Home warranties

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  home warranty is an optional service contract that covers the cost to repair or replace an appliance or system when it breaks down over time from normal wear and tear. With a home warranty plan, you’ll enjoy peace of mind knowing that the cost of unexpected home repairs will be limited. Most often, all you’ll pay is a relatively small service fee.

• Q.
• Are home warranties worth it?
• A.
• Yes, home warranties are well worth the cost. You’ll trade costly repairs for as little as $29 per month. A home warranty is especially worthwhile in times when your budget is thin and your nerves are shot, i.e. during the holiday season or when you close on a new house. Second, don’t overlook the peace of mind you’ll feel when your major home systems and appliances are protected. And finally, the best home warranty providers give you access to a network of licensed professionals in your area. You won’t have to read plumber reviews or ask your neighbors for a referral ever again.

• Q.
• Should I get a home warranty plan?
• A.
• Yes, you should get a home warranty plan if you want to avoid paying full price for expensive home repair and replacement costs. House Method suggests home warranties to all homeowners including home buyers—especially first-time home buyers—and sellers, realtors, and rental property owners. A home warranty may not be necessary if you have a brand new house that’s still protected under a builder’s warranty or if your home is larger than 5,000 square foot.

• Q.
• How much is a one-year home warranty?
• A.
• Most home warranties cost $25–$67 per month, but we consider premiums lower than $50 to be an affordable home warranty. We found that companies that offer custom coverage or build-your-own plans are the cheapest home warranties. We’ve heard several complaints about providers raising their prices year after year. Unfortunately, this is common as the demand for home warranties increase. You can always ask if you can lock in a price at the time of signing. Sometimes home warranty companies will guarantee your rate if you pay for a three- or five-year plan. This is a large sum of money upfront, but you can usually cancel any time and receive a refund for the amount you don’t use. Ask the company about cancellation policies and fees. We’ve seen fees range from $50 to $75.

Q.

Who pays for a home warranty?

A.

Home buyers and sellers, realtors, and rental property owners can all buy a home warranty and benefit from a home protection plan. Home buyers will pay for home warranty coverage if they purchase the plan after closing. However, it’s becoming more common for the seller to pay for a one-year home warranty if they offer it as part of the home sale. Real estate agents sometimes pay for a home warranty for the seller in order to cover potential repairs that crop up while the home is listed. Realtors may also offer a home warranty to the buyers they’re representing as a kind of thank-you gift and a way to ease anxious buyers’ minds. Rental property owners can bake the cost of a home warranty into the tenant’s monthly rent.

Factors to consider before buying a warranty

Availability First, you’ll want to make sure the companies you speak with offer coverage in your state or zip code. Unfortunately, not all plans offer coverage nationwide. If you want immediate reliable coverage, be sure to check customer service hours and confirm if there is a waiting period before your coverage begins.Appliance & System AgeStart by comparing coverage options for the systems and appliances in your home that you can’t live without. It is also helpful to consider the age of the items in your home as older appliances and systems are more likely to need repair or replacement. As you consider home warranty providers, make sure they offer coverage for these most essential and older items in your home or property.

Plan Options & Add-ons If you’re only interested in protecting a few or specific appliances, look for a customizable option so you can only pay for coverage that’s worth the cost for you. Also, consider if there are extra things that you need to be covered such as a pool or spa or roof coverage. When you speak with an agent, make sure to confirm you get all of the coverage you need without paying for the things you don’t.

How to get the best home warranty deal

When you speak with a sales agent be sure to inquire about special offers and deals. Many home warranty companies offer monthly or seasonal discounts and many are willing to discount pricing if you pay upfront or commit for more than one year.

Tips to get a cheaper car insurance rate in Canada

Get quotes from as many insurance companies as you can.  

Car insurance is mandatory in Canada, but that doesn’t mean you need to stick with your current car insurance provider or the one favoured by your family and friends.

Car insurance providers will happily offer you a quote at no charge. This way, you can get a close estimate of what you can expect to pay annually.

Don’t take our word for it: even the Financial Consumer Agency of Canada recommends applying for quotes as the first step when buying car insurance.

A licensed insurance broker can retrieve multiple quotes for you.

You can also use a rates comparison site like insuranceattorney.xyz Our network includes over 30 Canadian insurance providers. We’ll show you what rates insurance companies are willing to offer you, starting with your lowest quote.

Make sure your application is accurate. 

When you apply for quotes through a broker, you want to make sure that the information you provided during the screening process is accurate.

