FAQs about Car Insurance
Get a personalized quote and save on your car insurance with Western Financial Group. Combine your car and home insurance and you save up to 10%.
Sam Karman is the manager of Digital Insurance Solutions at Western, based in Cochrane, Alberta.
Sam is our expert in car insurance and she answers key questions about coverage and how Western can help you save on your premium.
What are the advantages of using Western – a top insurance broker – for car insurance?
At Western Financial Group, we evaluate your individual needs to recommend the car insurance policies most suited to your requirements. One of the primary advantages of working with our brokerage is our collaboration with a variety of insurance providers, which grants you access to a broader range of products that might not be available through a single insurance company. We eliminate the need for shopping around for car insurance quotes.
What are the best ways for a car owner to save on insurance?
We are well-positioned to help you as local residents with a deep understanding of regional risks and regulations, offering insights that often surpass those of multinational providers. We will get you personalized car quotes that suit your needs.
- Combine auto insurance with home, renters, or other policies for a multi-policy discount.
- Choosing a higher deductible can lower your premium.
- For older or lower-value vehicles, consider liability-only coverage instead of full coverage.
- Maintain a clean driving record (no accidents or convictions)
- Low mileage
- Student
- Telematic programs
- Multi-vehicle
- If you have the same carrier for property and auto insurance you will only have to pay one deductible if the same peril impacts both lines of business. For example, if a hailstorm impacted both your home and car insurance, if you were with the same carrier for both you would only have to pay one deductible.
Here are some common surcharges for car insurance:
- High mileage
- Long commute
- Convictions
- At-fault accidents
- Gap of insurance greater than 2 years
What happens to your car insurance when it is cancelled for non-payment?
If there have been cancellations due to non-payment within the past three years, it may affect carrier availability, coverage options, and premiums. If there is any outstanding balance owed to a previous carrier, our current auto insurance options are limited to our facility association.
Timely payment of insurance premiums is essential because missed payments could hinder your ability to obtain the necessary coverage to meet vehicle loan, leasing, or mortgage requirements.
We can obtain insurance history reports to identify any cancellations due to non-payment; however, it is advisable to disclose all relevant insurance information up front to your broker.
How do speeding tickets and distracted driving tickets affect your car insurance premiums?
The impact depends on the nature of the conviction. For example, a single minor speeding ticket may result in a small surcharge, but you can still obtain full coverage. However, having two or more speeding tickets within a three-year period may make it challenging to secure the necessary coverage to meet vehicle loan or leasing requirements.
A single distracted driving violation within three years can disqualify you from acquiring collision, comprehensive, or specified perils coverage, which pertains to the physical damage coverage for your vehicle.
If you have bought a hail sale vehicle, does that impact your car insurance?
Hail sale vehicles offer a cost-effective option. For insurance purposes, you can still obtain comprehensive or specified perils coverage. It is necessary to add hail deletion coverage, which offers the benefits of comprehensive coverage while excluding hail damage, given that the vehicle already has pre-existing damage.
Once the vehicle is repaired, hail deletion can be removed, restoring full comprehensive coverage. Please note that hail sale vehicles do not qualify for guaranteed replacement cost or waiver of depreciation endorsements, even if the pre-existing damage is repaired.
Should new car owners get Optiom insurance? If so, why, and how does it impact your car insurance premium? Can they get Optiom through Western?
Certainly! I strongly recommend utilizing Optiom as the partnership between Western and Optiom offers significant value to our customers. This collaboration provides coverage for replacement cost protection on new vehicles for up to seven years in the event of a total loss. Given that a typical vehicle's value can depreciate by up to 20% annually, making replacement cost protection valuable, this coverage helps safeguard your investment effectively.
Can owners of older cars only get liability insurance and not any other car insurance?
As long as your vehicle is in roadworthy condition and may require an inspection, you are eligible for full coverage, including physical damage, collision, comprehensive, specified perils, and all perils. However, due to the vehicle's depreciated value, maintaining full coverage may not be the most cost-effective option. In the event of a total loss, the settlement amount may not reflect the vehicle's original value.
In many cases, selecting liability-only coverage can be a more cost-effective solution that aligns with legal requirements and provides protection against damages to third parties.
What insurance protects you against car theft?
Theft is covered under comprehensive, specified perils, and all perils coverage options. All perils coverage offers the most extensive protection but generally at a higher premium. Comprehensive coverage protects against most risks except collision and theft by a household member or employee. Specified perils will only give you coverage for: caused by fire, lightning, theft or attempt thereat, windstorm, earthquake, hail, explosion, riot or civil commotion, falling or forced landing of aircraft or of parts thereof, rising water,
If you lend your vehicle to another driver and there’s an accident, whose car insurance covers it?
If you lend your truck to a friend who wants to borrow it, you’re lending your insurance coverage!
When a customer says “PLPD” (Personal Liability & Property damages), there is a big misunderstanding about what that means.
Some of our customers will think that means “full coverage” and others will think that means liability only.
It’s always best to use terms as described on policy documents: Third party liability, Collision (damage to your vehicle if you’re at fault), Comprehensive (for things like fire, theft, hail, vandalism, hitting wildlife, etc.)
Does car insurance cover mechanical breakdown?
Car insurance does not cover mechanical breakdown. It only covers for the sudden, accidental, or unexpected insured losses. Anything mechanical breakdown is covered under the manufacturer’s warranty.
Are red cars more expensive to insure?
I honestly have no idea where that myth came from… but it is just that - a myth. The color of the car has zero impact on pricing. And unfortunately, we don’t get to see what color your vehicles are! Rating factors for insurance are for things like: vehicle make/model, parts availability, engine size, modifications, and driver history.
Is $1 million in liability insurance enough for my car insurance?
Unfortunately, it’s not! When we think about accident benefits (injuries) and the cost of vehicles; one million dollars goes a lot quicker than you’d think! If you have a car full of people, or if you hit multiple vehicles in one accident, that amount is eaten up very quickly. We always recommend $2 million dollars for liability insurance.
If someone steals your belongings out of your car (most common example – golf clubs) are they covered under your auto insurance?
No, they’re not! They are covered under your property insurance!
If I don’t tell my broker/agent about my speeding ticket they won’t find out.
That is not the case, we review insurance history reports and driver abstracts. It is better to tell us upfront so we can provide you with an accurate quote, or so we can prevent your policy from being cancelled.
If I don’t report my insurance claim – they won’t know.
This is not the case, when we pull the insurance history report it will tell us if the other party reported the claim, and that it will still be rated against you
If I report an insurance claim, it will make my insurance skyrocket. Is that true?
If you have at fault collision claims; you will see an increase. It’s not an astronomical amount after one, but if you have more than two in a five year period it will make it difficult to get coverages as well as seeing a larger increase.
If you were to have a comprehensive claim (hail, theft/attempted theft, hitting wildlife, etc.) that does not have the same impact on your premiums as an at-fault claim.
If my car is totaled, my insurance will pay off my loan. True or not?
Not necessarily, if you don’t have replacement cost protection you will receive what is called ACV (actual cash value) for your vehicle. Which is replacement cost minus depreciation. Which, depending on the payment terms/interest rate, might not pay off the loan.
When I turn 25 my insurance will go down. True or not?
I wish that were true for my 25-year-old past self! What does help to reduce premiums is each year you carry a valid driver’s license, have insurance with no claims, and don’t have any convictions. The rule of thumb is after 6 years of insurance/driving experience you see a difference in your premium based on your driving experience.
