Show all/Hide all

Can I require my insurance to authorize the use of original equipment parts when repairing my vehicle? My policy says they will return my damaged vehicle to "pre-accident condition."

Possibly. This will depend on the terms of your auto insurance policy. Some automobile insurance companies automatically use original equipment manufacturer (OEM) parts. Others use non-OEM parts.

You may be able to insist on OEM parts, but where they aren’t required you will generally have to pay the difference in cost.

Can my insurance company refuse to pay my claim?

Most insurance policies include a section in your policy that defines what you, the policyholder, are required to do when an accident occurs. This information in your policy sets out the general as well as any specific procedures that you must follow in order to have your claim covered by the insurer. It's essential to follow these procedures carefully, since payment of your claim may depend on your doing so.

Additionally, they can refuse to pay your claim if they find that you have not disclosed all required information or given false information with respect to the claim or during any point in time from policy application onward.

Is a broken windshield covered under my auto policy deductible?

Broken windshields and other glass are typically covered under the comprehensive coverage portion of an auto insurance policy. Comprehensive generally provides coverage for physical damage to your vehicle caused not by a collision with an object or another vehicle, but by a variety of other specific perils. This type of coverage may be optional depending on your insurer, and if purchased, will usually raise your premium and carry deductibles. It may or may not be cost effective, depending on the value of your vehicle.

If you do have comprehensive, the cost probably will be covered, but to what extent depends on the details of your particular policy. Comprehensive coverage is broken down into the different items or perils covered under specific sections of the policy (e.g., glass, fire, water, theft, etc.). Each is listed separately in the contract and is usually subject to its own deductible, which can often be adjusted up or down.

What factors can an insurance company look at to determine if they will insure me?

In reality anything they want.

Can I have my glass replaced at my home or office?

Yes, but you should take precautions. You should avoid having your windshield replaced outside when the weather is bad. Any time the temperature is below 40 degrees Fahrenheit, one-part adhesives may not adhere properly, and your windshield could leak or lose its adhesion. In low temperature and high humidity situations, a reputable company will use a two-part sealant containing a chemical drying agent that will harden quickly under all temperature and humidity conditions. No reputable company would replace a windshield during poor weather conditions without setting up a temporary shelter over your car to protect it during the installation.

How high should I set my deductible?

As high as you comfortably can. A small increase in your deductible can allow you to make a big increase in more important coverage, like liability.

What is OEM glass?

OEM stands for Original Equipment Manufacture. This means that the glass meets the original specifications for safety and quality as the glass that it came with from the factory.

Windshields may look simple, but they are actually made from two pieces of glass that are bent in a very precise way. If a windshield does not meet the exact specifications of the manufacturer, it will not fit precisely in your car.

The best way to assure exact fit is to use a windshield produced from a fixture engineered to manufacturer’s specifications. OEM glass is your assurance that this has occurred.

When should I go to a Collision Reporting Centre?

With the following exceptions, any driver involved in a collision where damage to vehicles or property is more than $1,000 may report the collision to a Collision Reporting Centre. Police will come to the scene when one or more of the following situations apply.

Exceptions

1. Collisions involving injury or death.
2. Criminal activity involved in collisions (e.g., impaired driving, stolen vehicle, assault, etc.).
3. Collisions involving federal, provincial or municipal vehicles (including transit vehicles).
4. Collisions involving a person who is uninsured or is a suspended driver.
5. Collisions involving vehicles transporting dangerous goods.
6. Collisions involving damage to private, municipal or highway property.

Without exception, towed vehicles must go directly to a Collision Reporting Centre.

How does a visitor to Ontario obtain an Accessible Parking Permit?

These permits ensure that people with disabilities have a unique entitlement to designated parking throughout Ontario (specific parking privileges vary depending on the municipality or parking lot owner). The Ministry of Transportation (MTO) issues Accessible Parking Permits to out-of-province visitors for a maximum of six months.

Note: Ontario honours disabled parking permits, markers or devices, bearing the international symbol for access for the disabled from other jurisdictions. However, some jurisdictions use number plates.

You may apply for an Accessible Parking Permit even if you do not own a car or have a driver's licence. These permits are issued to individuals, not vehicles. A "portable permit" issued to disabled individuals ensures their ease of access from any vehicle at any time.

Applications for Accessible Parking Permits may be obtained at any Driver and Vehicle Licence Issuing Office in Ontario. You can also obtain permit applications by contacting MTO INFO General Inquiry, toll-free, at 1-800-268-4686 (TTY: 1-866-471-8929). Upon receiving the application, complete section one, have a regulated health practitioner complete the medical sections, and mail it to MTO, Licence Renewals Section, APP Unit, P.O. Box 9200, Kingston, ON K7L 5K4. The application form can also be returned to any Driver and Vehicle Licence Issuing Office.

There is no charge for Accessible Parking Permits. MTO is committed to breaking down barriers for people with disabilities throughout Ontario.

Am I covered for a car accident that happens in another province?

A car insurance policy is generally good throughout the country. However, some policies change their coverage a little depending where you have an accident. Be sure to check your policy or contact your insurance agent for any specific restrictions on your policy prior to out of province vehicle use.