That way, you know the rates offered to match what you’ll be charged when signing the contract.

You can expect to be asked about the following:

• Vehicle information (year purchased, make, model)
• Driver information (licensing dates, claims and convictions history)
• Discount information (interest in bundling home insurance)

Many car insurance providers and brokers offer the ability to apply online for quotes. One thing to watch out for is sites that ask too few questions.

Rethink how much insurance you really need  

We’re not suggesting you skimp on insurance coverage to save some money in the immediate future. However, you could wind up adding optional insurance coverage to your policy that might not be worth the investment. For example, collision and comprehensive coverage on an older car: you could use the money you would pay for these extras and invest it into buying a new car out of pocket.

One place where many Canadians are chronically underinsured, though, is third-party liability insurance. The mandatory minimum limit in most provinces is around $200,000, whereas insurance experts recommend increasing it to at least $1 million. After all, the cost of legal expenses, decisions, and medical care have increased since the minimum limit was set.

Offer to pay for the whole year upfront  

This might not be feasible if you’re a young and inexperienced driver (this group tends to pay some of the highest rates). But, if you’re a driver in your thirties or older with a clean driving and insurance record, paying for the whole year upfront will often save you some cash.

When you pay month-to-month, administrative fees are tacked onto your bill. You’re saving the car insurance provider money when you pay for the year at renewal time.

Apply for as many discounts as possible 

Insurance companies offer lots of discounts. Here are some of the most common ones:

• Winter tires discount: In Ontario, you can save about 5% annually on your insurance if you keep winter tires between Nov. 1 to Apr. 1. The winter tire discount is applied at renewal time.
• Dashboard camera discounts: If the time comes to make a claim on your insurance, video footage from your dashcam will provide objective evidence, making it easier for insurance adjusters to determine fault.
• Anti-theft device: Insurance companies offer discounts for drivers who make investments to make their cars harder to steal. Insurers favour the following devices:
  • Starter disablers
  • GPS trackers
  • Car alarms
  • Steering wheel locks

You might consider using a combination of devices. Faraday bags are a must-have accessory for all cars with keyless entry: these pouches will block any signal that tries to clone your key fob.

Try usage-based insurance  

This product qualifies as a discount, but it gets its own section given what a game-changer it has proven itself to be for urban drivers.

Think of it like one of those retro pay-as-you-go cell phone plans.

With usage-based insurance (UBI), you pay for a baseline number of annual kilometres, usually about 10,000 km. If you exceed that, your insurance company will charge you for every extra 1,000 km or so.

In order for the insurer to keep tabs on your mileage, you must install a monitoring device in your car.

Try telematics  

Telematics is similar to UBI. It adds a layer of data collection, though. With a telematics device installed, your insurance provider will monitor your driving patterns, like your average driving and braking speeds, not just your kilometres.

You must install a monitoring device or an app on your phone to participate. It can amount to discounts in the region of 20% at renewal time plus an initial discount for signing up.

One thing to note is that insurance companies are allowed to use your data against you in Ontario. If the device detects unsafe driving, your insurer could increase your premium.

Keep insurance costs in mind when you shop for a new car

The make and model of the car you choose will determine how much you pay for insurance.

Used cars that have already depreciated in value usually command lower auto insurance rates.

Despite being older, some used cars still attract thieves. If you want to keep insurance costs down, consider checking to see if the car you’re eyeing has made it on the Insurance Bureau of Canada’s most stolen list. Cars that make the list usually have higher than average insurance premiums.

Auto Insurance

What is Auto Insurance?

Auto insurance provides financial protection against physical damage and/or bodily injury resulting from traffic collisions and against liability that could also arise therefrom. 

Auto insurance may also offers financial protection against theft of the vehicle and damage to the vehicle, sustained from things other than traffic collisions.

Auto Insurance Coverages

There are basically six different types of coverages. Some may be required by law. Others are optional. They are:

• Bodily injury liability – for injuries the policyholder causes to someone else.
• Medical payments or Personal Injury Protection (PIP) – for treatment of injuries to the driver and passengers of the policyholder’s car.
• Property damage liability – for damage the policyholder causes to someone else’s property.
• Collision – for damage to the policyholder’s car from a collision.
• Comprehensive – for damage to the policyholder’s car not involving a collision with another car (including damage from fire, explosions, earthquakes, floods, and riots), and theft.
• Uninsured motorists coverage – for costs resulting from an accident involving a hit-and-run driver or a driver who does not have insurance.

