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Q&A - Auto


Q. If I get into an accident in another province, do the same insurance rules apply?
A. The rules of the province where you have the accident will prevail. If you live in a province that allows you to sue an "at fault" driver but the accident happens in a "no fault" province, you will have to look at your own policy for any payment.

Q. I am going on vacation and plan to rent a car. Does my automobile insurance policy provide any coverage for my rental?
A. If you are renting a vehicle, make sure you talk to your insurance broker in advance. Your policy can be extended to provide coverage based on your own unique needs.

Q. My credit cards promote that I have insurance coverage for car rentals. Is this sufficient?
A. Each credit card offers different coverages and limits. You need to read the small print very carefully, there may be limitations. Depend on your insurance broker not on your credit card.

Q. Will a comprehensive claim affect my premium?
A. While a comprehensive claim will not affect your driving record, it could affect your premium. Two or more comprehensive claims in a short span of time will likely affect your rate. Or, your insurer might ask you for a higher deductible, not offer this coverage, or cancel you altogether if you've had a number of comprehensive claims. Examples of comprehensive claims are theft, vandalism to your vehicle, or glass damage due to a pebble coming up from the pavement. 

Q. My car is five years old. Do I still need collision?
A. We would say 'yes', because a five year old car has more value than the amount of your insurance premium. 

Q. Who is allowed to drive my car?
A. Technically, anyone to whom you give permission is allowed to drive your car. This is because your insurance is attached to your car, regardless who is behind the wheel. But, if a driver you've authorized gets into an accident with your car it is your driving record that is affected. In Nova Scotia, all licensed vehicle owners must carry liability insurance. Liability coverage is extended to any person who holds a valid license and drives your car with your consent. Insurance companies want to know if there is anyone else besides you who drives your car on a regular basis.

Q. How are driving records determined?
A. Driving records are determined primarily by the number of vehicle accidents and traffic convictions you've had.

Q. Why should we carry higher liability limits?
A. Court awards for personal injury are climbing all the time. You don't want to be in a situation when you have an accident where the court awards a payment higher than what your insurance policy will pay. If this happens, you will be required to make up the difference from your savings and the sale of your personal assets.

Q. What can I do to reduce my insurance costs?
A. Drive safely. Think about carrying a higher deductible. Keep your car and your property in good and safe repair. Ask your broker about discounts offered by insurance companies (not all companies have the same offerings). Examples: multi-vehicle, loyalty, age, driver training or reductions for telematics.

Q. Why are my rates going up?
A. Insurance is very complex product and various factors can contribute to determining what you pay.  Your premium is calculated using your driving record, vehicle make/model and year; where you live and drive and other coverages you carry over the mandatory coverages. Higher risk drivers may find it more difficult to secure insurance and would be placed in a sub-standard market like Facility Association.  Higher risk drivers could include those that have missed payments, have multiple claims and/or multiple driving infractions.  These days it is also more expensive to repair cars since many have more technology built into them: sensors, cameras, centralized computerized etc..

Q. What can happen if I don't pay my insurance bills on time?
A. Your policy may be cancelled. Once cancelled for any reason, it may be difficult to get another policy.