Does my windshield really protect me?

Yes. Your windshield plays an integral part in roof crush protection in a roll-over accident. It also provides the brace for your passenger-side airbag. If your windshield loses adhesion on a collision or rollover, your safety is in jeopardy. This is why it is important that your auto glass work be done by a trained professional.

What Are OEM Parts?

Original Equipment Manufacturer (OEM) Parts

 
This refers to a part that is made by the same manufacturer as the genuine part you would receive from your local automotive dealer. Believe it or not most carmakers do not manufacture and produce the parts they use to build their automobiles. Most carmakers use outside independent companies to help them design and manufacture the parts used in your car. Carmakers put them in their own boxes, with their logos, to make you believe that you are buying a part that the carmaker made itself. This could not be further from the truth.
 
After a certain time frame the actual manufacturers of these parts are allowed to sell them to other wholesale distributors for resale. However they come packaged in a box with the name of the actual manufacturer of the part. Its not an inferior part, its just put into a different package, and usually sold up to 70 percent cheaper than the dealer originally sold it for and continues to sell. In most cases the part will be identical with the exception of the packaging.

What actions should I take before going to a Collision Reporting Centre?

1. If it is safe to do so, remove vehicles from the roadway.
2. Call Police to ensure police presence is not required and obtain the location of the closest Collision Reporting Centre.
3. Exchange information with the other involved parties, including independent witnesses. (Names, addresses, phone numbers, insurance companies and vehicle particulars, etc.).
4. As soon as possible, bring your vehicle to the Collision Reporting Centre most convenient to you.
5. Bring documentation with you to the Collision Reporting Centre (e.g. driver's licence, ownership and insurance, etc.).

Under what circumstances will an Accessible Parking Permit be issued?

To an individual who meets the following criteria:

• Cannot walk without assistance of another person or a brace, cane, crutch, a lower limb prosthetic device or similar assistive device or who requires the assistance of a wheelchair.
• Suffers from lung disease to such an extent that forced expiratory volume in one second is less than 1 litre.
• Portable oxygen is a medical necessity.
• Cardiovascular disease impairment classified as Class III or Class IV to standards accepted by the American Heart Association or Class III or IV according to the Canadian Cardiovascular Standard.
• Severely limited in the ability to walk due to an arthritic, neurological, musculoskeletal or orthopedic condition.
• Visual acuity is 20/200 or poorer in the better eye with or without corrective lenses or whose greatest diameter of the field of vision in both eyes is 20 degrees or less.
• Condition(s) or functional impairment that severely limits his or her mobility.

His or her condition must be certified by regulated health practitioner. Please note that a person's age does not qualify him or her for a permit. Applicants can apply even if they do not own a car or have a driver's licence.

Non-profit Organization: An organization operating on a non-profit basis to provide transportation services to disabled persons may be issued a number of permits equal to the number of vehicles owned or leased by the organization.

Corporation (Company): A company may be issued a number of permits equal to the number of vehicles owned or leased by the company primarily to provide transportation services to disabled people.

Temporary Accessible Parking Permit: A temporary Accessible Parking Permit will be issued by a Driver and Vehicle Licence Issuing Office in the following circumstances:

• At the time an application for an Accessible Parking Permit is submitted to a ministry Driver and Vehicle Licence Office.
• If a permit has been printed and mailed but the applicant has not received it.

Is Windshield washer fluid just soap and water?

Windshield washer solvent has a toxic alcohol base to keep it from freezing. The solvent should never be used in concentrated form because it can harm the car's painted and waxed surfaces. Mix the solvent to the manufacturers recommendations for the freeze point you feel is safe for your area. Some brands, usually sold in gallon containers, come diluted but may not protect to a low enough freeze point, which is important, due to the cost of the windshield washer reservoir and other components.

How do I get the most car insurance for my dollar?

Keep your deductibles high and your liability limits high. You'll get a lot more coverage for your cash that way

I have a crack or a ding in my windshield - is it really important that I fix it right away?

Yes! It's important for two reasons:

• If the ding is small, it may be repairable. That means your glass shop can "mend" the break without replacing your entire windshield. Repairing your windshield typically takes 30 minutes.  But the longer you let the damage remain without having it fixed, the more dirt and debris will collect in the break - and the more the break will spread. If it gets too big, it's very likely that a replacement will be necessary.

• The second reason to have a damaged windshield fixed is for your own safety. The windshield is more than just a "shield" from wind and road dirt, it's an important structural element of your car. It helps keep you and your passengers in the car in a front impact accident, and keeps your car's airbag in the optimum position so it can function as designed. If your windshield is weakened due to damage, it could be dangerous to you and your passengers in the event of an accident. Also, damaged glass may cause optical impediments when driving, particularly at night, which is a significant safety hazard.

What Are Aftermarket Parts?

Aftermarket parts are just the opposite of OEM parts. These parts are produced by companies other than the original manufacturer but are made to fit and perform as well as the original. Aftermarket companies buy the rights to reproduce these parts and supply them to the same wholesale distributors as the OEM parts. These parts are generally produced with the same machinery and materials but because they were not designed in the same manner, the part may have minor differences in appearance and feel.
 
