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Car Insurance Rates To Skyrocket (pg. 8)
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| Sentinal |
| quote: | Originally posted by Abercrombie
a) sucks when it's a new car you just bought!
b) even if it was $1000 feel-like-a-ripoff-cash you'd have to pay him, I'd still pay it. The increase in insurance is more costly in the long term. Bite the bullet and pay the stimate (hopefully he'll show your 3 of them). |
I just called the Honda dealership and the estimate that it will be about 8-900 bones. I figure I will give him about 500-600. As moral hazard said, the insurance company will assign fault which is most likely more mine but some his. Because of this, he will have his rates go up to. So figure 2/3 of the cost is fair. |
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| Moral Hazard |
| quote: | Originally posted by Sentinal
I just called the Honda dealership and the estimate that it will be about 8-900 bones. I figure I will give him about 500-600. As moral hazard said, the insurance company will assign fault which is most likely more mine but some his. Because of this, he will have his rates go up to. So figure 2/3 of the cost is fair. |
It's 100% your fault, his rates would not go up, he would not have to pay a deductible.... of course he probably doesn't know that so you can play that to your advantage in negotiations; however, be aware that if he does report a claim you will be 100% at fault. |
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| Sentinal |
| quote: | Originally posted by Moral Hazard
It's 100% your fault, his rates would not go up, he would not have to pay a deductible.... of course he probably doesn't know that so you can play that to your advantage in negotiations; however, be aware that if he does report a claim you will be 100% at fault. |
Really? Even if he cut in and slammed on his breaks??? There was no way I could prevent it. I'm sure he is going to be doing some research just as I am.
So insurance companies don't look at the value of the claim either? Just the fault target. Wow. It seems terribly unjustifieable to raise a premium the same amount if an accident is 800 or 8000. |
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| Moral Hazard |
| quote: | Originally posted by Sentinal
Really? Even if he cut in and slammed on his breaks??? There was no way I could prevent it. I'm sure he is going to be doing some research just as I am. |
In terms of an injury claim it could make a difference... in terms of a physical damage claim; no. As long as both of you were travelling in the same lane at the time of the impact the rear ending vehicle is ALWAYS 100% at fault (thank Mike Harris). fault determination rules
| quote: | | So insurance companies don't look at the value of the claim either? Just the fault target. Wow. It seems terribly unjustifieable to raise a premium the same amount if an accident is 800 or 8000. |
Premium is charged based on your risk rating multiplied by the amount of insurance you are purchasing. The amount that any one claim costs has nothing to do with how big a risk you are; whereas, whether or not you were at fault does. |
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| Abercrombie |
| The person doing the rear-ending is always 100% at fault. It's the driver's responsibility to maintain a safe distance between the car ahead, at any speed. |
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| DigiNut |
Funny, everyone's focusing on the insurance issue but what shocks me is that it wasn't reported to the police. You have to do this. It's a very serious offence not to. And there is no reason not to, because it will have no effect on anyone's insurance if the claim is not reported. The police don't contact your insurance; it's your insurance that might contact the police to get a copy of the report, and only if you file a claim.
I'm amazed that he went along with it. If somebody rear-ended me, at any speed, and said not to file a police report, I would tell them without hesitation to piss off.
Incidentally, you don't "call" the police anymore, you go to a collision reporting centre. Been that way for as long as I can remember.
P.S.
Link fail. |
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| ChemEnhanced |
[QUOTE]Originally posted by DigiNut
Funny, everyone's focusing on the insurance issue but what shocks me is that it wasn't reported to the police. You have to do this. It's a very serious offence not to. And there is no reason not to, because it will have no effect on anyone's insurance if the claim is not reported. The police don't contact your insurance; it's your insurance that might contact the police to get a copy of the report, and only if you file a claim.
I'm amazed that he went along with it. If somebody rear-ended me, at any speed, and said not to file a police report, I would tell them without hesitation to piss off.
Incidentally, you don't "call" the police anymore, you go to a collision reporting centre. Been that way for as long as I can remember.
P.S.
Many insurance companies have agreements with the police departments, especially in toronto, where any collision reports involving one of their insureds is automatically sent to the insurance company. So even if you don't put a claim in but report it to the police you could still see an increase in your rates. |
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| ChemEnhanced |
| quote: | Originally posted by Moral Hazard
First and foremost; you gave him terrible advise... if he reports a claim his damages will be repaired under a coverage called Direct Compensation, which carries NO DEDUCTIBLE.
