Auto Insurance: Advice For Buying Insurance And Avoiding Hassles
This advertorial is brought to you by Groupement des assureurs automobiles (GAA)
It’s time to renew your car insurance. The insurer that you contact asks you a lot of questions. He’s not being indiscreet. What he wants is to offer you a premium that reflects the risk you represent.
- Also: Joint Report: are you familiar with the mobile app?
- Also: 7 Things to Know About Vehicle Repairs Following an Accident
So, in order to establish the fairest premium possible, your insurer requires all the information to analyse your file. Anything you leave out, whether deliberately or not, could prove costly should you have an accident.
Vehicle use
What you use your vehicle for affects your premium. Your insurer needs to know whether you drive 5,000 km or 30,000 km a year, or drive to work every day or use your car for work. Where you drive your car is also important. Do you do most of your driving on the streets of a quiet village or do you regularly drive in heavy traffic in a big city? You have to be upfront with your insurer.
Who drives the car?
It’s important for your insurer to know who drives your car. Stats show that age and gender have a real impact on claims frequency. The younger the drivers, the more accidents they have.
Does your 17-year old son drive your car? Tell your insurer. If you don’t, and your son is involved in an accident, this could compromise the indemnity pay-out.
Tempted to hide a loss from your insurer?
Auto insurers use the Fichier central des sinistres automobiles (FCSA) to access your claims file. This data base tracks the accidents in which every policyholder has been involved over the past six years, regardless of whether they made a claim or not. When you declare a loss or make a claim to your insurer, it will be recorded in the FCSA.
Don’t think you need to report a fender bender to your insurer if you decide to pay the cost of repairing your vehicle? Think twice: you are required to report it! You should also know that this loss could still be recorded in your file at the FCSA if the other driver involved in the accident reports the accident to his insurer.
If this is the case, when your insurer consults your FCSA file, he will see the fender bender and could then adjust your insurance premium.
Not sure how many accidents you’ve had over the past six years? You can consult your FCSA file free of charge. Go to www.gaa.qc.ca and follow the steps.
Before you buy a new vehicle: check out the facts
When you’re shopping for a new vehicle, also shop around for your insurance. The car’s value can affect the premium, as does the cost of parts and repairs.
A piece of advice: check out the cost of the insurance before you decide on the car. That way you’ll know exactly what the vehicle you have your eye on will cost.
Coverage
In Quebec, you’re legally required to have at least $50,000 in civil liability insurance. For more coverage, you have other options that will allow you to be compensated in case of theft, vandalism, or an at-fault accident.
Give it some thought before you reduce your coverage to a minimum, or before you raise your policy deductible. You’d have to pay out more in case of theft or collision. Make sure you really have the means to do so.
If you’re finding it difficult to get insured, GAA’s Insurance Information Centre can help. Contact the Centre at 1 877 288-4321 or cinfo@gaa.qc.ca.
