• Car insurance

    As a client, you can subscribe to insurance at a ridiculously low cost. You may, however, be not so impressed when comes the time to make a reclamation. Who will help you if you are not able to reach an agreement with your insurer? Is that a risk you are willing to take?

    Adopted on March 1st, 1978, the Quebec Automobile Insurance Act makes a very clear distinction between victims of physical injuries and victims of material damages. Whether or not you are held responsible for the accident, legal proceedings cannot be undertaken against you by victims of physical injuries unless the accident has occurred outside of Quebec. In case of accident, all Quebec citizens are compensated by the Société d’assurance automobile du Québec, whether or not the accident occurred in the province.

    Your insurance policy can offer several types of coverage:

    • Third party liability (Chapter A)
    • Comprehensive coverage (Chapter B1)
    • Collision or upset coverage (Chapter B2)
    • Collision and/or comprehensive coverage (Chapter B3)
    • Designated risks coverage (Chapter B4)

    And additional coverage such as:

    • Vehicle rental in case of loss of use
    • Life and health insurance
    • Replacement value or replacement guarantee insurance.

    Car insurance rating mechanisms

    Why did your car insurance premium go up? Car insurance premiums can go up for several reasons.  Insurers set rates according to the area where you live. For example, if you live in Montreal, chances are that your car insurance premium will be higher than if you are living in the Eastern Townships. Insurers also take into account the number of kilometres you drive to and from work as well as your yearly millage. Your driving record will also have a positive or a negative impact on your premium and on the type of coverage and special rebates to which you will be eligible. If you have made several reclamations, your insurer may choose not to insure you anymore, which means that you will have to deal with a substandard insurer. Lastly, insurance companies also calculate their premiums according to the driver’s age and sex. As you can see, car insurance rating mechanisms are quite complex, as is the world of insurance in general. You must know, however, that insurance prices go through cycles, and that it is perfectly normal to see your auto, home or business premiums go up at certain times since insurance companies, like all other businesses, must operate within budget limits. Insurance premiums are based on the company’s liquid assets. If these are depleted because of frequent reclamations or low investment earnings, the company’s administrators may demand that the company’s financial performance be rectified in order to have enough liquid assets to cover several reclamations at once, as all insurance companies are required to do so.

    Here are a few helpful hints to reduce your auto insurance premiums:

    • Install an alarm system (Consult your broker to determine the insurance rebate you could obtain if you do this);
    • Always lock your car doors;
    • Increase your deductible values;
    • Don’t make any claims for broken car windows;
    • Trust your broker when it comes to damage insurance

    Be aware that there are two-year insurance terms that will protect you from yearly price increases.    

    Here is some advice that will help keep you safe:

    • Always make sure that you have enough gas in your tank to take you where you are going.
    • Check your tires and make sure that they are adapted to the season’s driving conditions.
    • Keep a first aid kit in your vehicle.
    • Check your local weather forecast before leaving home.
    • Take regular breaks when driving for long periods.
    • Keep a first aid kit in your vehicle.
    • Keep a blanket, gloves, a hat and chocolate bars in your vehicle.
    • Keep a flashlight, safety flares and boosting cables in your trunk.
    • In winter, keep a shovel and a bag of salt or sand in your trunk.
    • Keep a strong piece of rope and a red flag or a piece of red cloth in your car.

    Good driving habits help me to maintain a good driving record that in turn ensures that my car insurance premiums remain reasonably priced. I do not drink and drive. I respect speed limits and road signs and I stay concentrated while at the wheel. I keep a safe distance between my car and the vehicle in front of me.

    Hints to avoid auto theft or vandalism.

    Always close your vehicle’s windows and lock the doors when you park. If possible, park the car in a well-lit area and on a busy street. Do not leave valuables in plain sight. Make sure your car’s alarm system works. Never leave a child alone in a vehicle. Never leave a running vehicle alone, not even for a few seconds. Items to put into your emergency survival kit:

    • A first aid kit.
    • A blanket, gloves, a hat and chocolate bars.
    • A flashlight, safety flares and boosting cables.
    • A shovel and a bag of salt or sand.
    • A strong piece of rope and a red flag or a piece of red cloth.