Some aftermarket companies, upon getting the right to produce a part, may find a way to improve a part by redesigning it. This results in a superior part and often a less expensive one. There are a variety of high quality aftermarket parts that can be purchased and live up to all the expectations of the OEM equivalent part at a much lower price.
                                                                                                                                  
In both cases, OEM and aftermarket parts, the part should serve its purpose and perform the function it was designed for. As the car owner, it is your choice that ultimately decides which part is chosen. By knowing these few things you can more easily determine which is best for you and your car. Remember in most cases buying a part from the carmaker or dealer does not mean you get a better quality part. The same part can be purchased at a fraction of the cost and still give you that same piece of mind feeling.

What are Collision Reporting Centres?

A Collision Reporting Centre is a facility created to help motorists in reporting motor vehicle collisions. This service is currently available in a number of urban centres. No fees are charged.

How can I obtain an Accessible Parking Permit?

Applications for permits can be picked up at any MTO Driver and Vehicle Licence Issuing Offices. Completed applications can be taken to any Driver & Vehicle Licence Issuing Office, or send to :

Ministry of Transportation
Licence Renewals Section, APP Unit
P.O. Box 9800
Kingston, ON  K7L 5N8

My car doesn’t smoke, does it still pollute?

A large portion of the "brown cloud" over our cities is caused by vehicle pollutants (unburned hydrocarbons from fossil fuels). Two decades ago the PCV valve was one of the first emission devices and was easy to check and replace. Today’s computerized engine controls demand high tech equipment and testing procedures. The various computers and controls simprove engine efficiency and performance, but need periodic checking, adjustments and maintenance. When malfunctioning, these systems can cause hard starts, hesitations, poor performance and add deadly chemicals to our environment.

When can my premium rates increase?

Whenever you renew your policy, apply for a new one, or change your insurance coverage / contract.  e.g. change drivers or vehicles, or are involved in an accident or traffic violation.

What's the difference between my windshield and the other glass in my car? Isn't glass just glass?

No - there's a very important difference between your windshield and the rest of the glass in your car.

Your windshield is made of Laminated Glass, which is designed to offer optimum safety in the event of a crash. Laminated Glass is made up of two pieces of glass, with a thin layer of vinyl sandwiched between them. The three pieces are laminated together by applying heat and pressure in a special oven called an autoclave. When a small object strikes a piece of safety glass, often only the outer layer struck breaks.

In severe impact situations, the glass "shatters" but usually does not fly apart - the broken pieces of glass generally adhere to the vinyl inner lining.

The side and rear windows are made of Tempered Glass. This type of glass has been put through a special process where it is heated, then rapidly cooled. This "tempering" process makes the glass many times stronger than un-tempered glass of the same thickness.

If broken, tempered glass is designed to disintegrate into small pieces of glass about the size of rock salt. There should be no large, jagged pieces of glass to injure the driver or passengers.

When do my tires need replacing?

Tires are typically replaced when their natural lifespan has come to an end. There are however any number of factors that can affect this including storage, temperature, surfaces they are driven on, how aggressive of a driver you are, punctures, etc.

The usual recommendation for replacing tires is when they no longer feel safe to the driver. You can see when they are legally worn out using the tread wear indicator. A typical set of tires under normal driving conditions will last approximately 40 000 miles or 64 000 km. Some tires of-course are designed for much longer, even up to 80 000 miles or 128 000 kilometers.

How often should antifreeze be replaced?

Antifreeze should be replaced every two years due to oxidation and deterioration of important additives. These additives lubricate the water pump and protect metal parts from rust and oxidation. They also help keep coolant hoses soft and flexible. Today we can recycle and clean old antifreeze, replacing the additives. Antifreeze is very toxic and not environmentally friendly so recycling makes good sense. The engine's thermostat should also be replaced every 2 years to keep the engine operating temperatures in the proper range.

How does a car insurance company set my premium?

Insurance companies consider several factors that vary between insurance companies.. These factors include where you live, the kind of car you drive, your age and gender, the level of coverage you want, and your driving record, previous claims, among other things.

Does my car have to go back to the dealer for all services?

Preventative health care is important for peak performance and longevity. Preventative maintenance for today’s hi-tech cars helps keep small problems from becoming large expensive ones. Most new car warranties are affected by scheduled preventative maintenance, meaning that maintenance must be done in order to keep the factory warranties in affect. New car dealers would like you to believe that they are they only facilities that can perform these services. This is not true. Anyone can perform the required services, as long as the parts used are Original Equipment quality and all maintenance is performed on time per the manufacturers recommended schedule.

What is no fault insurance?

No fault insurance covers the injury-related expenses of the policy holder in the event of an accident, regardless of who was at fault.

Your insurer will automatically pay for your damages, up to your policy limits, regardless of who was at fault for the accident. In exchange for this guaranteed payment, you give up some of your rights to sue the other driver(s) involved in the accident. By the same token, you are also protected from being sued in the event you are at fault in an accident.

No-fault insurance can restrict recovery for pain and suffering as well as limit loss payments. Depending on your province, you may be allowed to sue for non-economic damages if the amount of these damages exceeds a specific amount. Be sure to check with you insurance agent for further details.