Car insurance quote Explained!

A car insurance quote provides an estimate of what you’ll be charged for car insurance, monthly and annually. You can get a quote from a broker, an agent, or an insurance comparison site.

Regardless of the route you take, you’ll be asked intake questions before you can see your quote. Your answers provide a general picture of your insurance needs.

Every car currently in use needs to have insurance – it’s illegal to operate one without it. Because of this, your auto insurance quote will automatically include the minimum coverage required to operate a car legally.

You’ll also have a chance to state whether you think you’ll need optional forms of insurance; this will be factored into the quote you get.

Here’s what you can expect to be asked during the quoting process:

• Your age
• Your gender
• The date you received your license
• Your car’s make, model, and year
• Where you park your car overnight
• Whether your car is leased
• The number of kilometres driven to work one-way
• Whether you would like your insurance to include comprehensive and collision coverage

Auto insurance policies are standardized. However, there’s still a wide variance in how much one company charges for coverage versus another one. It’s important to compare quotes from a variety of providers. With car insurance rates going up (and the cost of living in general), it’s more important than ever to find savings where you can.

Factors that impact your car insurance quotes

Whether you’re getting car insurance for the first time or looking to renew your current policy, many factors shape your car insurance premium, from car type to driving record.

Below are some factors that insurers use to determine your insurance premium.

Your vehicle type

Insurance companies have different rates for different car makes and models. The insurance company looks at a few things when determining your rate: the chances of your car being stolen or damaged in an accident, for example. Certain vehicles have a higher risk of being stolen than others. According to the Insurance Bureau of Canada, the vehicles that attract thieves most often are Ford pickup trucks and Toyota SUVs.

Insurance companies also consider how much it might cost to repair your car if you get into an accident. Generally, rates tend to be higher for newer cars, especially sporty models, but safety and driver-assisted features may help lower your premium.

If you’re curious about how your car measures up, find out which makes and models are the cheapest to insure.

Your age

Most drivers can expect to see their car insurance rates decrease for the first time when they reach the age of 25. Up until this point, young drivers, especially young male drivers, are considered high-risk due to the increased likelihood of getting into an accident and having to file a claim. As you build a safe driving record and insurance history, both may result in a cheaper car insurance premium over time.

As you get older, car insurance typically gets cheaper again when you hit 50 years old. By this age, you have an established driving record, insurance history, and are considered to be a lower risk.

But by the time you hit your mid-50s and onwards, your car insurance might increase. Find out how you can save some money with affordable seniors’ insurance.

Your gender and marital status

Insurance companies also consider your gender. That’s because males are statistically more likely to file an insurance claim, which means men pose a higher risk of getting into a car accident.

Your marital status may also factor into the equation. Married couples tend to get lower rates than single individuals. So, if you’re a young, single male, you may pay a higher rate than your married counterparts.

According to this Globe and Mail article, there are a few reasons why married couples get lower rates, including their age and driving experience. Also, many married couples have kids and tend to drive more responsibly.

With that said, each insurer determines their own rates, and some won’t factor in your marital status.

Where you live

Where you live can have a big impact on your car insurance rate. That’s because urban areas tend to have higher claims costs. Being in an area with more people means more risks, accidents, and thefts. When those things occur, claim costs rise, and so do premiums.

Along with urban areas having higher claims costs, your postal code also affects your premium. Each postal code is associated with a neighbourhood, and some neighbourhoods are at a higher risk for theft or accidents.

Driving record

The cost of your insurance largely depends on your personal driving record. Previous accidents, how long you’ve been licensed, whether or not you’ve taken a driver training course, speeding tickets, and serious convictions such as impaired and distracted driving are all part of your record.

The more traffic convictions and collisions you have, your insurance premium will likely be higher.

The length of time traffic convictions stays on your driving record varies. For example:

• A speeding ticket stays on your record for three years.
• Demerit points stay on your licence for two years. The number of points added to your record depends on the offence. In Ontario, if you accumulate more than 15 demerit points, your licence will be suspended for 30 days.

Car accidents are a bit trickier to determine, and the primary factor is finding out who is at fault. Your insurer will use provincial Fault Determination Rules to determine who caused the accident. If you’re found at-fault – partially or fully – your premium may increase, and the collision will stay on your driving record for six years.

Insurance company

Shopping around for the best deal can be time-consuming and overwhelming, as each insurance company offers different rates based on your profile. To simplify and expedite your search for affordable car insurance, get a free quote from a broad range of insurers.

