If you lend your car to a person that resides in your household but who is not listed on your car insurance policy, your policy may be canceled or voided if that person should have an accident.
In the event that your auto policy is canceled or rendered void for non-disclosure, you may have to pay for car repairs out-of-pocket. More importantly, without the legal and financial resources of you car insurance company behind you, you may be held liable for any third party liability suits arising from the accident. This can leave you vulnerable to devastating financial losses.
If you child has just started driving, or if you've taken on a border or if anyone else that is living in the household is not listed on your auto insurance policy, contact your broker immediately to receive all the protection you deserve from your car insurance company.
We have started to see some rate reductions however the 15% is an average. This means that some areas may see rate increases and other decreases. It will remain to be seen if the 15% decreases are sustainable as we do not have the end of year loss results. Insurance companies are working diligently to reduce fraud which in turn will help their loss results and lower premiums. Insurance is a loss results based business and year to year rates are affected by the losses paid. This being said rates can go down 15% this year but if insurance companies lose money you can expect the rates to start going up again and vice versa. Auto insurance rates are regulated by FSCO (www.fsco.gov.on.ca) so any changes whether increases or reductions in premiums must be approved by them.