What is a CV Boot?

Front wheel drive cars and 4 wheel drives use flexible axle shafts with Constant Velocity joints or CV’s for short. The CV joints allow the axle shafts to spin the front wheels while moving up or down over bumps or turning corners. The CV joint has a protective rubber boot that keeps grease for lubrication in, and dirt and water out. When the rubber boot breaks the CV joint loses grease and starts to "click," especially during cornering. The broken boot should be replaced as soon as it is noticed to help avoid costly repairs.

What is a deductible?

It's the amount of money that you agree to pay before a certain auto insurance policy kicks in. Deductibles are designed to cut down on insurance costs by eliminating small or frivolous claims. The higher the deductible you're willing to pay, the lower the premium.  You should select your deductible based on the amount you are prepared to pay out of pocket in the case of an occurrence.  Despite having an insured loss, in some cases, it may be advantageous to pay out of pocket so as not to have a claim that may negatively affect your insurance rates in the future.

Should I have my car checked before a long trip?

Summer outings should be enjoyable and not spent in a roadside repair shop with someone named Gomer under the hood. Have your car serviced and fluid levels checked before any long road trip and don’t forget the windshield washers and wipers. Radiator hoses and fan belts are one of the main causes for breakdowns. Hoses deteriorate from the inside out so looks can be deceiving. Wheel bearings should be packed and correct tire pressures will give a smoother ride and better fuel economy. A little preventative maintenance can help insure you won’t get to know Gomer.

What is comprehensive coverage?

This policy covers the cost of repairs to or replacement of your vehicle should it be stolen, vandalized, struck in a hit-and-run, or damaged by an "act of God." Covered events vary from policy to policy but usually include fire, flood, and falling objects. This policy is generally optional.

Why can't I use plain water in my radiator?

Your car's engine makes enough heat to destroy itself so a cooling system is needed. Antifreeze mixed with water at a 50/50 ratio provides freeze and boiling protection. Too much antifreeze can cause heat transfer problems which can result in overheating. If you experience overheating, turn the a/c off and the heater on to help remove heat from the coolant. If the engine temperature light comes on or the gauge goes into the red zone, the engine should be turned off quickly and allowed to cool down to avoid costly engine damage. Plain water will start a rust process that is almost impossible to stop. Rust particles deteriorate the entire cooling system, water pump, radiator, hoses, thermostat etc.

What is collision coverage?

This policy helps pay for repairs or fair market replacement cost if your car is damaged in an accident caused by you or an authorized driver. This policy is generally optional.

Should I convert my car air conditioner's refrigerant from R12 to R143a?

Yes if you have a major system failure. Freon makes your car's air conditioning system work--it's nasty stuff as far as the ozone layer is concerned. Production of Freon has been ceased in the US. There are substitutes that require conversions and are rather costly. If your a/c system is going to require an overhaul, you may be asked to consider changing to a new substance. The question is, "convert or not convert"? The general industry consensus is to convert, for several reasons. Environmental and cost are the 2 main reasons. The old R12 Freon is still available and can be used until the supply is gone which could be several more years but it is getting expensive. The newer refrigerant is called R134a and will not be quite as efficient as the old stuff but will work very well even in our desert environment.

What is uninsured motorist coverage?

This policy covers the cost of injury or damage caused by another driver who is not insured. It covers the policy holder, authorized drivers, and any passengers. It usually consists of separate limits for bodily injury and property damage. This policy is required in some jurisdictions.

Why should I change my timing belt?

Most of today's engines use timing belts, and are an important preventative maintenance item. In yestersyear they were made of metal and called timing chains. As engines became smaller and lighter, rubber belts replaced the heavier chains that had to be lubricated. The belt deteriorates with heat and age and lasts about 60,000 miles or 5 years although some makes have increased the life expectancy. The timing belt's job is to keep moving parts, primarily valves and pistons, in time with one another. If the timing belt is not replaced, it will eventually break, leaving you stranded, and on some models causing further engine damage which can be extremely expensive to repair.

What is medical payments coverage?

This policy pays the medical bills of the covered driver, family members, and passengers when injured in an accident, regardless of who was at fault. This coverage is required in some states, but not in others.

Does brake fluid really need to be changed?

The average driver uses their brakes 75,000 times per year and takes for granted that they’ll work every time. Today’s brake systems are hydraulic and use brake fluid which is hydrophilic, meaning it can absorb moisture from the air. Once the hydraulic system has moisture in it, corrosion takes place and brake components fail. Brake fluid should be flushed periodically to keep corrosion under control. This procedure is not expensive and is included in many preventative maintenance schedules. Brake fluid should be handled with care. It will melt plastics and remove paint.

What is property damage coverage?

It's the part of liability coverage that insures you against the cost of damage to another's property caused by you in an automobile accident. "Property" includes other cars, houses, fences, telephone poles, etc.

I hit a curb. Should I have the alignment checked?

Yes, often a little bump like that gets forgotten, especially if the car handles the same. Today’s cars are lighter with fewer and smaller suspension components and therefore less forgiving. If damage goes unnoticed, new tires may be needed. Look closely at the tread for uneven wear patterns or bald spots. Checking tire pressures helps tires last longer, improves handling and fuel economy. It’s important to set tire pressures at or just below the maximum rating on the tire.

