When shopping for automobile insurance, it is important to consider your options and to purchase the most cost-effective policy to suit your needs. Following is an overview of some key considerations.
No matter where you live in Canada, the law requires that you hold a valid auto insurance policy if you drive a car. If you are caught driving without insurance, the financial penalties are severe — you may also risk having your driver's licence suspended, and your vehicle impounded.
There are many factors that determine how much you pay for auto insurance. They include:
Review what is included in the basic minimum insurance coverage, and whether you have the option of increasing your coverage above the minimum levels. Following are some of the areas that may be covered, depending on the insurance company.
After reviewing the basic minimum coverage, it is important to consider whether you require any optional coverage based on your specific car insurance needs. Some options to consider include the following:
1. You damage a car that you borrowed or rented.
2. You need a rental car if your car is stolen or needs repairs after an accident.
3. You require roadside assistance if your car breaks down.
A deductible is the amount you have to pay on any claim that is your responsibility. For example, if you have a $1,000 deductible, you need to pay the first $1,000 of the covered loss before the insurance company pays.
A higher deductible lowers your premium but increases the amount you must pay in the event of a collision or a comprehensive loss.
Some auto insurance policies provide coverage for a vehicle that is used strictly for pleasure (versus work) if it is registered in the company name for tax purposes. For other policies, if the insured works under a corporate name and owns a private vehicle, the insurance company can insure the vehicle in the corporate name, as long as it meets their guidelines and is not considered a commercial vehicle.
It may be surprising to learn that some items you keep in your automobile are not covered by your auto insurance if they are damaged or stolen.
Basically, anything that is not a permanent fixture, such as electronic devices, clothing or sporting gear, is covered through your property insurance — not your auto insurance. By insuring both your home and vehicle with one insurance company, you may save on your overall premium. And if you have a claim that involves both, you might pay only one deductible.
There are many options to consider when deciding which company to use for automobile insurance. The OMA's auto and home insurance program offers you and your family exceptional savings and a commitment to outstanding customer service.
For more information about choosing the right policy to suit your needs, please call 1.877.277.7165, or visit the OMA Insurance website at: www.omainsurance.com.