My hope is that you will take away key things in this section by not only choosing the cheapest option for auto insurance but what suits your lifestyle and needs.

This video explores the top 10 auto insurance companies that you should consider when purchasing a policy for your vehicle. Buying an auto policy shouldn’t be driven simply by financial means – choosing which one is the cheapest. In this video the top 10 auto insurance companies listed are: Sonet, RSA Group, Economical Insurance, TD Insurance, Aviva, Belair Direct, Desjardins, Intact Insurance, The Personal Insurance, and the Cooperators. The commentator also provides the star rating based on consumer rating, speaks on optional coverage and how it fairs with their customer service experience. Some insurance companies only provide coverage for certain specific vehicle like snowmobiles and ATVs to name a few. 

 

WHY WAS THIS VIDEO CHOSEN?:

I chose this video as it is often beneficial to get an opinion on the highly rated insurance companies. Whenever we purchase an item or go to a restaurant, we always want to get a feedback or review to see what others have experienced dealing with that company. As your contract is locked in for a year, it is important to explore all the coverages involved and the consumer experience dealing with that insurance company. An insurance company may have all the glitz and glamour but if their customers are often neglected, I personally would not buy any product from them. 

This video was created by an insurance advisor and expands on what is included when purchasing an auto insurance. This video dissects the coverages included in your policy. The liabilities that it outlines that are mandatory that directly reflects injuries to cars and people are third party and bodily injury liability. This protects you from litigation when you get involved in an accident and you are sued for physical damages to the vehicle as well as if there was a bodily physical injury. This video discusses all the other mandatory coverages you are requires purchasing within the policy that you cannot opt out of. The video also explains how deductible works and when it is required – mainly when you’re at fault, you’re required to pay a deductible. Accident forgiveness is when you’re at fault and the company extends a one time waiver that they won’t rate your policy for this accident. It gives valuable information on how to save on car insurance as well. 

 

 

WHY WAS THIS VIDEO CHOSEN?:

I chose this video simply that when purchasing an auto policy, it is important to be aware what is covered and what is not. Prior to this assignment, it was my understanding that the coverage for auto insurance only covers the damages for your vehicle but in fact, there are plenitude of other coverages that are mandatory when purchasing an auto policy. The liability that you are required to have protects you as the driver as well as anyone else that you may come in contact with in the road including pedestrians and other passengers in other vehicles. 

This video speaks on saving on an auto policy without having to compromise the integrity of the product. There is also emphasis on choosing to go with an insurance agent versus an insurance broker. Although a broker will be able to get you the best deal, you may benefit from going with an insurance agent that is able to customize and represent the insurance company you purchase from. There is a direct line of communication between you the consumer and the company, the insurance. It also expands on that premiums are not solely related to the profits made by the insurance company but perhaps the demographics of area you live in, the amount of accidents involved that year, the car frequency of theft of that vehicle and lifestyle choices surrounding age and gender. 

 

WHY WAS THIS VIDEO CHOSEN?:

I chose this video as it gives a practical approach to selecting car insurance and also to understand how insurance companies rate your premiums. It is not based on the make and model of car. It also distinguishes that area you live in, if you are more likely to be involved in accident because you may live in a more urban area, or that you’re a young gentleman that may have a high frequency of accidents. Married couples are rated to be more responsible than a single adult. Who also doesn’t want to take advantage of money-saving tips. Information such as multi line discounts can reduce your total premium to 30% is something you do not want to ignore. 

Automobile insurance rates are continuing to climb even after Covid 19. During the lockdown, less drivers were on this road but this video explores why the rates continue to rise despite less drivers, traffic and accidents on the road. Kotak Law has been interviewed to provide commentary to why this is the case. Rebates also known as financial relief have been offered however does not reflect during the yearly premium. Insurance companies are still continuing to profit. He warns that there is a lack of transparency between consumers and insurance companies. MTO statistics that show there has been a 60% drop in accident claims but premiums continue to rise. Financial Services Regulatory Authority of Ontario (FSRA) refused to speak to CityTV and released a statement that, “the premiums being charged to consumers today are based on claims experience before the pandemic changed drivers’ behaviours.” 

 

WHY WAS THIS VIDEO CHOSEN?:

I chose this video to highlight that Insurance Companies are regulated by Financial Services Regulatory Authority of Ontario. Despite the change in driving behaviour during the pandemic, the automobile insurance companies continue to rate premiums according to driver’s history pre-pandemic. That despite one year of driving less and a decrease of accident, the history is still accounted for in years prior to rate the individual accordingly. It is important to note that the increase in insurance is not biased but merely generated in case studies and trends of the driver. The insurance companies take a multiyear approach when rating drivers.

