Answer to your Auto Insurance Questions
 

Well, after seeing the number of questions and answers given on this board from people who have been involved in auto accidents, I thought I would post how a claim operates from the insurance end. For those of you who have been involved in an accident before, you probably already know most of this, but to some, this may help, which is the objective.

First off, if your not sure weather to make a claim or not call your broker and ask for their opinion. If you don't have a broker, ask your agent, or at least, someone in the industry. Chances are, if the damage is minor, and their are no injuires, you may be able to take care of the claim yourself.

Now, if you are involved in an accident, the insurance company determines fault, not the police officer. If you are cahrged with something, chances are you will be held at fault. If you fight the charge and win, you will likely still be held at fault. Adjusters have to follow Fault Deteremination Rules made by the Ontario Government. Fault is always assigned in a mutli car collision, regardless of where it occurs.

AT FAULT ACCIDENTS

If you are held at fault for an accident, yoru deductiible will be charged and your premiums may go up. Your insurance company pays for the damage to your vehicle only. The only time your company will pay for the damage to the other vehicle is:
-If the person is from the US
-If the person is uninsured (you may hit a parked vehicle that has no insurance on it)
If they are insured in Ontario, there company will pay for the damage to their vehicle and their rental, NOT YOURS!
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You will only have coverage for an at fault accident if you have bought Collision Coverage -
You will have rental coverage if you have bought it, at the limit you bought ($900 is a typical limit) otherwise you will not have it if you are at fault.

A hit and run is covered under your collision coverage, however it is not seen as an at fault loss. You will have to pay your deducible but usually a company does nto charge for 1 hit and run. If you ahve a few, you may see an increase.

NOT AT FAULT ACCIDENTS

If you are in an accident and your insurance company determines you are not at fault, you have coverage under your liability insurance, also called Direct Compensation Property Damage, or DCPD.
This coverage does not contain a deductible, so you will not have to pay. Also, you are given rental coverage, regardless if you bought it or not. There is not limit on the rental. This type of claim should not increase your insurance, as the claim was not your fault, however is you have to many of these claims, they may surcharge you at some point.

FAULT DETERMINATION RULES:
Can be viewed here:
http://www.fsco.gov.on.ca/reg668/reg668a.htm


COMPREHENSIVE CLAIMS

This coverage is your traditional fire and theft coverage. It also covers vandalism, if you hit an animal, and some other things that may never happen (lightning, flying object)

You do have a deductible on this coverage, however it is sometimes waived when a vehicle is stolen. Now, the entire vehicle must be stolen, not just the rims or stereo. when your vehicle is stolen, you automatically get a rental with a $900 limit.

If you do have a vandalism claim or a animal claim, you will have to pay your deductible but your premiums should not be increased. Again, if you have to many, your insurer may increase your deductible.

If I have missed anything, or you have questions I will update the post, in response to your posts. Hope this helps.

can you post the at fault determination rules as set out byt he ontario government?

I know they may be complex but being able to go through the same steps that the insurance company would go through would be a great help in understanding the process... this part at least is often clouded in seceracy and therefore hard to figure out.

^^^Done

cool cool I was going to say no you didn't post them then I saw the link cool stuff thanks alot.

after reading that I don't wanna be automobile B ever..

I found Ontario Regulation 276/90 section 8.9.4 to be very interesting

it says that if in a 3 car collision where automobile C hits B from behind which then hits car A. while both cars A and B were stopped before the collision then automobiles A and B are both not at fault.

very interesting...

how is it interesting? I wouldnt mind being car A or B...but not C :D

it's interesting because if you do a search you'll see a few people on this board have been in car B's situation and been told they are "at fault" when in fact they were not...

The reason they were at fault, or partially at fault was likely because they were not fully stopped. If you still moving, you can be held 50% at fault, for not having control of your vehicle

awesome post...clears nuff things up...insuranceman does it again!

yes true but based on their stories they were fully stopped... but whatever

Well if they were fully stopped, I would ask the adjuster to let them know what fault rule they were held under, and then use the link to see where the adjuster stands.

the only thing id add is a 72 hour waiting period to get a rental car if your car is stolen, otherwise helpful and informative information - good job :thumbup:

of course, there's always the topic of modified cars, what is allowed, what isn't, what is a cosmetic mod and what is a performance mod and how many $$ you can spend before your premium increases etc - perhaps you'd like to tackle that one too :naughty:

The 72 hour waiting period is usually waived by the top 3 rental agencies, Discount, Enterprise and Budget, if you ask your adjuster they will have it waived for you.

The topic of modified vehicles is a company to company policy, so I would only be able to give you my companies point of view, its not an industry standard, yet.

thats good to know theres a way around that statutory condition :thumbup:

STEREO EQUIPMENT

I should also note that auto insurance policies come with a $1500 limit on stereo equipment. That is it. If you have more than that in yoru car, you will need to ask for an increase, also called a floater, to be added to your policy. They will ask for details as to the age of the stereo and equipment, and the value.

OTHER EQUIPMENT

If you want things like your rims and bodykits covered by insurance, usually you have to make them aware that you have this equipment or they will assume you have a stock vehicle. This will cost you more but then you are guranteed that if something were to happen, it will be covered. Most people take their chances and don't insure these items, and some companies will cover them, but its a coin toss.

TOTAL LOSSES

If you car is written off, most companies will make you an offer to settle, based on the value of your vehicle. If you vehicle is leased, they will settle directly with the leasing company, as they are the legal owner. If it is financed or owned, they will settle with the owner. The value they settle on is an ACTUAL CASH VALUE, not the replacement value of your vehicle (unless you buy the OPCF 43, waiver of depreciation). This waiver is only available on new vehicles, and is good for 2 years. If your car is older, the ACV will be given. If you believe your car is worth more, you will need to prove this through maintence records, adds showing the car is selling for more, and possibly and upgrades you ahve done to the vehicle. In order to get extra money, they need proof. Your word is not good enough, they will need the paperwork.

i got rear ended a few years back, i was at a complete stop... as said in the police report... yet i was at least somewhat at fault cause my rates doubled that year... no tickets or anything at the time :shrugs:

Did you ask about the fault rating? Did you pay a deductible?