Merry Christmas and a Happy New Year

I would like to take this opportunity to wish everyone a Merry Christmas and a Happy New Year. I do hope that everyone has a safe holiday season filled with Laughter and Joy. Please during this time please take the time to remember those less fortunate.

Until next time!

Sean McNamara

Insurance Rates and the Province of Ontario

The Provincial Government is again looking into Automobile Insurance in Ontario, and the rating differences between different postal code.

Please check out the attached link to the latest news story.

If you have issues with the finding, contact your locall MPP and tell them your concerns. The only way change can happen is if more people are voicing their concerns to Parliament.

Sean McNamara

Auto Insurance Cancellation and Non-Renewal

Coping With A Cancelled Auto Insurance Policy

If your car insurance company cancels your policy, you'll find it difficult to secure coverage elsewhere. A lot of drivers underestimate the long-term effects of cancellation. They also misunderstand the circumstances that can lead to it. When it occurs, these people are forced to scramble in order to find another insurer willing to extend coverage.

With this in mind, we'll take a look at the most common reasons car insurance companies cancel their policyholders' contracts. A few may surprise you. We'll also share an important, yet often neglected, tip for making sure your policy remains in good standing.

Reasons Auto Insurers Cancel Policies

Fortunately, insurers are prohibited from arbitrarily cancelling their customers' policies. This provides you with reasonable assurance that you won't be randomly dismissed. That said, insurance companies can cancel your policy for several reasons - most are entirely avoidable.
First, you'll run the risk of cancellation if you falsify any of the information you provide your insurer at the time you submit your application. This information might include your driving record and the people you allow to use your vehicle.
Second, your policy may be cancelled if the insurer uncovers a previously unknown detail that changes their risk assessment during their vetting period. If this occurs, it is usually during the first two months of the contract.
Third, cancellation can happen if your license is revoked or suspended, thereby indicating you have lost your driving privileges.
There's a fourth reason that catches many policyholders by surprise: late payment of premiums...

Pay Your Premiums On Time

If you're on a limited budget, you might be tempted to push your auto insurance bill to the back burner. Be careful. Doing so could result in your policy being cancelled. A lot of motorists are surprised to learn their insurers have dismissed them because of late payments. It happens more often than most people realize.
In the event your policy is cancelled for nonpayment, you may be able to have it reinstated. But you'll likely be required to pay the entire premium upfront rather than make monthly payments. Moreover, your premiums will rise. To prevent these things from happening, make sure you pay your premiums in a timely manner.

How A Cancelled Policy Affects Your Insurance Options

The biggest challenge a cancellation poses is that it makes it difficult to purchase new coverage. Most car insurance companies consider a cancellation as a clear sign of a high-risk driver. Even if they are willing to extend coverage to you, your policy will almost always have significantly higher rates attached.
Another problem is that your credit history might suffer a negative mark if your policy is cancelled due to late payment. Insurers consider your premiums in the same manner as the payments for a credit card bill. Not only will they cancel your policy if you fail to pay your premiums, but they might also report the nonpayment to the credit bureaus.

Is Non-Renewal The Same As Cancellation?

Policyholders are occasionally told by their car insurance companies that their policies will not be renewed upon expiration. This is different than cancellation. The consequences associated with non-renewal are less severe.

Non-renewal can happen for many reasons, some of which lie outside your influence. For example, your insurer may stop offering a particular type of coverage. Your policy might also be allowed to expire without renewal if you have a long history of filing claims. Or, you may have received too many demerit points in too short a period. These reasons and others might discourage your auto insurance provider from continuing to extend coverage to you.

Being a responsible driver is one part of keeping your car insurance policy in good standing. But there are many other facets involved. If your insurer chooses to cancel your policy or decides against renewing it, look for alternative coverage online. Compare multiple auto insurance companies side by side to find a package that fits your needs and your budget.

Getting Ready to Purchase Auto Insurance

Consumers who wish to purchase insurance frequently need to obtain a policy without delay. One time when this is true, for example, is when buying a new car. Renewing a policy can be another time when it is important to obtain insurance starting as of a specified date; drivers will want to avoid ending up with a lapse in coverage.

Thankfully, purchasing new insurance or renewing an existing policy can be accomplished quickly and with a minimum of fuss. The trick is to know what to expect in advance, because this will allow you to come prepared to assist your insurance broker or insurance agent to finalize the process in a timely manner.