What is bodily injury coverage?

It's the part of liability coverage that insures you against the injury you cause to others in an auto accident. It consists of two figures. One limits the cost of injury coverage per person injured, and the second limits the total dollar amount of injury coverage (for everyone injured.

Why do brakes squeak?

Today’s cars are equipped with front wheel disc brakes; some models even have 4 wheel disc brake systems. Disc brakes work much like a modern bicycle’s brakes. Brake squealing and noises are common with various causes. Most often it is caused by dust and high frequency vibrations of the brake pads, much like the way a cricket makes noises by rubbing its legs together. Worn brake linings also tend to be noisy. Brake systems should be checked regularly and worn parts replaced before ruining expensive calipers and rotors.

What is liability coverage?

Liability coverage insures you against the cost of injury and damage you cause to another in an automobile accident. It's made up of two policies, bodily injury liability, and property damage liability. Auto liability insurance is required in most regions.

If someone borrows my car, are they covered under my auto insurance?

As a general rule, auto insurance coverage actually follows the vehicle, not the driver. So if your car is involved in an accident, the car typically receives the full coverage provided by the auto insurance policy, regardless of who is driving.

Auto insurance policies normally provide coverage for your car if it is driven by any of the following people:

• You, the "named insured"
• Your spouse, as long as he or she lives in your household
• Other family members who are related to you by blood, marriage, or adoption
• A foster child who lives in your household
• A child who is away at college but still considers the address listed on your policy as a permanent address
• Anyone to whom you lend your car

Your insurance company may require that certain conditions be met in order for other drivers to be covered under your policy. For example, anyone who drives your car must typically be a licensed driver. Additionally, most insurance companies require that anyone driving your car be doing so with your permission.

Because these conditions can vary, it is important to check your policy carefully and make sure you understand any limitations that might apply before you allow others to drive your car.

Do I get penalized on my insurance for speeding tickets? How does the insurance company know if I have received any tickets?

Many insurance companies will forgive one moving violation, like a speeding ticket (less than 30 km/h over the limit), but they are unlikely to overlook two in a three-year period. If you want to stay at the highest rating level, and pay the least for your insurance, you can't have more than one moving violation in a three-year period. Otherwise, you drop to a lower classification and pay up to 20 percent more for your insurance. A third conviction in three years could mean an increase in your insurance premium of at least 25 percent. It might even oust you from the regular insurance market and force you into the so-called "high-risk" market where you could pay as much as 250 percent more for your insurance.

However, unless you are applying for insurance at another company, or your current insurance company happens to do a random check on your Motor Vehicle Record (MVR) (which it might be more inclined to do if you were involved in an accident), it is unlikely that a moving violation would come to light.

A moving violation stays on your MVR for two years. However, if you are applying for insurance at another company, you will be asked whether you have had any tickets in the last three years.

How long do I have to go back in reporting an accident or traffic ticket on my insurance application? Will the company find out about it if I can't remember?

Generally, you will be asked for details of any accidents or claims during the last six years (including claims under your Comprehensive coverage, like theft, windshield damage, etc.). You will also be asked about your conviction record in the last three years. This includes any offences relating to the operation of your car, like speeding tickets, seat-belt infractions, or other moving violations. You can obtain your Motor Vehicle Record (MVR) for the last two years from the Ministry of Transportation, but insurance companies require a three-year history. Therefore, if you are not sure of convictions or accident dates, ask your current insurance provider, or tell your prospective insurer you can't remember exactly. If you say you haven't had any tickets in the last three years and the insurer discovers otherwise -- and it will -- it may refuse your application or charge you more for your coverage. Any inaccuracies or omissions in your policy, intentional or not, could result in your policy being declared invalid.

Therefore, it's a good idea to keep a record of the dates of any tickets, accidents, or claims, because how many of us can remember if that minor accident happened six years ago or seven? It makes a difference to the insurer.

If I have claims under my Comprehensive auto insurance, will my rates go up?

They shouldn't, because Comprehensive claims are not considered at-fault accidents. Remember, rates increase because of fault, not because of the money paid out by the insurance company to settle a claim. HOWEVER, you should be aware that, although insurers in certain provinces cannot raise your rates or refuse to renew your automobile policy because of Comprehensive claims, they can raise the deductible on your Comprehensive coverage, or even delete that coverage altogether if they think you have had more than your share of these kinds of claims. In other provinces, they might even refuse to renew your entire auto policy as a result of frequent Comprehensive claims. Although Comprehensive losses are not your fault, insurers believe that these kinds of claims can, to a certain extent, be controlled by taking certain precautions (eg., a car that is broken into repeatedly for its stereo equipment, for example). Even though, in most cases, Comprehensive claims are beyond your control, they still go on your insurance record, so don't assume they won't affect your rates or your coverage.

If I stop driving for a number of years and then start again, will I have to pay for my insurance as if I were a new driver?

