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Old 10-28-2009, 04:10 PM   #1
hockeyfan27
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Summer rides, Winter beaters & Insurance

As the winter driving season approaches we all get prepared in different ways. Some bolt on the winter tires to their ‘year round’ vehicle. Others put their only car away and purchase a Metro Pass. The rest tuck their summer ride away for the winter hibernation and pull the ‘winter beater’ out from the cob webs. Each of these scenarios requires different consideration with respect to your automobile insurance.

First, it is most important to note that your Ontario Automobile insurance policy affords you coverage even when you are not in your vehicle. Your ‘Accident Benefits’ coverage (income replacement and rehabilitative care) follows you when you are a passenger in a friend’s vehicle or even a pedestrian on the sidewalk. For that reason it is important that you understand how changing your insurance to fit your winter driving situation can affect your coverage.

For those of you who own one car and drive it all year long, your situation is straight forward and your insurance needs do not really change. I recommend that the minimum liability coverage anyone should carry is one million dollars. However, with the way lawsuits have been going recently, two million dollars is preferential and not that much more expensive, maybe $20-$200/year. Also, If you don’t carry collision coverage year round, some choose to add it in the winter months as the chance of a ‘hit & run’ is much higher and would not be covered if you don’t.

If you prefer to stay off the road all together and take public transit, in the past you most likely have called your broker/agent and ask that they put ‘parking coverage’ on your laid-up vehicle. The downfall of this arrangement is that you have also inadvertently removed your accident benefits coverage. If you are injured when riding in, or struck by, an uninsured vehicle you could be left to foot the bill for your recovery. Rather than requesting ‘parking coverage’ ask for suspension of road coverages (OPCF 16). This endorsement leaves your accident benefits and other physical damage coverage intact but at a discounted rate. When you want to lift the suspension of coverage call your broker/agent and have (OPCF 17) applied. The only draw back to this is that the monthly withdrawals continue through the lay up period and premium saved is applied as a credit once the suspension is lifted

If you have dedicated winter and summer cars then your may think it’s safe to simply put parking coverage on your summer vehicle and road coverage on your winter beater. As the Accident Benefits coverage will continue on the vehicle carrying road coverage you’re in the clear, right? Not exactly. Your concern now is maintaining physical damage coverage on your laid up vehicle. When consulted about this situation I ask two questions:
1- Is your car currently financed or leased?
2- Where you have your vehicle parked, is there ANY chance it could be hit?
If your car is financed/lease, then usually the financing/leasing company will demand full coverage year round, the OPCF 16 & OPCF 17 endorsement may be agreeable to them, saving you some money. If your car is in a position where it could be involved in a collision either by an out of control car, sliding on ice or by another car backing out of a parking stop and you remove all coverage, leaving only comprehensive and your car is damaged by another car, you have no recourse for compensation. You can’t sue. You can’t make a claim. That’s the law in Ontario. A few years ago I had a client who parked his sports car in his garage for the winter. He felt confident it was a safe location. After an ice storm a car coming down a hill lost control, slid up his driveway and pushed his winter car through the garage door, into his sports car. His policies (home & auto) covered the damage to the winter car and the garage door, but he was stuck with the repair bill for the sports car. The OPCF 16 & OPCF 17 endorsement is your safest bet unless your car is completely out of harms way. Then leaving only comprehensive coverage would be fine.

Please keep in mind that the ONLY way you are protected from hit and run damage is under your collision coverage. Applying OPCF 16 & 17 suspends this coverage. Whatever your winter transportation arrangements are, be sure to consult with your broker/agent. Completely explain your situation and ask for recommendations. That is what we are here for.
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Old 10-28-2009, 10:19 PM   #2
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great post, alot of stuff in here i did not know about
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Old 10-28-2009, 10:39 PM   #3
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Glad you're here to explain the fine print
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Old 10-29-2009, 05:01 AM   #4
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A fantastic write up. Well done. Was really interested about this one.
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Old 10-29-2009, 08:12 AM   #5
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great info, but i have a question. it doesn't really effect me but i'm curious.

it's regarding this...

Quote:
Originally Posted by hockeyfan27 View Post
If you prefer to stay off the road all together and take public transit, in the past you most likely have called your broker/agent and ask that they put ‘parking coverage’ on your laid-up vehicle. The downfall of this arrangement is that you have also inadvertently removed your accident benefits coverage. If you are injured when riding in, or struck by, an uninsured vehicle you could be left to foot the bill for your recovery.
so what happens to people who never had insurance because they never had a car, but one day are strolling down the street and someone in an uninsured hits them? or even in the situation listed above, why would you be left to pay the recovery bills?
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Old 10-29-2009, 08:24 AM   #6
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I want to add that it's critical to leave the beater on the policy when you go back to the summer car. I just have mine on fire+theft, it costs peanuts and it allows me to force the insurance company to not be able to disavow the car, which has happened. I used to have an 86 535 for a beater and I had no problem flip-flopping which car was on the policy. Then one fine autumn day, I went to change them back and ING said that my car is too old for them. I said how was it not too old last winter but now is. They said sorry, it is what it is. After threatening to leave, they agreed to take it back with a safety certificate. After that was done, the dude on the phone told me next time, just keep it on fire and theft and change the coverage.
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Old 10-29-2009, 08:30 AM   #7
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^ Yes. For all those E30 20 + lol
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Old 10-29-2009, 10:08 AM   #8
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Quote:
Originally Posted by pawcio
great info, but i have a question. it doesn't really effect me but i'm curious.

it's regarding this...

