The Truth about Auto Insurance

Auto insurance. You know you have to have it, but how well do you understand it? Many of our clients have questions about insurance for their vehicles. We want to share them with you so you have the truth about auto insurance.

Caldwell Roach Insurance makes purchasing auto insurance easy and stress-free. After more than 50 years in business, we know that each and every insurance situation is unique. Our knowledgeable and experienced staff across Nova Scotia shop Canada’s top insurers to find the best coverage for you. Let our team of dedicated insurance brokers work with you to find the best coverage solution for your situation.

Is Automobile Insurance Optional?

Automobile insurance is mandatory for every vehicle in Nova Scotia that operates on public roads or highways. Required coverage includes third party liability, accident benefits, and coverage against accidents involving uninsured or unidentified motorists. 

If I have an at-fault accident, what will happen to my insurance rates?

Insurance premiums typically increase following an at-fault accident. Insurers consider your driving history for a 6 year period, so you can expect higher insurance premiums for 6 years following your accident. Many insurers offer an “accident forgiveness” product that can be purchased by qualifying drivers. Talk to your broker.

Whose insurance coverage pays the claim if I lend my vehicle to a friend and they have an at-fault accident?

Insurance is purchased for vehicles, not for drivers. So if you lend your vehicle to a friend, it is your insurance company who would be responsible for paying a claim. As a policy holder, it’s your responsibility to advise your insurance company if anyone else within your household holds a driver’s license or has regular access to your vehicle.

I store my car and my ATV in my garage. If my garage catches fire and I lose my vehicles, does my house insurance provide coverage?

It does not. Any homeowners policy is going to contain an exclusion for automobiles or larger motorized vehicles. To properly protect an automobile or vehicle from this type of loss you should purchase Comprehensive Coverage or Specified Perils coverage, even if the vehicle is in storage or not currently being driven.

Will my insurance rates go down when I turn 25?

At one time this was true, however more recently the Automobile Insurance Reform Act has mandated that insurance companies no longer use age as a determining factor when calculating insurance premiums. Today, insurance companies premiums are based on a driver's experience, specifically the number of years they have been licensed. 

Does it really cost more to insure a red car?

This is one of the oldest myths in our business. While the colour of your car does not impact the price of your auto insurance, the year, make and model does. In addition, the use of the vehicle, your driving experience and your claims and motor vehicle related conviction history can also impact the cost of your insurance.

If I insure my car as an antique, are there limitations as to how it can be used?

Speciality insurance does not limit your usage and allows clients to drive their cars on roads and highways, usually with a usage cap of 5,000 km a year. The insurer will also want to know that your antique isn’t being used daily for commuting to and from work or running errands. 

Let us provide you with the coverage you need for all your automobile insurance needs.

Call today. 1-888-511-0777.