No, you shouldn't -- and in some provinces, you can't -- be treated as a new driver. Although it was more common in the past for insurance companies to penalize drivers who have a gap in their insurance coverage, this happens less frequently now. (The exceptions would be if the lapse was due to cancellation of your policy for non-payment of premium, an accident that was not reported to the insurance company, or suspension of a driver's license because of a conviction like impaired driving.) However, to be on the safe side, you should consider returning to your previous insurance company or to a company with which you already have a history -- like your property insurer -- when you resume your coverage. You will need to prove you had prior insurance in order not to be rated as a new driver.

If you know there will be a lapse in your insurance, inform your insurance provider before you cancel your existing coverage, and ask for a letter outlining your policy number, insurance company, time insured, and claims history. It is also a good idea to prepare a letter in duplicate explaining why you are letting your coverage lapse. Have your insurance provider sign both copies, and leave one copy with him or her. That way, you will have proof of prior coverage when you need to reapply for insurance. If you have been driving outside the country, bring written proof of insurance from your previous country of residence.

If my car door is replaced following an accident, but the paint doesn't exactly match the other doors, shouldn't my insurance pay for repainting the whole car?

It's understandable that consumers would expect insurers to do this. It's bad enough having to suffer the inconvenience of doing without your car for several days, especially if you didn't even cause the accident, and naturally, you want your door to match the rest of the car, as it did before. However, your insurance won't pay to have your whole car repainted if only one door was damaged. Otherwise, you'd end up better off than you were before the accident, with a new paint job on an older car. This is known as "betterment."

You can insist on having your whole car repainted, but you will have to make up the difference in cost, or agree with the insurer on the amount of your contribution to the new paint job. Different companies have different policies in this regard, and often a decision is made on a case-by-case basis. Discuss it with your insurer and negotiate your contribution.

Insurance is intended to put things back to the way they were before, not to make them better than they were. If insurance companies were to pay for repainting an entire car to repair a scratch in one door, we would all pay higher premiums. It's up to insurance providers to explain this to consumers, and unfortunately, many of them fail to do so.

What changes are planned for automobile insurance in Ontario to help reduce rates?

Key initiatives announced in the Ontario government's recently released white paper "Automobile Insurance Affordability Plan for Ontario: Next Steps" are designed to contain the rising cost of lawsuits while improving access to needed benefits. The government is inviting public comment on these initiatives, which include:

• Amending the threshold at which an injured person can sue for pain and suffering to focus on severe physical, rather than mental or psychological, injuries.
• Expanding an injured person's right to sue for excess health care expenses.
• Eliminating the deductible for pain and suffering awards over $100,000.
• Providing protection for persons who may be sued as a result of an automobile accident, even though they were not present at the accident.

The white paper follows the government's announcement the previous week of new regulations aimed at addressing cost pressures, fraud, and abuse, such as: a new assessment and treatment program for whiplash and related minor injuries; restrictions on the use of medical examinations by insurers; prohibiting cash settlements for accident benefits until one year has passed, allowing injured people to continue to have access to treatment and income replacement; and a broadening of the definition of unfair or deceptive acts or practices to apply to health- care providers and paralegals in the auto insurance system, requiring claimants to sign treatment plans, and permitting insurers to request that a claimant be examined under oath where there is reasonable concern about accident circumstances.

The government has also directed the Superintendent of Financial Services to conduct reviews of: existing fee schedules used by various health-care providers treating accident victims; and rules used by insurers, to ensure that insurance companies are not unfairly denying coverage to consumers. In addition, the government has directed the Superintendent of Financial Services to require insurers to refile their rates, where appropriate, in light of the savings from this action plan.

If insurers do not respond "immediately and appropriately by passing on savings to consumers," says the paper, "the government will take action, including measures directly targeting auto insurance premiums, to ensure that auto insurance remains affordable and available for Ontarians. These measures could include rate caps, rate freezes, or rate roll-backs."

What happens if I get hit by a hit-and-run driver, or a car that isn't insured? Can I still claim for the damage to my car?

If your car is damaged by a hit-and-run driver who cannot be identified, you must claim for the damage under your Collision or All Perils coverage. If you do not carry this optional insurance, you will have to pay for any repairs yourself -- something to consider if you are thinking of dropping your Collision or All Perils coverage to save money on your premium.

In the case of an uninsured (but identified) driver, your Uninsured Automobile coverage, which is included with your basic automobile insurance, will kick in, but again, only if you carry optional Collision or All Perils insurance. Your claim is also subject to a mandatory deductible that applies even if you aren't at fault in the accident.

Note: Your Uninsured Automobile coverage will, however, pay for injury to you or your passengers caused by an uninsured or a hit-and-run driver, subject to a certain limit, regardless of whether you carry Collision/All Perils coverage.

What the heck is going on with car insurance rates? Why are they so high?

There are several reasons why automobile insurance rates have gone up so much in the last few years. The main reason, however, is the rising cost of claims, particularly for bodily injuries. According to data provided by the Insurance Bureau of Canada, in every province, growth in claims — particularly injury claims — has outpaced premium growth for several years. Whereas insurers could previously rely to a certain extent on investment income to offset losses sustained in underwriting, that is no longer possible with the deterioration in the financial markets, and so they have raised rates accordingly. Also, following the events of 9/11, global reinsurers (the companies who provide insurance to the insurance companies) were hit with billions of dollars in claims, driving up the cost of reinsurance. Finally, insurance fraud costs Canadian policyholders more than $1.3 billion each year -- about 10 per cent of total premiums paid, according to the Canadian Coalition Against Insurance Fraud.