Essential Documents For Securing Auto Insurance

Among the documents you will need are ones that relate to the ownership of your vehicles. The following documents are frequently needed:

• proof of ownership for each vehicle to be insured
• a copy of the bill of sale for each vehicle, or alternatively, the relevant lease agreement if the vehicle is fairly new
• the agent may also need details about the lienholder or leaseholder for each vehicle. Any documentation you can provide about these individuals or companies may be of use.

Obtaining coverage will also require documents related to the drivers in your household. Important items in this category include:

• the full name and driver's licence number of each driver living in your home
• driver's training certificates
• full copies of each driver's record may in some circumstances be requested.

Unless you are pursuing a straightforward renewal, the agent will also need details about your current insurance company and policy, including such things as:

• the company name, address, and contact information
• your insurance policy number
• your dates of coverage including end dates for policies currently in effect.
• If you have made any claims against automobile insurance within the last ten years, you should arrive prepared to disclose details about them. Bring along any documentation relevant to these claims.
• If you can demonstrate that you were not at-fault for the accident or other incident that led to the claims, be sure to have this evidence at hand so that you can provide it to your insurance agent or broker.

Lastly, in order to avoid any delays, you should be prepared to finalize the purchase. You will want to have a means of payment with you in order to secure a policy. Some insurance brokers and agents are no longer accepting cash as a method of payment. Credit card and cheques are always welcome, although certified cheques may sometimes be required.
Remember to have these documents ready. That way, you'll probably be able to settle matters that same day and get the auto insurance coverage you need.

If you havea any further questions or comments about this post or any other post I wrote, please do not hesitate to contact me.

Sean McNamara

Staged Accidents - What to Watch Out For

Insurance fraud involving staged accidents is a growing problem in Canada. These schemes are dangerous for a number of reasons. They can go wrong and cause actual injuries to the innocent drivers being targeted, and even when the only "injuries" are false ones claimed for the purpose of collecting damages, they do economic harm by driving up the cost of insurance for all drivers.

Fortunately, there are some things that drivers can do to help protect themselves from being targeted for this type of insurance fraud.

Risk Factors

Drivers can exercise additional vigilance and caution to avoid being singled out by criminals who stage accidents. In particular, older drivers and women drivers (especially when alone in the car) should pay special attention as these two groups, are more likely to be targeted.

Staged accidents are relatively infrequent in rural areas. Most incidents occur in cities, and a disproportionate number happen in wealthier urban areas because drivers there are likely to have additional insurance coverage.

Ontario has recently enacted legislation to help make sure that there is less financial incentive for insurance fraud, but the problem remains.

Scenarios to Watch For

Staged accidents fall into several major categories. One common scenario is the "panic stop." In this scheme, a car in front of the target's vehicle suddenly slams on the brakes, causing a rear-end collision. The panic stop scenario often involves several passengers in the criminal's car, each of whom will claim whiplash or other injuries.

Another trick often used is to gesture to the targeted driver that is it all right to merge or change lanes. When the target does so, the criminal will move his car into a position that causes a collision. The criminal will typically deny having given permission for the target to merge or change lanes.

A more complex scenario involves teamwork by drivers of two cars. Known as the "swoop and squat", this scheme is a variation of the panic stop. A criminal driver will move his car directly in front of the target's car. The second vehicle involved will suddenly merge in front of this car without warning, causing the first vehicle to stop, which in turn causes the target's car to hit the back of it. The second vehicle (the one that merged) then speeds away, and since the person driving it remains unidentified, the target -- or his insurance company -- will be responsible for damages and personal injuries caused by the accident.

Busy intersections, particularly those with double left turn lanes, are places where one driver may intentionally sideswipe another in order to collect on insurance.

What to Do if You are Targeted

Panic and confusion are common reactions after an accident, but clear thinking (and preparedness) in the wake of one can prove helpful in the long run. Keep a pad of paper in your car, along with a writing utensil so that you can write down pertinent information including:

• Licence plate number of all cars involved
• Names and addresses of drivers, passengers and witnesses
• Make and model of all vehicles involved
• Insurance policy information
• Names and badge numbers of law enforcement personnel

Your Automobile Insurance - Optional Accident Benefits

It has now been 1 full year since the Government of Ontario changed your automobile insurance. I do hope that all of your insurance providers have discussed the changes with you and provided you with the new options when your insurance policy renewed. If you have not had a discussion with your insurance provider about the changed optional Accident Benefits coverage on your policy - I suggest you call them right away. You may be missing some much needed coverage based on your own unique needs.