After you’ve found a few insurance rates you’re interested in, you can start comparing the policies line by line to see what is offered and what isn’t. Keep in mind that cheap doesn’t always mean the best.

To truly get the cheapest and best car insurance, you should shop around whether your policy is up for renewal or not because each company offers different rates.

Insurance coverage

Depending on what type of car you have, you may want to get different coverage. For example, you should consider a depreciation waiver on a brand-new car. If your car is severely damaged in an accident, this coverage allows drivers to receive a claim on the value of their car. Of course, there are caveats to this: the car must be brand new (not used), the waiver can last between one and three years, and your claim will be settled in one of three ways (whichever is lower):

• The amount you paid for the vehicle.
• The manufacturer’s list price for the vehicle, with similar options and equipment on the original date of purchase.
• The cost to replace the vehicle with a new one with similar options and equipment

Insurance policy deductible

The deductible is the amount of money you would pay before insurance starts to cover you in the event of an accident, theft or other damage to your vehicle. Depending on the policy, the deductible amount can vary but typically starts at a few hundred dollars and goes up.

It may sound counterintuitive to want to increase your deductible, but a higher deductible means a lower premium.

Ask about discounts

The best way to save even more is to ask your provider about discounts they offer and what you may qualify for.

Here are a few easy ways to potentially save:

• Sign up for a usage-based insurance (UBI) program. A UBI program monitors your driving behaviour and habits. A mobile app and a telematics device installed in your vehicle tracks how fast you drive, how hard you brake, and the distance you drive. Consistently demonstrating safe driving behaviours can help you save money by earning a discount on your premium.
• Get winter tires. Many insurers offer a winter tire discount of up to 5% on your premium when you install winter tires.
• Invest in driver education. Young or new drivers can also give you a discount if they’re on your insurance policy if they enrol in an accredited driver’s training school and complete the training. The money you’ll save on insurance typically offsets the cost of the training within the first year.

Review your policy annually

Reviewing your policy annually ensures you’re still getting the best rate, especially if your insurance needs change throughout the year.

After careful review, you can decide to renew the same policy, make changes to your policy, or switch insurers to get the coverage you need at an affordable price.

Whatever you decide, it’s good to review and shop around annually.

How car insurance works in Canada

Car insurance is mandatory in all provinces and territories.There are serious consequences for driving without insurance. These include having your license suspended, your car impounded, and fines. In Ontario, the fines range from $5,000 up to $50,000; in Alberta, they range from $2,875 up to $20,000.Plus, your insurance premiums will increase (the larger the fine, the more significant the increase).So why aren’t other forms of insurance, like life and home insurance, not legally required? Car accidents take a toll on society. Without mandatory insurance, victims likely wouldn’t be able to access crucial support. Having a clear system for resolving disputes also ensures the courts don’t get tied up, too.

Regulation at the federal and provincial levels

Insurance is regulated at both the federal and provincial levels.The vast majority of the property and casualty insurance industry is federally regulated. The Insurance Companies Act governs all federally incorporated or registered insurance companies in Canada.The Financial Consumer Agency of Canada (FCAC) is responsible for administering sections of the Act that deal with consumers’ rights and monitoring insurance companies’ compliance with the law.The Office of the Superintendent of Financial Institutions (OSFI) regulates the solvency and financial soundness of property and casualty insurance companies.Then, each province and territory have their own Superintendents of Insurance. These bodies regulate the products offered by insurers and their conduct in the marketplace (underwriting, rating, and marketing practices, as well as their handling of claims). The Financial Services Regulatory Authority of Ontario (FSRA) regulates the car insurance industry in Ontario. The Alberta equivalent is the Alberta Automobile Insurance Rate Board (AIRB).Private vs. public car insurance marketsCanada has a patchwork of insurance markets. The provinces get to decide what delivery system they want, which is why some have private insurance markets (where you buy insurance directly from a company of your choice), and others have public insurance funded by taxpayers.In the public system, insurance is dispensed by a Crown corporation (B.C., Saskatchewan, and Manitoba). Enrolment is automatic when you register a vehicle.Quebec’s system can be described as quasi-public. Here, the public insurer only regulates insurance for bodily injuries, while physical damage and liability are provided by private insurers.Provinces with private auto insurance systems (Ontario, Alberta, all the territories and Atlantic provinces) have laws preventing drivers with less than stellar driving and insurance records from being refused insurance coverage. This is called an all-comers rule.The all-comers rule aims to stamp out business practices that dissuade troubled drivers from getting a quote.That said, if you have poor driving and insurance histories, your insurer might bring you on as a customer — but your premium will be much higher than the average driver’s.The differences between provinces don’t stop there.