In a heavily regulated industry such as car insurance, it will take legislative changes to stabilize rates. Fortunately, reforms are under way in New Brunswick and Ontario that will cut the cost of claims, primarily those resulting from minor soft-tissue injuries, without compromising treatment for accident victims. The four Atlantic premiers have also promised to adopt a common, harmonized plan to reduce costs and lower premiums.

Does the type of car I drive affect the cost of my insurance?

Yes. Although it does not usually affect the premium you pay for Third Party Liability insurance, it does affect the cost of coverage for physical damage to your car. Insurance companies rate vehicles according to their safety record and cost to repair or replace them. Collision, Comprehensive, and Direct Compensation insurance premiums vary according to these ratings.

The Canadian Loss Experience Automobile Rating (CLEAR) system rewards car owners with lower premiums for buying vehicles that experience fewer and smaller losses. For example, some vehicles may be more susceptible to theft than others; some may be better designed and less easily damaged; some are less expensive to repair; some protect their occupants better than others.

The CLEAR system was developed by the non-profit Vehicle Information Centre of Canada (VICC), which is sponsored by the automobile insurance industry. Checking before you buy could save you significant premium dollars. For more information, including ratings for specific models by year, visit the Web site at www.vicc.com.

Note: The type of car you drive is only one factor in determining the price of your insurance. Others include where you live, how far you drive, whether or not you drive your car to work or use it for business, your age, and, most importantly, your driving record.

If I have been driving for many years without a claim, but have an accident in which I am at fault, will my rates go up? How long does the accident stay on my record?

It's almost certain your premium will go up if you have an accident in which you were at fault, either completely or partially. Some insurance companies will "forgive" one at-fault accident if you are a long-term customer with an otherwise good record, but don't count on it, especially in today's tight market. Most likely, your insurer will lower your rating by at least one star, and possibly knock it all the way down to zero. Count on paying a minimum 15-20 per cent more as a result.

Your chances of being forgiven are much less if you are a new client, or if your insurer's prices are significantly lower than its competitors (the insurer maintains its price advantage by taking a hard line at claims time). That's why you should think twice before switching companies in order to save a few bucks on your premium -- it could cost you more in the long run. Ask what the new company's forgiveness policy is for an at-fault accident before you make your decision.

An at-fault accident stays on your driving record for as many years as it takes to requalify for the best driving level -- six years for six stars, even if you move to another province. If you apply for insurance with another company, you will be asked on the application if you have had any accidents in the last six years and, if so, whether you were found to be at fault in any way.

Is the insurance company allowed to replace parts in my car with used parts when repairing it after an accident?

Yes. The insurance policy says that the company has the right to repair, rebuild, or replace any damaged parts with other parts "of like kind and quality." That means that if you rear-end a car and damage the bumper on your four-year-old car, the insurer will likely replace your bumper with a used one of the same kind and quality as the original. If insurers were to replace old parts with new, our insurance premiums would be a lot higher.

Unlike your homeowners policy, which is usually sold on the basis of replacement cost (meaning that lost or damaged items are replaced at today's value), automobile repairs are made on an actual cash value basis. That means that depreciation is taken into account when your car is repaired.

If it is a safety-related issue, it's a different story. For example, a worn tire would be replaced with a new one. However, in that case, you would be expected to pay the difference between the new tire and the actual cash value of your existing tire.

If I buy a new car, is it automatically covered under my existing policy?

Your automobile policy provides automatic coverage for a newly acquired automobile, as long as your insurer is notified within 14 days of you taking delivery of the new car. However, for this coverage to apply, you must have all your vehicles insured with the same company.

CAUTION: If one vehicle has less coverage than another — for example, if one doesn't have Collision insurance — then the coverage on the new vehicle would be the same as the LOWEST coverage on any existing vehicles. In this example, it would mean there would be no Collision insurance on the new car — obviously not a good idea.

The best solution is to arrange with your insurance provider for coverage on your new car BEFORE you pick it up. Use the automatic coverage only as a safety net if you are unable to reach your insurance proivder before you take delivery of the car.

My husband and I each have our own car. My husband recently had an accident, and the insurance company said he was at fault. Now the company wants to increase MY insurance premiums because of HIS driving record. Why?

The insurance company can do this, and it will. Insurers assume that, even though the spouse does not normally drive the insured person's car, the opportunity is there for him/her to do so.

There is an endorsement that can be added to your policy to exclude a specific driver, like your husband, from using your car. However, before you go to this extreme, consider the consequences. If your husband had to drive your car in an emergency — even with your permission — and had an accident, the insurance would not pay for the damage.

I recently had a car accident. I was not charged by police, but now my insurance company is saying that I was at fault. How can it do this?

Insurance companies decide whether or not you are at fault based on regulations set out in the provincial Insurance Acts. These "fault determination rules" are not related to charges laid or not laid by police under the Highway Traffic Act or the Criminal Code of Canada. This means that, even though you were not charged by police for your accident, you can still be found at fault, either partially or completely, by the insurance company.