Below is an article from Canadian Underwriter.ca with respect to the coverage being purchased by other consumers in the province of Ontario. Where do you fall? Which coverage if any was right for you?

Ontario auto insurance policyholders were about four times more likely to purchase the increased death and funeral benefit than any of the other optional benefits offered under the province's reformed auto insurance scheme.
Ontario's insurance regulator, the Financial Services Commission of Ontario (FSCO), asked the largest private passenger auto insurance insurers in Ontario to complete a survey in January 2011 regarding take-up of optional benefits.
The 24 insurance companies surveyed represented 78% of the Ontario market, based on written premium.
The survey found Ontario policyholders were most likely to purchase the following five optional benefits:
• increased death and funeral (4.76%);
• increased medical and rehabilitation to $100,000 (1.31%);
• increased attendant care to $72,000 (1.22%);
• increased medical and rehabilitation to $1.1 million and increased attendant care to $1.07 million (1.04%); and
• caregiver, housekeeping and home maintenance (0.64%).
Other optional benefits purchased included indexation (0.29%), increased income replacement to $600 (0.26%), dependant care benefit (0.25%), additional coverage to offset tort deductibles (0.19%), increased income replacement to $1,000 (0.17%) and increased income replacement to $800 (0.13%).
Optional benefits were a key component of the province's auto reforms, which were implemented on Sept. 1, 2010. The reforms essentially reduced consumers' mandatory medical-rehabilitation coverage from $100,000 to $50,000 (with an option to buy back up to $100,000) and converted some mandatory benefits into optional benefits.
FSCO approached the companies in order to understand consumers' purchasing habits regarding optional coverages. The survey covered policies written between Sept. 1, 2010 and Dec. 31, 2010.
The results of the survey were published in the Aug. 30, 2011 edition of FSCO's Auto Insurance e-Newsletter, posted online.

Potential Terrorist Threats

I am sure you have all heard about the potential Terrorist Threats that have been announced in the U.S. As Sept. 11, comes upon us it is a time of remembering what was lost over a decade ago. Not only were many lives lost, but that impact this had on the United States, rippled through all countries with close relations to the U.S.

In Canada we saw our borders closed up, trading with the US took a sharp decline and in turn the markets took a massive hit.

Some may ask why I am writing about this today. Well with the potential for further disaster to be upon us, this can cause further damage to our all ready week economy, which will again affect the Markets. All the insurance companies invest in the Stock markets to be able to make profits, or in some cases break even.

If their is another shift in the markets this could again cause rate increases in your personal and business insurance to make up for the potential losses the insurance companies face with losses in the markets. Now before you jumped down the throats of the insurance companies - remember that they are heavily regulated by government. In Ontario the insurance companies are regulated in their actions and day to day operations by the Financial Services Commission of Ontario.

So please remember if there is a devastating loss and it affects the stock markets it will eventually hurt your insurance premiums!

Have a safe weekend, and lets hope that events in New York are not hampered by any terrorist activities.

Text and Driving - Employee Issues

With more states and provinces enacting cellphone and texting bans for drivers, companies should recognize the costs they face if their own employees continue to talk or text while driving on the job.

Companies may be liable, even negligent, if they don’t have proper workplace policies on cellphone/texting and driving, according to risk officers at Zurich North America. Many aren’t aware that they can be liable for accidents or injuries that stem from distracted employees at the wheel; especially if a crash occurs after-hours.

Part of the problem: the lack of a clear message to employees on what they should or shouldn’t be doing behind the wheel, says Jeff Chilcott, senior risk engineering consultant at Zurich NA. Companies can’t defend claims against them if they don’t have policies or their employees aren’t sure how they should act, he points out.

“If a driver says, ‘I have this phone, and I need to call in,’ [while on the road], you have to watch what message you’re sending out,” he told attendees at a May 11 webinar on distracted driving. And the risk applies to all companies, not just those in the transportation sector. “Many people see driving as down time, and use it to take conference calls. That’s the wrong message.”

VICARIOUS LIABILITY:

At present, 80% of all auto claims stem from distracted driving, the panelists note, adding that the average on-highway crash can cost an organization $100,000 (US), and that the annual cost of cellphone related crashes is estimated at $43 billion (US).