Financial Services Commission of Ontario is a governing body that regulates the insurance sector. It protects the public interest and to enhance the public’s confidence in the insurance companies. FSCO not only regulates a specific sector but it also regulates the automobile insurance companies. There are regulatory members involved: the commission, superintendent and staff and the tribunal. In this website, you’ll find specific links to refer to get information on your automobile insurance. It includes auto insurance and it’s law, where to buy auto insurance, what is in your auto poicy, what is the standard auto insurance policy to name a few. 

 

WHY WAS THIS WEBSITE CHOSEN?:

I chose this website as an informative tool for us consumers and the general public. It is always important to know which regulatory body protects and governs the companies we purchase. It establishes rules and guidelines that must be followed in strict adherence to avoid any type of litigation. It is also an important website to educate ourselves on what an automobile insurance legislation is. It also emphasize that automobile insurance is the law. We cannot simply drive a vehicle in Ontario without it. It also lists where to purchase automobile insurance and who is licensed to sell insurance. Key definitions are also noted that may be familiar when reviewing your automobile contract. 

Financial Services Regulatory Authority of Ontario (FSRA) is the governing body that protects the public’s rights when purchasing automobile insurance. This governing body also reviews any complaints lodged against an insurance company and to determine if they are following any of mandates and rules set out by the FSRA. This website expands on different roles such as the consumer, the industry, licensing body, regulations, engagement and consultations and enforcement and monitoring. It also includes common Questions and Answers or Frequently Asked Questions queried by the general public. Another section this website includes is the understanding of auto insurance rates and what to consider when you want to purchase an auto policy. 

 

WHY WAS THIS WEBSITE CHOSEN?:

FSRA website is very helpful as it is not a biased or influenced by a specific insurance company. Its role is to be informative and to provide the general public knowledge on the product of auto insurance. Like FSCO, its role is to protect the public from misrepresentation, misinformation and the correct legislation associated with car insurance policies. Knowing the right regulatory body to register a complaint towards a car insurance company could be useful in an event that you have a dispute with them and need to refer to literature. Lawyers will also use this website as reference for when setting their arguments to mishandling of car insurance policies. 

Insurance Bureau of Canada (IBC) is the Canada-wide governing body that represents the insurance companies. Their product lines include private home, automobile and business companies. This governing body protects the insurance companies and outlines their role in the Canadian markets. The role of IBC is to be proactive within all insurance sectors – including automobile. In the Auto tab, you’ll be able to explore useful links such as how to buy insurance, how it works, how premiums are calculated. To delve more deeply into how insurance works, it outlines 4 key steps in the insurance process: 1. assessing the risk 2. The premium assuming the risk on your behalf should the catastrophe were to happen 3. The premiums are put into a pool into an annual contract 4. That pool is then used for losses for other policy 

 

WHY WAS THIS WEBSITE CHOSEN?:

I chose this website as it seems very insightful to know the logic behind how insurance companies work. This also gives transparency for consumers to how insurance companies design their premiums. What I discovered reviewing this website is that insurance companies work very similar to banks. They use a pool of money to cover the losses of other clients or consumers prior to actually using the “house’s” money. Surprisingly, it also gives warning to consumers which you wouldn’t think a company would warn you of. They discuss what you should be looking for in your auto insurance policies and how to read them when offered in a contract. 

Statutory Accident Benefits Schedule (SABS) is a referred to what is no-fault insurance when you are involved in a motor vehicle accident. This is a mandatory coverage that is included when you are buying auto insurance. Certain and specific benefits are made available when involved in the accident regardless who is at fault. The SABS outlines the law surrounding to these benefits and the entitlement and eligibility of these benefits when you’re involved in a motor vehicle accident. It is important to note that benefits work similar to WSIB that if you’re involved in an accident, your auto insurance will cover your medical and rehabilitation, perhaps loss wages and assistive devices as deemed reasonably and necessary. 

 

WHY WAS THIS WEBSITE CHOSEN?:

This website was chosen simply as when you purchase auto insurance, you assume that your premiums are all going towards to protecting your car only. In fact, your auto insurance also covers any bodily injury, collaterals, and incidentals all while in the vehicle or sometimes even in the proximity. I chose this website as it is informative to know the explanation of benefits included within your policy and you can refer to them if you are unfortunately involved in a motor vehicle accident. I’m pretty sure a lot of people, including myself, are not aware that if you’re involved in an accident, there is income replacement benefits included in your premium that will cover loss wages as you recover from the accident.

What I learned the most about this topic is the multitude of requirements and mandatory coverages involved in a car insurance. It is not simply to only provide coverage to your vehicle but also to other factors that may drive your premium up or down depending on a list of criteria.

 

In 2021, my family and I had purchased a condo only 10 mins east from my original location. Based on that alone, our insurance premiums had increased an extra 2% which I always found odd considering nothing else changed other than being further east. 

 

Always read the fine print and do not sign anything without understanding the coverages in your policy. One of the videos outlined liability and the importance of how it can protect you if you were to injure someone from the accident.