By the same token, you could be charged by police, but determined to be not at fault for insurance purposes. If you are not at fault, your premiums should not go up; if, on the other hand, you are judged to be at fault to any degree, your premiums will increase.

Fault determination rules cover more than 40 accident situations, using diagrams to illustrate specific accident scenarios. These rules are applied regardless of the circumstances of the accident -- road or weather conditions, visibility, point of impact on the vehicles, or the actions of pedestrians, much to the chagrin of many consumers who believe there should be some leeway for poor conditions or other circumstances that they feel are beyond their control.

Is the insurance company allowed to cancel my car insurance, even though I legally must have car insurance?

Yes, it is, generally for two main reasons:

• Non-payment of premiums: Your insurance premium is due as soon as you receive the bill. If you don't pay it, your insurer will cancel your coverage, plain and simple. So don't let your payment go into arrears! If you can't pay the premium as promised, contact your insurance provider before the account is considered delinquent, and a solution may be reached. If your payment is automatically deducted from your bank account, make sure you always have enough money in the account to cover it.
  
  Another important point: If you have decided to switch insurers at renewal time, don't think that simply ignoring your renewal notice will terminate your agreement with your previous insurer. You must notify the insurer in writing of your intention not to renew; otherwise, you are still committed to that insurance and on the hook for the payment.
• Inaccuracies or omissions in your application, intentional or not: The insurer could also cancel your insurance if you didn't report a change in the risk — for example, if you start using your car to deliver pizza, while your insurer thinks it is being driven for pleasure only.

Having your insurance cancelled is inconvenient enough, but it gets worse. The cancellation will appear as a black mark on your insurance record that will follow you as you scramble to find coverage elsewhere — at an inflated premium, thanks to your now-blemished record.

Note: There is a difference between cancellation and non-renewal. Cancellation of your insurance could take place at any time during the coverage period, usually for the reasons listed above; non-renewal means the insurer chooses not to renew your coverage at the end of its term. This could be for a number of reasons, but most likely because you have had too many claims and the insurer considers you a poor risk. In this case, you'll almost always end up paying considerably more to the new insurer because you were "non-renewed" by your previous insurance company.

My husband and I own three cars. My son is only an occasional driver, but the insurance company wants to rate him as a full driver and charge a much higher premium, even though the cars are registered in my husband's and my name. Is this allowed?

Yes, it is allowed, and is common practice among insurers. And while it may seem like a money grab, there is some logic behind the practice. The thinking goes that, if there are three cars and three drivers, each driver must be rated as a principal driver. Since your son, in theory at least, has access to a car at all times, he cannot be rated as an occasional driver. Even though you may control your son's access to the car, if insurance companies did not take this position, sons and daughters everywhere would register their cars in the name of their parents and then claim to be occasional drivers. They'd save money on their insurance, but everyone else would have to pay more to subsidize their higher accident rate.

If you are a long-term client with a good claims record, you may be able to convince your insurer to reconsider its position, but don't count on it.

We are planning a trip with our car through the U.S. and into Mexico. Do we need special insurance to drive in those countries?

Your insurance in Canada covers you for driving anywhere in the United States (including Hawaii and Alaska), but not in Mexico. If you are planning to drive in Mexico, you will need to buy insurance coverage from a licensed Mexican insurance company. Check with your insurance provider or travel agent before you go.

It's also a good idea to ask your insurance representative what the claims procedure would be if you were to have an accident while driving in the U.S. Also make sure that your insurance doesn't expire while you're away, and that you're carrying enough liability insurance. Remember, any lawsuits filed against you there would be payable in U.S. dollars, and payouts for personal injury lawsuits can be hefty in some states.

My daughter will be moving to the U.S. temporarily to attend college. She will be driving her own car there. Can she keep her Canadian insurance policy, or does she need to purchase insurance in the U.S.?

As long as she still has a permanent residence in Canada and is just away to attend school, she can continue to use her Canadian insurance policy. There is no time limit, and it is not necessary to obtain a driver's license in the U.S. either.

However, some insurance providers are now insisting that policyholders advise them if they are going to be living in a different geographical area, even on a temporary basis. The insurance company will then alter the premium to reflect the increased (or decreased) risk of the insured driving in that area. Therefore, to be on the safe side, your daughter should inform her insurance representative before she leaves. Unfortunately, she may end up paying a higher premium as a result.

If I lend my car to a friend, and he has an accident, does his insurance cover it?

No! If you lend your car, you also lend your insurance. If your friend — or anyone else, for that matter, like a parking valet — has an at-fault accident while driving your car with your permission, it will go on your insurance record and you'll take the hit on your premium. Insurance does not follow the driver; it goes with the car.

However, there is a solution to this problem -- the "27 endorsement," which covers damage to a car that you are driving but don't own. It's fairly inexpensive to add to your automobile policy. It comes into play only if the policyholder is legally liable for the damage; otherwise, the other party's insurer pays.

The 27 endorsement can also be used for insuring rental cars, an economical alternative to purchasing the rental agency's collision damage waiver. Ask your insurance representative about this option.