Can car tracking save B.C from the high auto insurance rates?

Drivers in B.C have another bad news waiting for them. Soon they are to become the highest paying province for auto insurance.

The news comes in the face of yet another increase of rates in November by the ICBC. By next year B.C. will overtake Ontario which till date has the most expensive auto insurance rates in Canada.

The situation came to light after it was revealed by the Canadian Taxpayers Federation (CFT). Director of CFT in B.C, Kris Sims quoted an Ernst & Young report published during the summer to the media.

According to it, B.C. drivers will have to cough up around $1,700 per year on an average as auto insurance premium. Just a year back the average rate per year used to be $1,550.

The rate is Ontario on the other hand is not more than $1,500. Also, the rate has been stable and didn’t increase in the recent past.

Sims blamed the monopolistic policy of the ICBC for the situation. She suggests turning the ICBC into a co-op so that B.C. drivers can participate and own it at the same time. Then it can be introduced to private competition.

The lack of options was another important issue for residents of B.C. Sims and drivers seem to agree that they need more options when it comes to purchasing auto insurance. Healthy competition can keep the rates stable and provide some relief to the drivers.

There was no representative from ICBC available to comment on the development. But it issued a statement to a news agency called News 1130. It confirmed that the average B.C. drive wound end up paying around $1,700 combining optional and basic insurance.

Many drivers in B.C. posses a good driving record but they are penalized for the mistakes of others. Sims also brings up the same topic. She questions why good and responsible drivers have to pay high premiums because of some terrible drivers. The people who drive terribly should be the ones to pay more, in her opinion.

The opinion makes sense and lately there has been some development in indentifying terrible drivers. Some insurance companies over the world and in Canada have started offering lower rates if drivers let them track their driving habits.

The idea is innovative and there had been some interest in the offer. The Intact Financial Corp. based in Toronto launched their tracking program “my Driving Discount” back in 2013.

Drivers can plug in a device or use a smartphone app which will track their driving. Factors like hard braking, sudden acceleration, and driving at night are included in the risk category and viewed as negative. Naturally, they will have higher rates than people with good driving habits.

Over 350,000 Canadian drivers took part in the tracking program which lasts for nine months. According to the company, most of the drivers get a discount of 10% to 25% by opting in.

B.C can benefit from such tracking program and offer a way to the drivers to get lower rates.

Tie the knot without tension with wedding insurance

What is common between weddings and insurance policies?

Someone asking this question is liable to be considered mad. But as it turns out, you can also ensure your wedding! Being a couple means a lot of mutual financial matters and wedding is a start of it.

Of course, you are not going to get coverage if your bride runs away! But pretty much everything apart from it can be covered with a wedding insurance policy.

What’s the thing about wedding insurance?

Many companies in Canada have started offering insurance policies for weddings. You can get coverage for different wedding related items like bridal dress to cancellation of the wedding. The nature of policies and items covered vary from company to company.

You can also get a complete wedding insurance package that covers a huge number of items and scenarios.

Why would you need wedding insurance?

On an average a wedding costs around $25,000, if not more. Couples plan for a long time, sometimes even a year before they finally tie the knot.

There are many things that can go wrong on the big day. Starting from damage to property to vendors dropping out, you can experience financial loss in many ways. The insurance ensures peace of mind for the wedding couple and compensates for any financial loss. In our time, it is better to make yourself safe in everything related to finances. This includes even the entertainment business. In order not to get into a scrape in such matter as gambling, it is recommended to select a proven game provider using, for example, NBSO casino online activities website, providing useful information about all trusted gambling sources (si vous parlez français est recommandé de sélectionner les meilleures sources de jeu en utilisant le site web des activités casino en ligne et de vérifier les informations utiles).

Sometimes the wedding venue that is rented will require the couples to be insured. A Stand Alone Liability policy can be used in this case. You will be covered for property damage and bodily injury if a third party claim is made.

Wedding insurance offers the added comfort for the couple and the guests.

What items are covered in wedding insurance?

The items covered differ from company to company. Under a complete wedding insurance package you can get many things covered-

  • Cancellation of the wedding
  • Damages to property, items like wedding attire, rings and rentals
  • Event liability and host liquor liability
  • Failure to produce wedding photos and videos
  • Suppliers failing to provide their goods or services (caterer not delivering food, DJ not showing up)
  • Damage or loss of wedding gifts, stationery and other items (certain items can be excluded)

Couples can also buy separate policies like a cancellation policy in case the wedding is cancelled or postponed. Many insurance companies offer the event liability and host liquor liability which might be sufficient for some people. The Stand Alone Liability is also suitable for couples who are on a budget.

How much does wedding insurance cost?

The insurance premium you will need to pay will be determined by the budget and size of your wedding. Depending on the number of guests and items under coverage, a Stand Alone Liability can cost anything from $165 to $600.

Your premiums in case of complete wedding coverage will increase with your budget. You can expect the premium to range between $300 and $2,200.

When can i buy wedding insurance?

You can purchase the insurance 1 year ahead of your wedding. Some companies even sell their insurance 30 to 3 days prior to the event.

It’s better not to put it till the last moment if you decide to insure your wedding. Talk to your broker, compare plans and pick the one which you need.

 

 

Long-term care insurance may soon be pulled out of Canada

Old age is irreversible along with the diseases and ailments that are associated with it. Advance in science and medicine has given a long life to the population but keeping oneself fit is a different story.

Many old people come to a point that they are unable to take care of themselves. They have to hire somebody to look after them and that can also be for longer periods. It may come as a respite that people can sign up for long-term care insurance which takes care of some of the financial burden. But that too may be lost out very soon!

It appears that long-term insurance is not that popular in Canada and the people don’t have a clear idea of the benefits. Still those who want to apply for it may not find any provider in the recent future.

Manulife Financial, one of the leading insurance companies have announced that they are going to discontinue the long-term care insurance come November 2017. According to company sources, the product does not have much demand in the market. Also, the recent federal laws are responsible for the move because they don’t allow the insurance provider to access medical reports.

The new Genetic Non-Discrimination Act states that insurers cannot demand genetic tests or their results to determine the eligibility for a product or service. The information is often required by the insurance providers to calculate the risks and accordingly, the premium amount. Not having such information will only make long-term care insurance more expensive than they already are. The premium amount increases with age and complexities and many people wait till old age to apply for it. This makes the cost excessively high and as a consequence many people turn away from it.

People also don’t realize the importance of long-term care insurance as the matter can arise years and decades later. Generally life insurance sells the most while disability and critical illness coverage are also common.

Long-term care automatically initiates when a person is unable to perform daily activities like bathing, eating, dressing, toileting and so on by themselves. The insuring company hands over tax free benefits which is spent as the patient pleases. Generally long-term care costs can range from $1,000 to $5,000 per month. With the discontinuation of individual insurance policies, the only way to get long-term care insurance would be to look for bundles that offer it with critical illness or disability policies.

There is an increased need for awareness about the specific type of insurance. 350,000 Canadians paid $116 million as premium for long-term care insurance in 2015. The policies are quite recent in the history of Canada being introduced for 20 years only, according to Conference for Advanced Life Underwriting (CALU).  It would be a great misfortune if insurers stop the service as the matter is quite serious. CALU had even appealed to the government to let people borrow money from their retirement accounts to manage their long-term insurance premiums. There is a need to look after the interests of the aging population and also the profitability of the insurance companies at the same time.