auto insurance!?

[d5486]

I live in ON and haven't had insurance since January 2006. This is when I sold my car.

Now, I need a car and

- "I don't have insurance" (duh!)
- "I haven't had insurance in the past 6 years"

I tried kanetix.ca and belairdirect. Looks like insurance companies think I'm risky because I haven't had insurance for 6 years!!??

I had no accidents, or insurance claims when I had insurance. I've been renting cars all through out the past 6 years and had no problems whatsoever.

PLEASE tell me there is a way to get around this nonsense?

Anyway, there is no way I can afford to pay $250 a month for insurance.
I'm 31!

[rdtx2002]

add yourself to parents insurance?

[patpond]

Call a broker and explain. That said, .. what are you trying to insure, how many drivers etc etc.

[d5486]

add yourself to parents insurance?

Thanks for replying, but they live in the US.
(not even worried about the fact that I'm not a teen anymore. I'd do it if I could)

any other ideas? Very frustrating...

[rdtx2002]

Thanks for replying, but they live in the US.
(not even worried about the fact that I'm not a teen anymore. I'd do it if I could)

any other ideas? Very frustrating...

I'd call a broker.. in fact.. there are a few on RFD.. one is COSMIC5

[d5486]

Call a broker and explain. That said, .. what are you trying to insure, how many drivers etc etc.


one driver, I'm only looking to get the absolute minimum. 3rd party liability insurance and nothing more.
just whatever is required to be able to drive, legally.

i will start calling brokers tomorrow but i thought i'd ask here to have an idea first...

[EPcjay]

Your SOL.

Your going to be stuck with high rates for the first year, if you come out clean from that first year, they will reduce it by 20% every year until the rates are the norm.

[VifferFun]

Your SOL.

Your going to be stuck with high rates for the first year, if you come out clean from that first year, they will reduce it by 20% every year until the rates are the norm.

No. For a person starting out with no experience, rates will reduce every year, but the "20% a year" assumption is flat-out wrong. The amount of the premium reduction with each year of experience will vary considerably from one company to another, and is dependent on many variables.

An insurance regulation was amended on 1996-11-01 making it so that the insurer can't penalize you for a lapse in insurance coverage (unless it was due to something stupid that you did, such as not paying premium, being suspended, etc.). Read this short bulletin posted by FSCO for the details (and pay particular attention to the section entitled "Information for Rating"):

http://www.fsco.gov.on.ca/en/auto/autobulletins/archives/Pages/a-06_97.aspx


The IBC also posted a FAQ that helps clarify the issue (see page 12):

http://f1.cdpwebsolutions.com/faq.pdf

Good luck!

[d5486]

No. For a person starting out with no experience, rates will reduce every year, but the "20% a year" assumption is flat-out wrong. The amount of the premium reduction with each year of experience will vary considerably from one company to another, and is dependent on many variables.

An insurance regulation was amended on 1996-11-01 making it so that the insurer can't penalize you for a lapse in insurance coverage (unless it was due to something stupid that you did, such as not paying premium, being suspended, etc.). Read this short bulletin posted by FSCO for the details (and pay particular attention to the section entitled "Information for Rating"):

http://www.fsco.gov.on.ca/en/auto/autobulletins/archives/Pages/a-06_97.aspx


The IBC also posted a FAQ that helps clarify the issue (see page 12):

http://f1.cdpwebsolutions.com/faq.pdf

Good luck!

thanks a lot this gives me some hope... maybe the website is not up to date..

penalizing someone for this doesnt make sense at all.. i will call some brokers and see what they say

thank you

[Marzipan]

thanks a lot this gives me some hope... maybe the website is not up to date..

penalizing someone for this doesnt make sense at all.. i will call some brokers and see what they say

thank you

This reminds me how you can lose your family doctor if you stay healthy and don't go to see her/him for a number of years. In the medical case they don't bother enquiring before removing your file. .... and try getting another family doctor in some communities.

[VifferFun]

thanks a lot this gives me some hope... maybe the website is not up to date..

penalizing someone for this doesnt make sense at all.. i will call some brokers and see what they say

thank you

A bit of a penalty actually does make sense, but the insurance company is not allow to impose one. If you have two otherwise identical people who each have six years of driving experience, but one hasn't been in a car for 10 years, the person with the more recent experience is less likely to cause an accident (since their skills aren't "rusty").

Your application process will probably be a little more difficult than the average Joe, but if you have your company and policy number from six years ago, you should be able to prove that you have prior experience that can be considered in rating. The FSCO document says that your Policy Number and Company is all that you should need, but if you could obtain a letter of experience from your prior insurer (as described in the IBC document) then it will probably make the application process with a new company faster and easier.

When you talk to a couple brokers, please report back on how things go.

[d5486]

A bit of a penalty actually does make sense, but the insurance company is not allow to impose one. If you have two otherwise identical people who each have six years of driving experience, but one hasn't been in a car for 10 years, the person with the more recent experience is less likely to cause an accident (since their skills aren't "rusty").

Your application process will probably be a little more difficult than the average Joe, but if you have your company and policy number from six years ago, you should be able to prove that you have prior experience that can be considered in rating. The FSCO document says that your Policy Number and Company is all that you should need, but if you could obtain a letter of experience from your prior insurer (as described in the IBC document) then it will probably make the application process with a new company faster and easier.

When you talk to a couple brokers, please report back on how things go.


what you say makes sense.. however i've been in cars... i just havent owned one....
thanks for your help everyone.. i'll call a few companies and see what i can find..

what sucks is that i wont be able get a car if i cant get a normal insurance rate..

