30 Million Dollar Deductible - Think you are paying a lot for insurance? Check this out

Concordia Insurance Claims May Touch $1 Billion If It Sinks

By Beth Jinks - Jan 16, 2012 7:50 PM ET
The insurance costs related to the sinking of Carnival Corp. (CCL)’s Costa Concordia off the coast of Italy may reach $1 billion once environmental damage and injuries are added to the count, Moody’s Investors Service said.

The shipwreck “marks the first major insured loss of 2012 and will result in a drag on first-quarter 2012 earnings for affected firms,” Moody’s Senior Credit Officer James Eck wrote in a note published today.

While damage to the ship will cost around $500 million, other items like personal injury and liability and environmental losses may bring up the final bill, the report said. Reinsurers will likely take on most of the burden, Moody’s said.

In a separate report, Jefferies International Ltd. estimated the total cost at 650 million euros ($850 million).

The Costa Concordia, carrying 4,200 passengers and crew for a Mediterranean cruise, struck rocks and ran aground off Italy’s small Giglio Island on Jan. 13. The accident resulted in the sinking of the ship, leaving 15 dead and 24 still missing.

We thought we would post something fun this week! The game Sneaky Pete is a fun way of showing how valuable our contents are. According to NRMA insurance in Australia fewer than 17% of people have adequate insurance. Whether that number is relevant in Canada or not it still makes a good point that you should make sure you have enough insurance coverage for your home and contents. You will be amazed how fast it all adds up!

Check out our free home inventory form on our website. To get the form go to: http://www.mollerinsurance.com/faq.html and scroll to the bottom where it says "Home Inventory Form". Click and save to your desktop for future use.

Click on the below image to play the game Sneaky Pete!

Odd — but true — traffic law peculiarities

ANDREW WALLACE/TORONTO STAR

No signs or objects, for example 'Baby on board', obstructing the driver’s view of the highway 

are permitted on any window under S. 73(1)(a,b) of Ontario's Highway Traffic Act.

Eric Lai

SPECIAL TO THE STAR

In reviewing Ontario’s Highway Traffic Act, one can’t help but notice some seemingly contradictory approaches this legislation takes to certain topics. Granted, the authors of the law must have had their reasons for each of these decisions but, on its face, some aspects of the HTA do seem at odds with each other. Here are some examples we’ve come across.

Under S. 74(1)(b) HTA, the rear window must afford the driver a clear view. Yet, S. 74(2) HTA specifies that drivers haven’t committed a “no clear view to rear” offence if their vehicle has (dual) outside mirrors — which are standard equipment on virtually every motor vehicle today. That fact notwithstanding, no signs or objects are permitted on any window under S. 73(1)(a,b) HTA (e.g. “Baby on board”).

Throwing a gum wrapper, for example, out the car window could land you a “litter highway” ticket under S. 180 HTA, but animal droppings (such as from police horses) do not constitute an offence.

Having just one working tail light on your motor vehicle is acceptable under the law, but heaven help you if your licence plate light is out. Ref. S. 62(1) and S. 62(19) HTA.

Using paint to touch up a rusted or faded licence plate is a “deface plate” offence under S. 12(1)(a) HTA. Leaving it in its naturally sorry state, on the other hand, isn’t a violation.

Though not advocated, unbelted passengers over age 8 in the rear of a pickup truck are legal. It’s not a violation either under seatbelt legislation or as an “insecure load.”

Every passenger inside a motor vehicle must occupy a seatbelt-equipped seating position and have their seatbelt, or infant/child car seat if applicable, securely fastened. To comply with the law, excess passengers might opt to take pubic transit where, ironically, neither infant, child nor adult riders would need to wear a seatbelt (as most buses are not manufactured with such equipment).

Speaking of buses, here’s a scary thought. If you were to buy a full-size school bus without air brakes, repaint it any colour other than chrome yellow, cover the words “school bus” and “do not pass when signals flashing,” remove the stop arm, and take out all but nine seats, the law permits you to drive that behemoth with just a class “G” licence.

Normally, a class “B” licence — and the prerequisite training needed to obtain it — is required to drive a full-size school bus.

Insurance claims: Don’t worry, I’m covered

When does filing an insurance claim make sense?

By Julie Cazzin | From MoneySense Magazine, October 2008

Tags: Insurance brokers, Insurance claims, Insurance premiums

This article was first published in the October 2008 issue of MoneySense.

Current issue:

Someone just backed into your car in a supermarket parking lot, then took off, leaving you with a dinged fender and a smashed taillight. Should you file an insurance claim and take the chance that your premiums will soar as a result?

Or maybe a storm toppled a tree and caused several hundred dollars worth of damage to your garage. Is that a worthwhile claim? Or will you just wind up giving the money back to the insurance company through increased premiums?

To find out, we canvassed insurance brokers across the country. Here’s what they told us:
 
• You should always make a claim on your car insurance if the damage was the result of something outside of your control. So if someone backs into your car in a parking lot and disappears, or if a stone hits your windshield and cracks it, or if hail destroys your new truck’s new paint job, get on the phone to your insurer. “Even if the damage is several thousand dollars, claims like this won’t impact your premium,” says Cory DiRosa of DiRosa Insurance in Oakville, Ont.

