Know Vital Insurance Policy Specifics Before You Buy

Know Vital Insurance Policy Specifics Before You Buy

What is insurance, and why do I need it anyway? 

Insurance is something that we all need. In one aspect or another, we need protection for life, home, auto, and other reasons. Insurance helps to protect us against loss that incurs in an unforeseen incident. Auto insurance, for example, protects you in the event there is an automobile accident. When an event like this occurs, it is always good to know that you have the proper coverage for indemnifying you for losses. 

The bottom line, insurance helps to provide peace of mind. To accurately navigate the requirements for protection, it is vital to have an insurance brokerage company that is on your side. It is where a good insurance broker comes in. Insurance brokers will help you match your needs for car insurance considering Ontario laws and regulations. As the saying goes, you have to know the rules to play the game. 

The same holds applicable for auto insurance. To get insured, you must know which insurance policy to choose. More importantly, it is critical to understand what the minimum requirements are for coverage. 

Which type of insurance do I need?

It is a great question. As mentioned earlier, insurance comes in many different forms. They include:

Home insurance - Home insurance protects you from losses that result from unexpected events. These events can consist of natural disasters, fire, theft, and in some cases, flood. It is not mandatory; however, having home insurance can give you an extra sense of security. If an event were to occur, you have the peace of mind in knowing you can recuperate the cost of your personal belongings and possibly your home.

Life Insurance - Life insurance is not required. However, not having life insurance can cause devastating effects when one dies. The family members and loved ones who are left behind would have the burden of taking care of financial matters when you die. If you are unprepared for such issues, this can have a disastrous economic impact.

Condo Insurance - Condo insurance is similar to home insurance. The difference, however, is condo insurance provides coverage for individuals who live in multi-dwelling units. If you live in a multi-dwelling unit, some landlords may require you to have condo or tenant insurance. It is wise that you take inventory of your personal belongings in the event of a loss. 

Health Insurance - Health insurance is supplemental and covers services that are not included in your government insurance plan. Dental coverage is a supplemental service and can purchase it at an additional cost. Health insurance helps to offset the cost of out-of-pocket expenses.

Auto Insurance - Auto insurance in Ontario is mandatory. There is no way around this coverage. Bottom line, it's the law. If you get caught without insurance, your car could get impounded, and the license suspended. The fines are costly and can go to the tens of thousands of dollars. If you have an insurance brokerage company on your side, they help you find the best rates and navigate car insurance and Ontario rules. We will discuss this type of insurance in more detail later. 

What's the big deal about auto insurance, and why is it mandatory?

Auto insurance in Ontario is the law. There are minimum requirements, and a knowledgeable and professional insurance broker will be able to find you the best policy to cover you in the event of an auto accident. Car insurance and Ontario rules can be cumbersome to understand. 

The bare minimum requirements for auto insurance and Ontario rules are outlined in detail, and one must follow these as per the guidelines of the Financial Services Commission of Ontario (FSCO). Those minimum requirements include the following:

Statutory accident benefits:

This benefit provides coverage no matter who is at fault. It provides a standard level of benefits. It covers items such as medical cost, income replacement, rehabilitation and death, and funeral benefits. 

Third-party liability:

This benefit covers the legal responsibility that you incur in an automobile accident that results in bodily injury, death, or property damage. The minimum requirement is $200,000.

Direct compensation:

Direct compensation covers you in an accident. It covers the contents of your vehicle and any incurred losses associated with you not being able to use your vehicle. It's only applicable if the accident happens in Ontario. You are paid directly by your insurance provider without having to wait for payment from a third-party. 

Uninsured automobile:

Uninsured automobile explains as it sounds. It protects you if you are in an accident with a motorist who is not insured. There is always that one person who chooses NOT to follow the rules. Would it be just your luck to be in an accident with that one person - right? Even though auto insurance in Ontario is mandatory, not everyone is adequately covered. You must take the necessary steps to acquire the right amount of coverage to protect yourself if you are in an accident with an uninsured motorist. 

You have to know the rules to play the game.

While driving in Canada, it is crucial to keep in mind the rules of the road. If you are traveling between countries or provinces in Canada, you must consider different factors such as observing the speed limit.

Violating any one of the rules or road signs can cause a driving violation that can severely impact the monthly premiums that you pay. Managing car insurance in Ontario can be tricky. It is vital to have a good insurance representative in your corner. 

Crossing boundaries.

Going from country to country is another factor to consider. When traveling from Canada to other countries, you would need to consider purchasing travel insurance. The cost of the insurance is contingent upon the duration of the trip. No matter the length of the journey, travel insurance is highly recommended. 

Even though you have supplemental insurance in Canada, a hospital stay in a neighboring country like the good ole USA could cost you thousands of dollars for one visit. Purchasing emergency medical insurance is the minimum coverage you should consider. Even if you are traveling between provinces, it is highly recommended that you purchase travel insurance to cover you in the event of an unforeseen emergency. 

When a situation occurs, the travel insurance will fill the gap of your provincial health insurance and will cover items such as hospitalization, medical expenses, and paramedic services. If an emergency were to happen, covering these expenses could be costly. It also covers your transportation costs to get you back home. Please note, travel insurance does not cover pre-existing conditions. 

Travel insurance also covers you in the event of trip cancellations. It reimburses you if you incur a loss for canceling a trip and reimburses you if your luggage is lost, stolen, or damaged.

Keep it legit.

My Insurance Broker can provide you with insurance to suit your needs. In some instances, you may even be able to save money by bundling your insurance products for a discount. For example, you could group your home insurance with your auto insurance and save money with those two products. You could also include your life insurance and save even more money. 

The possibilities are endless. Because there are a variety of insurance options, you must have a broker who is knowledgeable, reliable, professional and has your best interest at hand. My Insurance Broker is a brokerage agency that meets all those requirements. We will look out for you and make sure you are getting the best product to meet your needs and fits your budget. 

Explore our website at www.myinsurancebroker.com and look at the products and services we offer. If you need any type of insurance and are confused about which one to go for, My Insurance Broker can fit the bill. We can find the insurance product that suits your needs and provide you with the right amount of coverage.