perform the following tasks.

   • A high frequency motion sensor will monitor how a vehicle is driven and capture that information.
   • Data is transmitted via a SIM card
   • Where and when the vehicle is driven is captured with the GPS unit

   This device and the costs to operate it are included in your insurance premium.

   After the device has been installed in your vehicle it will begin to collect data on your driving. This data is sent securely to the company where your driving style is assessed. Feedback on your driving habits is available to you online or with one company, a smart phone application.

   The driving habits that are monitored to determine your score; speed, acceleration, braking, cornering, time of day and your vehicles GPS location. One of our companies does not record the time of day and another doesn’t capture the GPS location.

   Not all vehicles are equipped to work with the telematics device. Most vehicles that were manufactured since 1996 are equipped with an OBD port which is what this unit plugs into.

   A new policy will automatically include a partial good driver discount. This can be improved if proof of good driving is confirmed after the device has been installed. If however your driving behaviour is not consider good you may not receive an additional discount and the initial discount may be removed.

   Including the initial 10% discount, with good driving you can earn up to an additional 15-25% discount (depending on company).

   We currently represent two separate companies that have an automobile insurance policy offered with the installation of a telematics box. One is a special line only offering insurance to driver 24 and under and the other to all drivers that qualify.

   If you are interested in learning more about telematics or would like a quotation to see what your premium could be, please call our office and ask for one of our brokers to assist you.