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Although most policies don't have a deductible for Direct Comp some policies do have a Direct Comp deductible. |
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| Abercrombie |
| quote: | Originally posted by ChemEnhanced
Many insurance companies have agreements with the police departments, especially in toronto, where any collision reports involving one of their insureds is automatically sent to the insurance company. So even if you don't put a claim in but report it to the police you could still see an increase in your rates. |
Correct, there are signs in each collision reporting centres saying just that. |
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| Sentinal |
Actually according to my insurance broker who I called today said you DO NOT have to go to a collision reporting centre if the damage is percieved to be under 1000 and there are no injuries.
And I didn't tell him not to report it, I said there was no need to call the police as it was a very minor accident. They most likely wouldn't even show up even had we did call. |
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| ChemEnhanced |
| quote: | Auto Insurance Rates for the Second Quarter of 2009 [Bill 5]
Rate applications approved during the second quarter of 2009 (April 1, 2009 to June 30, 2009) averaged +3.20%, based on the entire market.
In the second quarter of 2009, for the 54.67% of the market that had rate changes approved, the average rate change was +5.86%, when weighted by market share.
The rate changes approved in the second quarter of 2009 become effective in the second quarter of 2009 or later for renewal business.
The rate changes approved in 2004, 2005, 2006, 2007 and 2008 were -10.60%, -2.43%, -1.27%, +0.55% and +5.59%, respectively, for the entire market.
The approved rate change shown for each insurance company is the average for that particular company. The impact of a rate change on an individual consumer will vary depending on where the consumer lives, the type of car he or she is driving, and other risk characteristics.
FSCO will continue to ensure that insurance companies' rate changes are reasonable and justified, and that the rates insurers charge are balanced with their ability to meet their future claims costs.
ONTARIO PRIVATE PASSENGER AUTOMOBILE INSURANCE RATE FILINGS APPROVED
April 1, 2009 – June 30, 2009
Insurer 2008 Effective Effective Approved
Market New Renewal Rate
Share Business Business Change
Date Date
Allstate Insurance Company of Canada 2.91% 07-Jul-09 07-Sep-09 1.80%
Arch Insurance Company1 0.00% 01-May-09 n/a 0.00%
Aviva Insurance Company of Canada 0.39% 01-Jul-09 01-Jul-09 5.00%
Belair Insurance Company Inc. 0.12% 12-Jul-09 05-Sep-09 -0.47%
CAA Insurance Company (Ontario) 1.08% 29-Jun-09 15-Aug-09 12.10%
Certas Direct Insurance Company 1.08% 24-May-09 24-Jul-09 4.00%
Certas Home & Auto Insurance Company 0.00% 24-May-09 24-Jul-09 4.50%
COSECO Insurance Company 1.56% 01-Dec-09 01-Dec-09 10.40%
Dominion of Canada General Insurance Company, The 4.75% 15-May-09 15-Jun-09 5.36%
Economical Mutual Insurance Company 6.21% 01-Jul-09 15-Sep-09 6.73%
Elite Insurance Company 0.16% 01-Jul-09 01-Jul-09 4.50%
Intact Insurance Company 7.55% 22-Jun-09 08-Aug-09 5.51%
Lombard Insurance Company 1.03% 15-Jun-09 15-Jun-09 5.10%
Nordic Insurance Company of Canada, The 2.54% 12-Jul-09 05-Sep-09 6.71%
North Waterloo Farmers Mutual Insurance Company2 0.00% 01-Jul-09 01-Jul-09 5.78%
Novex Insurance Company 0.50% 08-Jun-09 25-Jun-09 5.81%
Personal Insurance Company, The 3.10% 24-May-09 24-Jul-09 8.00%
Pilot Insurance Company 4.89% 01-Sep-09 01-Sep-09 7.50%
Portage La Prairie Mutual Insurance Company 0.19% 01-Jun-09 01-Aug-09 6.10%
Primmum Insurance Company 1.46% 15-Aug-09 01-Sep-09 3.00%
S&Y Insurance Company 0.60% 01-Jul-09 01-Jul-09 3.90%
Scottish & York Insurance Company Limited 1.46% 01-Sep-09 01-Sep-09 10.00%
Security National Insurance Company 5.57% 15-Aug-09 01-Sep-09 3.00%
TD General Insurance Company 2.20% 01-Sep-09 15-Sep-09 10.00%
TD Home and Auto Insurance Company 1.54% 01-Sep-09 15-Sep-09 3.00%
Traders General Insurance Company of Canada 3.14% 01-Jul-09 01-Jul-09 5.00%
Waterloo Insurance Company 0.64% 01-Jul-09 15-Sep-09 3.02%
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