And in the U.S., several incidents involving talking/driving employees have cost employers dearly: one major employer is facing a $30 million dollar wrongful death suit, and a large brokerage paid $500,000 to settle a case even when their employee struck and killed a motorcyclist while driving his own car, and talking on his own cellphone. The reason? He was on a company-related call.

WHAT GOES WRONG:

Drivers who talk or text behind the wheel lose track of the changing environment, says Chilcott. Companies should define distracted driving as “any activity that takes your eyes off the road, and your hands off the wheel,” he says.

Studies from Virginia Tech show that driving while texting increases crash risks by 23%, and NASA studies have found that multitasking causes a “blip” in your thinking process. Even a one or two second delayed reaction can cost drivers, Chilcott points out. “If a truck or a car is going 60 mph, it would travel 160 feet before you realized that you missed a stop sign, for example,” he says. “We haven’t seen one study yet that says using these devices while driving is a great thing.”

BEST PRACTICES:

Organizations should establish formal cellphone and electronic device policies, Chilcott advises. The best ones ban all cellphones, electronic and entertainment devices–and do it gradually, he adds.
In one phase, a company can ban texting, in another, no cellphones, and in yet another no GPS use unless pulled over to the side of the road, the panellists point out.
“You want the employees to know what’s expected and you want to enforce it,” Chilcott notes, adding that dispatch departments and clients should also be aware of the policies. “Build culture change–this isn’t going to happen overnight.”

- Article from “Top Canadian Insurance Broker”

**Contact me if you are interested in tips and forms to make your employees vehicles a no phone zone!**

Sean McNamara

Long Weekend Travelling

Upon us is the Labor Day long weekend and the roads are beginning to get busy.

I am looking forward to a nice long weekend of visiting Family out of town, but the drive will certainly be an interesting one. There will be lots of impatient drivers out there along with driver’s who have all the time in the world. This combination can lead to disaster on our highways.

We all know that it is going to be busy, so to make it a safe weekend for all concerned, please use extra caution when you are behind the wheel. Some people will drive the posted speed limit, and there is no need to get aggravated when you are behind them. Turn up the music and enjoy the drive.

If you do find yourself in an accident this weekend, please contact your insurance provider right away to have yourself taken care of. Your Insurance Brokers office will be closed, but they will have numbers for you to call and direction on their voicemail system. Remember there will be a lot of accidents over the weekend and response times from your insurance company will be a little slower than normal. Rest assured they will take care of you as quickly as possible.

If you do experience undue delay with your insurance claim be sure to contact your Insurance Broker as they are your advocate and can help you in dealing with your claim, if your Insurance Company fails you. Remember your best insurance is with an Insurance Broker!

Did you lock all your doors before you left? Have you advised your neighbors that you will be away? Do they have a contact number for you if there is anything suspicious on your property? For most people your home is your biggest asset, and all your contents are still inside. Advising your neighbors that you will be away will provide you with an extra set of eyes on your property while you are away.

Please have yourself a safe long weekend! Take your time on the roads, and be patient with the other drivers around you.

I would like to hear your comments on my posts. Please take a few minutes to share your thoughts!

Your Insurance Broker Sean

Why Do You Buy Insurance

So why do people in general purchase insurance?

I hear it so often that the general attitude towards insurance is that it is purchased because you are told you must have it! Well it may be true that you are required to purchase compulsory Automobile Insurance - The Province or State we reside in, says we can not drive without it. You are also required to purchase Home Insurance or Tenant Insurance as the bank or landlord require it!
This is all true, but let's have a different look at insurance! I will avoid Automobile Insurance because it is heavily regulated by the government.
So why buy home insurance or tenants insurance? Most people feel it is to protect their home and personal belongings in the event of a loss. So that is definitely a monetary reason. What about if you get sued for your negligence?

Example: You are in your back yard mowing your lawn and a rock in your grass is picked up by the lawn mower and flies out severely injuring someone. The injured party is going to sue you because you were operating the lawn mower and the rock in your grass should have been removed before using the lawn mower.

So in the scenario, you are now being sued. Did you know that this law suit can be covered under your personal liability policy, which forms a part of your Home or Tenants Insurance? Not only could your policy cover the judgement against you, it can also cover any legal fees involved with the court case. Decent lawyers these days can charge upwards of $300 for services, and if they are required in court, a lot more.
This is one of the many things to look at when purchasing insurance. The liability coverage on its can be priceless compared to losing your home in a fire.

I hope this can give some further insight to your next purchase of insurance.