[barricuda]

Sorry to piggyback on this thread - but I had a question regarding auto insurance as well. I have been in Canada for 4 years but never owned a car. I have had my G license for all 4 years though. I have been a member of ZipCar that provides a 'letter of insurance' that supposedly supports insurance history for me as a driver. I am thinking of getting a car in a few months - has anyone tried ZipCar or AutoShare letters when applying for their own auto insurance? Or am I out of luck and will start out as newbie (with a high premium) in terms of insurance history

[VifferFun]

what you say makes sense.. however i've been in cars... i just havent owned one....
thanks for your help everyone.. i'll call a few companies and see what i can find..

what sucks is that i wont be able get a car if i cant get a normal insurance rate..

I know you said that you rented cars, but that's not the same as owning and regularly using one. The FSCO article actually mentions that you might be able to get credit for rental though (which surprised me to be honest, and I wouldn't get my hopes up).

When you were last insured, were you at least named on the policy (as a Principal or Occasional operator)? If you weren't, then I'm afraid that, in the eyes of an insurer, you have no experience.

[VifferFun]

Sorry to piggyback on this thread - but I had a question regarding auto insurance as well. I have been in Canada for 4 years but never owned a car. I have had my G license for all 4 years though. I have been a member of ZipCar that provides a 'letter of insurance' that supposedly supports insurance history for me as a driver. I am thinking of getting a car in a few months - has anyone tried ZipCar or AutoShare letters when applying for their own auto insurance? Or am I out of luck and will start out as newbie (with a high premium) in terms of insurance history

If you read the IBC link I posted above, it sounds like you might be able to get credit for rentals (such as an extended rental like you have). When you obtain quotes, provide the letter of experience and see if they will use it as proof of your experience.

[d5486]

I know you said that you rented cars, but that's not the same as owning and regularly using one. The FSCO article actually mentions that you might be able to get credit for rental though (which surprised me to be honest, and I wouldn't get my hopes up).

When you were last insured, were you at least named on the policy (as a Principal or Occasional operator)? If you weren't, then I'm afraid that, in the eyes of an insurer, you have no experience.

my name was the only name on that policy... that was about 6 years ago... we'll see....

these rules dont make sense to me at all seeing how i'd pay a lot less if my parents lived here so i could just add my name... i'm the same person, and having parents here or in the US does not change a thing when it comes to `risk`.

thanks again for your help.. i'll figure it out this week.

[VifferFun]

my names was the only name on that policy... that was about 6 years ago... we'll see....

these rules dont make sense to me at all seeing how i'd pay a lot less if my parents lived here so i could just add my name... i'm the same person, and having parents here or in the US does not change a thing when it comes to `risk`.

thanks again for your help.. i'll figure it out this week.

Even if you lived with your parents, you can't just insure YOUR vehicle under their name without committing fraud. If you use the vehicle the majority of the time, then you must be listed as the principal operator (and be charged an appropriate premium). People insuring their vehicle with their parent as the Principal Operator are committing fraud (misrepresentation of risk). With that being said, if you did live with your parents you could take advantage of discounts (such as having more than one vehicle or a home with the same insurer).

[nsx]

:arrow:

Moved from "Personal Finance" to "Motor Vehicles & Accessories."

[COSMIC5]

one of my insurers will accept zip car as prior insurance


Sorry to piggyback on this thread - but I had a question regarding auto insurance as well. I have been in Canada for 4 years but never owned a car. I have had my G license for all 4 years though. I have been a member of ZipCar that provides a 'letter of insurance' that supposedly supports insurance history for me as a driver. I am thinking of getting a car in a few months - has anyone tried ZipCar or AutoShare letters when applying for their own auto insurance? Or am I out of luck and will start out as newbie (with a high premium) in terms of insurance history

[Crinkle_cut]

With regards to Zipcar insurance, refer to the following discussion and Post #7

http://forums.redflagdeals.com/zipcar-counts-towards-insurance-913739/


"Yes, based on personal experience, I can say that CAA, The Personal and Cooperators all will accept Zipcar certificates of insurance. And those were the first three I called so it's likely many more will as well.

Sometimes the rep is confused when I explain it to them, however everything was good once I relayed the Liberty Mutual policy number over. "

[barricuda]

great, good to know - thanks for all the information folks!!

[helenhelen]

piggybacking as well. just wanted to know what people think of my rate. i had called one or two and checked some online quotes (the online ones were super high!) and got the best deal from TD meloche monnex, but wanted to see if people thought it was a decent rate. this is based on 19 years of driving, with 1 not at fault accident at age 19 (which i assume doesn't count anymore?) and 1 at fault accident last fall that i made the mistake of telling them about when i got the quote (i didn't know that they didn't know.. i hadn't gone through insurance because damage was so minor i didn't bother with any repairs). no traffic convictions on my record so far.

i am paying $1774.00 annually ($150.08 monthly). mostly minimum coverage. this is the stuff on my certificate: $500 deductible regardless of who is at fault. will cover repairs if i am at fault or not (minus deductible). no comprehensive coverage. 1 million liability. standard accident benefits (no special options). uninsured automobile coverage.

also, i was given a quote today of just over $19 a month for home insurance and they said if i bought it through them as well, i would get 7 to 10% off my auto insurance.. so basically, it would be about $160 per month total for both auto and home insurance.

[qaz393]

250 is pretty cheap. if i was to get a car by myself, it would be around 4k per year.