Quote:
Originally Posted by hockeyfan27
If you prefer to stay off the road all together and take public transit, in the past you most likely have called your broker/agent and ask that they put ‘parking coverage’ on your laid-up vehicle. The downfall of this arrangement is that you have also inadvertently removed your accident benefits coverage. If you are injured when riding in, or struck by, an uninsured vehicle you could be left to foot the bill for your recovery.
so what happens to people who never had insurance because they never had a car, but one day are strolling down the street and someone in an uninsured hits them? or even in the situation listed above, why would you be left to pay the recovery bills?
If someone they lived with had an auto policy the Accident Benefits coverage would extend from that policy.

If they lived by themselves there would be no AB coverage through any Ontario auto policy. They need a lawyer.
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Old 10-29-2009, 10:12 AM   #9
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Quote:
Originally Posted by hockeyfan27 View Post
If someone they lived with had an auto policy the Accident Benefits coverage would extend from that policy.

If they lived by themselves there would be no AB coverage through any Ontario auto policy. They need a lawyer.
so related to this. is there some sort of insurance that a person in this situation could buy to avoid this?
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Old 10-29-2009, 10:13 AM   #10
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Quote:
Originally Posted by BigD View Post
I want to add that it's critical to leave the beater on the policy when you go back to the summer car. I just have mine on fire+theft, it costs peanuts and it allows me to force the insurance company to not be able to disavow the car, which has happened. I used to have an 86 535 for a beater and I had no problem flip-flopping which car was on the policy. Then one fine autumn day, I went to change them back and ING said that my car is too old for them. I said how was it not too old last winter but now is. They said sorry, it is what it is. After threatening to leave, they agreed to take it back with a safety certificate. After that was done, the dude on the phone told me next time, just keep it on fire and theft and change the coverage.
Good point! The age restrictions for a car currently on a policy and a car being added to a policy can differ. Though some companies have a max vehicle age and will not budge. (if it is a 'filed rule', they cannot budge)
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Old 10-29-2009, 10:27 AM   #11
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Originally Posted by pawcio View Post
so related to this. is there some sort of insurance that a person in this situation could buy to avoid this?
Start by asking your employer what your group benefit package includes. You can also purchase a personal accident & disability policy.
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Old 02-14-2010, 07:09 PM   #12
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Quote:
Originally Posted by BigD View Post
I want to add that it's critical to leave the beater on the policy when you go back to the summer car. I just have mine on fire+theft, it costs peanuts and it allows me to force the insurance company to not be able to disavow the car, which has happened. I used to have an 86 535 for a beater and I had no problem flip-flopping which car was on the policy. Then one fine autumn day, I went to change them back and ING said that my car is too old for them. I said how was it not too old last winter but now is. They said sorry, it is what it is. After threatening to leave, they agreed to take it back with a safety certificate. After that was done, the dude on the phone told me next time, just keep it on fire and theft and change the coverage.
Good point....if ure car is 19 just turning 20...dont remove the coverage...they wont cover it again especially ING or Belairdirect...thts y even in summer i keep the 90 4runner under parking insurance.
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Old 02-14-2010, 10:34 PM   #13
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Another question.....are there ne tricks to lowering insurance? I have to pay 580/month on my bimmer full coverage. 140/month on my 4runner full coverage....I DONT GET IT!!!

21, Male G2. No tickets/One accident not my fault. Was clipped by a pontiac sunflower/powder/fighter or wutever the hell its called with my 4runner.

4runner: needed a new front bumper. Pontiac went str8 to the junkyard. LOL (Front axle and tranny separated from the car).
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Last edited by Dammerung; 02-14-2010 at 10:36 PM.
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Old 02-14-2010, 10:36 PM   #14
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SUNFIRE :@ grrrrrr
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Old 03-27-2010, 08:19 PM   #15
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If someone they lived with had an auto policy the Accident Benefits coverage would extend from that policy.

If they lived by themselves there would be no AB coverage through any Ontario auto policy. They need a lawyer.
Sry to revive old post but came across this,

When someone is injured as a pedestrian, they become a claimant on the at fault party's claim. Given that the person who hit you was identified, you will be claiming under their Bodily Injury section which is part of their Third Party Liability coverage.

Your first source of coverage is your own AB section on your policy. If you don't have that or you go past your limit of coverage you claim under the BI of the other party.

That is how it works in "No Fault" (DCA provinces, ON, QC & NB).

In "Tort" provinces (all others & most of the states) you get a lawyer and sue the shit out of the other party !

Just putting this out there in case somone does need to tap into this insurance.
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