Tort vs no-fault insurance

Tort insurance was once the dominant claims resolution methodology in Canada.A tort is a legal concept for civil wrongs that inflict pain and damage to another person due to negligence.

Under a tort auto insurance system, some insurance accident benefits are included in a standard policy, but they’re limited in comparison to the benefits in no-fault systems. If you’re injured by someone else’s actions, you must sue to cover your expenses.

No fault coverage means you get comprehensive benefits regardless of who’s at fault for causing the accident. In exchange, your right to sue for pain and suffering is limited.

Ontario, Nova Scotia, New Brunswick, Quebec, P.E.I., and B.C. operate under a no-fault system.

To this day in Saskatchewan, you can decide whether you want a tort or no-fault accident benefits package.

Alberta doesn’t fit into either the no-fault or tort category, either. It is a primarily tort-based system with some facets of a no-fault one. In 2022, the province introduced direct compensation for property damage (DCPD), which means your insurance company will pay for repairs to your vehicle if you’re not at fault for a collision (no need to get lawyers involved). This type of coverage is usually only found in provinces with no-fault frameworks.

On the other hand, you can sue the at-fault party for damages in Alberta (a hallmark feature of the tort approach).

Geography and auto insurance

To get even more granular, insurance premiums are dictated by geographical boundaries.

Most insurance companies use postal codes to determine the boundaries. However, the province can get involved and set restrictions on rating territories.

Types of car insurance coverages in Canada

Since you can’t legally operate a car without insurance in Canada —driving is an inherently risky activity — auto insurance policies are tightly regulated and standardized.

However, the provinces get to determine what constitutes mandatory and optional coverage.

The maximum amount an insurer will pay to an insurance policyholder varies in each province and territory.

Broadly speaking, liability and accident coverage is mandatory in most provinces, while insurance that covers damage to the body of the car and personal effects is optional (with some exceptions).

Insurance endorsements are a kind of optional coverage. They’re policy change forms that alter standard policies in ways that optional products don’t. Endorsements can enhance or reduce your existing coverage.

See the mandatory coverage for your province here.

Mandatory insurance

• Third-party liability: This benefit covers you from claims from a third party when you have an at-fault accident. It protects you if you cause damage to someone else’s property, bodily injury or death.
• Direct compensation property damage: This covers damage to your vehicle if the other person was responsible for the accident. Your car insurance company compensates you.
• Uninsured automobile protection: Provides extra coverage if you’re in a collision with a driver that does not have third-party liability coverage.
• Accident benefits: Protects you from injury in a collision, whether you are the driver, a passenger, pedestrian or cyclist.

Optional insurance

• Collision: This coverage protects your vehicle against damage from a collision with another car. Your insurer will pay to repair or replace your vehicle if you are at fault
• Comprehensive:  Covers damage to your vehicle that wasn’t caused by a collision, like theft, hail, vandalism, and more.
• Specified perils: This coverage protects against damages caused by named perils, such as theft, attempted theft, explosions and natural disasters like fire or lightning. Only risks specified in the policy are covered.
• All-perils: This coverage is a combination of both collision and comprehensive insurance. All-perils coverage protects your vehicle from all causes of loss except those directly mentioned as exclusions in your policy. It also provides additional protection if your car is stolen or damaged by another driver.

Endorsements  

• Suspension of coverage: This allows you to suspend your insurance coverage for 30 days or more during periods when you aren’t using the car.
• Transportation replacement: Provides compensation to pay for other means of transportation if your car is unusable due to a covered risk.
• Liability for damage to non-owned automobile(s): Covers damage caused to a rented or leased car.
• Accident forgiveness: Ensures your premium will not increase after your first at-fault collision for as long as you remain with the same insurer.
• Waiver of depreciation: Ensures your insurance company won’t factor in depreciation when settling a claim; you will receive the amount you initially paid for the car.
• Family protection coverage: Ensures your costs are covered if you and your family are involved in an accident with a driver with less liability insurance than you. This endorsement will cover the remainder.
• Limited glass: For a lower premium, you can limit or exclude any coverage for glass damage that might’ve been in your policy.
• Fire and theft deductible: Adds a deductible (an amount you must pay before your insurance company chips in funds) for a theft or fire damage claim.