• If in doubt, do the math before you file to see if an auto accident claim is worth it. Most insurance agents or brokers will walk you through the decision, which will vary by province. In Ontario, a single at-fault accident will probably boost your premiums by 15% or more for six years. But two at-fault accidents in under three years can double your premiums for years to come. In B.C., two at-fault accidents will boost your premiums anywhere from 40% to 200%, depending on your driving record.

• If you’ve been using the same company to insure your home for five years or longer, some insurers will allow you one free claim before raising your premium. “So if your $2,500 golf clubs are stolen, it’s your first claim and you’re a long-time customer, make the claim,” says Vicki Van Santen, an insurance broker with Generations Insurance in Toronto. On the other hand, if you’ve been with your current insurer for only a couple of years, a single claim will probably boost your premium by 10% or more for three years.

• Don’t claim damages of less than $1,000 on your home insurance. It’s simply not worth your while. Most policies have at least a $500 deductible, so at most you stand to get a couple of hundred dollars — but you may wind up paying substantially higher premiums in years to come as a result.

• You should claim for any major house damage. So long as the damage was the result of an accident, and so long as it was your only claim in the past five years, even a $50,000 claim should not affect your renewal. But beware frequent, small claims. Insurers will usually not renew you after your third claim in five years, even if all the claims were minor. “It all boils down to frequency with home insurance claims,” says Van Santen.

• Since it doesn’t pay to make small claims on your home insurance, the smart strategy is to raise your deductible to $1,000. The higher deductible will save you up to 20% off your premium annually. “Higher deductibles mean lower premiums,” says Bob Fitzgerald, executive vice-president for Aviva Canada in Toronto. If you feel you can afford the risk, you can raise your deductible to $5,000 or more and cut 40% or more from your annual premium.

Winter Driving Tips

Winter tires - Winter tires help to increase grip in snowy or cold conditions, and I find they also preserve the alloy on your summer rims because they aren’t exposed to the road salt and chemicals.

Windshield wipers - Inspect your wipers because good wipers can make a huge difference when you have to clean your windshield every 5-10 seconds in a storm or when road salt continuously clouds your windshield.

Washer fluid - It’s a good idea to top up your washer fluid levels and carry an extra jug in the car with you, just in case you run out while driving. I know I have.

Tire pressure - Check your tire pressure when the weather turns cold, it’s recommended to keep your tires 3-5 psi higher than your regular tires. Reason being, winter tires are softer than regular tires so they grip the road better in colder temperatures. By increasing the pressure you maintain better grip and fuel economy.

Car washes - Regular car washes can help reduce the start of rust on your vehicle and increase visibility with other motorist. A wash will also help notice any damage to your car. (Example - someone hits your car with their door in a parking lot or flying chunks or ice on the highway.)

Turn headlights on - Personally I have found that turning your headlights on no matter what time of the day it is will help you see better and help other motorist see you. Many cars now have interior dash lights that are so bright you can see them at night, but then your taillights won’t be lit up and people behind you can’t see you until your brake lights come on.

Sunglasses - Sunglasses are invaluable in the winter. (especially polarized sunglasses) The glare from the sun off the snow and ice can blind you.

Pack an emergency kit - Something simple like energy bars, water in a plastic bottle so it won’t break open, a blanket, candle in a can with matches, a wind-up flashlight, a whistle, a small shovel or ice scraper.
 
Learn and practice winter driving techniques - Do this before you need them, it’s actually a lot of fun. Find a large parking lot or seldom used road and practice aggressive braking and turning. Be careful.

Plan your trip, check road and weather conditions - Get an idea of the route you’d prefer to take then check that route to make sure its open or not backed up with traffic. I use AM 680 to get traffic and weather conditions; they give new reports every 10 minutes.

Remove all snow from your vehicle before each trip - Have you ever been behind someone who didn’t clean off their car? I know I have, I’ve even been the person who didn’t. Try to clean off your car before your trip, a good plan is to start your car to take the chill out of it and clean your car off kill the time till it warms up. I know it isn’t fun but it may prevent an accident.

Give yourself extra travel time in bad weather - Let’s be realistic, it’s going to take longer to get places in the winter so we need to plan accordingly. Leave a little earlier for your destination, you’ll most likely need the extra time and you won’t feel rushed.

Avoid using cruise control on slippery roads - When you set your cruise control you’re telling your car computer to keep you at the selected speed no mater what. This feature is great to get better fuel mileage by not constantly changing speed, for going up or down hills and to even prevent speeding. The downside to this is if you have the cruise control set and you hit snow or slush on the road the car will try and compensate for the decreased speed or traction by accelerating, which can cause you to slide out of control. I’ve also had personal experience with this problem.  

Travel with a fully charged cell phone - When possible try to charge your phone, carry a car charger or charge your phone off your computer at work. Most phones now sync with PC’s, you can use your sync cable to charge your phone.