I look forward to hearing any comments or feedback to any of my posts. Please drop a message on this site or send me an e-mail at smcnamara@petleyhare.com

Sean McNamara

What does a Traffic Ticket Really Cost?

So when you get pulled over doing 20km over the speed limit in Ontario the charge is $95.00. The $95.00 if only part of the cost to you! Do you know how this ticket will affect your insurance premiums?
As a Professional Insurance Broker, I see clients getting tickets all the time and then they get upset because their insurance premiums go up.

Let us say for example that the insurance premium you pay is $900.00 per year, and you have been Conviction(Traffic Ticket) free for 3 years. Let's assume that the company you are Insured with has a 10% Conviction Free Discount. Because you now have a Conviction on your record you lose this discount for up to 3 years. So with all things being equal you will for the next 3 years pay $1000.00 for your insurance premium.

So with this math your $95.00 ticket actually costs you $395.00.
Now we all know that insurance rates generally go up year after year, so the additional $100 per year in premium would be higher due to rates increasing.
So i do understand the concept behind people speeding, but when it all comes down to it, did that 15 minutes you might have saved by speeding, really be worth the cost of the ticket and increased insurance costs?

I would like to thank everyone for reading my posts, and I do hope that they are all informative. I would really enjoy any feedback and any possible topics you would like to hear about.

Sean McNamara

Positive Thinking!

So I have attended a few seminars lately, and at one of these seminars a fellow participant made this comment about Cold Calling, "the only day I make my cold calls is on Thursday, because I get excellent results".

Based on that comment I thought the gentleman was out of his mind! The thing is, since that seminar - 4 weeks ago, I have had some very successful Thursday's with respect to my selling efforts.
Here is now my thought; Do I have Success on thursday, because in my head I have this thought that Thursdays are good, or is it because the statement was actually true, and consumers are more apt to listen to proposals on Thursdays?

If anyone out there has some insight on that theory, I would certainly like to hear your thoughts.

Sean McNamara

The Cost of Putting through a Home Insurance Claim

Everyday we all get to hear intriguing things either from co-workers or clients. One of the things I hear often is confusion about home insurance and putting through a claim. Whether you own your home or rent, the effects can be the same.

Let's first look at the rating(pricing) for your insurance. Insurance companies come up with a rate for each individual risk and then they take that number and apply discounts that the individual and risk qualify for.
So for ease, let us look at the claims free discount. This discount can range from 0% to 25%, depending on the insurance company you deal with. so if your insurance premium is $800.00 and you have a 20% claims free discount your actual rate would be $1000.00.

So you have a claim on your home, let's say a tree falls and destroys your shed. To replace this shed will cost you $1000.00. You currently have a $500.00 deductible on your policy, so at this point your claim to the insurance company is worth $500.00. The insurance company will honor the claim if it is covered under the policy.

Here is the downfall, that your BROKER will tell you! If you put a claim through on your policy you will lose your claims free discount! If you have this discount, say for the above example, your insurance premium will increase 20% because you no longer qualify for the discount. Some companies require 3 or 5 years claims free before you can get the discount back. Now the $500 claim you will put through to the insurance company is costing you at least $100.00 or possibly more, spread over 3 years.

So before you put a claim through your insurance policy educate yourself and know the full effects that will happen.

I look forward to hearing any comments or feedback.

Thank you for reading.

Sean McNamara

The Value of Volunteering

Hello Friends!

Well I am still not 100% on the direction that I plan to take with this blog,but tonight I wanted to write about volunteering? What is the true value behind it?

Right now I am personally involved with 2 separate volunteer organizations, which I hope to gain friendships and business contacts from. This is generally why a lot of people tend to start getting involved with organizations. So i do hope to build my client base so there is definite value there!
I also think that there is value that I can bring to other people. Whether it be being a friend or a business contact for them. More value!

Then there is doing good for the community! If you get involved there is always work to be done, with different events that each organization hosts or is a part of. Hopefully the work you do will bring a smile to someone's friend, or bring friends together creating memories. This is definitely indirect value, but none the less value.

And then there is value for the organization! Does the activity create revenue? Does it increase the presence in the community? Either way there is added value.

I personally do not know anyone that would argue with the point that helping out others is satisfying. with that being said, why do people not get involved more often? It makes you feel good, and as shown above, there is added value to more than just yourself!

If you have an hour a week or month or year! get out and get involved! You never know who you will meet, or who will be happy you helped!

If you ever have any suggested topics or input, I would be more than happy to hear them from you!