Car Insurance Cambridge

Your car insurance company may cancel your policy for a number of reasons. Or, they might simply refuse to renew your coverages when your policy expires. In both cases, you may find it difficult to convince other insurers to offer affordable coverage to you. Your termination informs them that a competitor has shown you the door, and likely had grounds to do so.

It’s important to realize that insurance companies do not terminate their policyholders’ coverages without having a good reason. Moreover, few will do so outright while the policy is in effect. Instead, they will wait until the policy is about to expire before letting the customer know he or she will soon have to look elsewhere for coverage. Having said that, you should be aware of the most common factors that prompt auto insurers to close their doors on their customers. We’ll cover several of them below.

Failure To Pay Your Premiums In A Timely Manner

Invoices get lost, people go on vacation, and funds may become tight. These and other reasons cause many policyholders to neglect to pay their premiums on time. Car insurers understand that circumstances in a person’s life may occasionally prevent him or her from sending in timely payments. So, most will extend a grace period during which the person’s coverages remain in effect. It is a temporary reprieve.

If your grace period expires, and your insurance company has not received your payment, they may terminate your policy. Or, if you routinely pay your premiums late, even if you do so during your grace period, they might refuse to renew your coverages when your policy expires.

A Poor Driving Record That Becomes Worse

A lot of people seem to attract traffic tickets. Some are negligent behind the wheel while others drive aggressively almost by habit. In both cases, the drivers break traffic laws, which result in tickets that are listed on their driving records.

Insurance companies check their policyholders’ driving records periodically. They do so in order to maintain accurate risk profiles for their customers. A single ticket, or even an at-fault accident, is unlikely to lead to the cancellation of your policy. But drivers who continue to rack up moving violations may eventually prompt their insurers to show them the door.

Your Driver’s License Is Suspended

A driver’s license suspension is hard to hide. It will be listed on your driving record, which, as previously noted, is checked periodically by your insurance company. Be proactive. If, after your license is suspended, you inform your insurer upfront about it, they may allow your policy to remain in effect. However, if you attempt to hide the suspension, you can expect your policy to be cancelled or allowed to expire.

Intentionally Providing Inaccurate Information

Lying about your circumstances in order to enjoy lower rates is a bad idea since it is likely to backfire at some point. Unfortunately, that fact doesn’t dissuade some people from trying. For example, many people tell their insurance companies they drive fewer miles than is actually the case. Others provide a false living address to reflect a safer part of town. Still others “forget” to inform their insurers about other people in their households that use their vehicles.

These lies and half-truths are often discovered at the worst times. For example, if you cause an accident, your insurance company may learn from your odometer that you drive far more miles than you claim. Or, if your teenage daughter causes a collision while driving your vehicle, and she is not listed on your policy, you may need to explain the reason.

These and other falsehoods can spur your insurance company to terminate your policy.

Submitting A Series Of Small Claims

Your coverages give you the right to file claims with your insurer for any covered event. For example, if your vehicle is vandalized, comprehensive coverage will pay to have the damage corrected. If you cause a fender-bender, collision coverage will pay for repairs. But suppose you keep extremely low deductibles and submit claims for small items (e.g. a door ding). Even though you technically have the right to do so, your insurance company may eventually decide your policy is more trouble than it is worth to them.

Consider raising your deductibles and paying for small items on your own. Doing so will help prevent your insurer from thinking of your policy as a nuisance.

Having your policy terminated will place you in a difficult position. Finding another insurer that offers the coverages you need at reasonable rates may prove to be problematic. The best way to avoid the problem is to maintain a clean driving record, be honest, and pay your premiums on time. Then, when your policy is about to expire, compare quotes from several insurance companies to find the lowest rates.

Canadians take pride in the good and bad things about their homeland: hockey, vast stretches of empty land, wildlife, and so on. They also are happy to fess up to behaviours that are not necessarily admirable. This is especially true of Canadian drivers, who are notoriously careless on the road. A recent Kanetix survey reveals that eight out of ten Canadians openly admit to having one or more bad driving habits. Conducted by Leger Marketing, the survey provided plenty of interesting little tidbits about Canadian drivers:

Fast Food

McDonald’s Happy Meals are always pretty fast, but in Canada, they go a minimum of 100 Kilometers per hour. A full 39 percent of survey respondents admitted to eating behind the wheel on a regular basis. For a Canadian living a hurried lifestyle, it makes sense. If you’re going to gorge on burgers and fries, why bother sitting down at a table? The front seat of the Honda Civic is more than comfortable enough, and the car’s radio can serenade you with commercial jingles as you stuff your mouth.

Speed Demons

The second most common bad habit of Canadian drivers may be what most people would expect to be the more common habit: speeding. Driving above the speed limit does come in a close second to eating behind the wheel, with 36 percent of Canadians admitting to ignoring speed limits. It appears that drivers from Ontario speed the most, with 42 percent admitting to speeding.

The reasons for speeding vary from person to person. Some drivers speed for the same reason they eat behind the wheel: a complete lack of time. Others simply do it for the thrill of driving fast. No matter the reasoning behind speeding, drivers almost always put themselves at risk when they choose to put the pedal to the metal. A huge portion of car accidents can be attributed to disregarding the posted speed limit.

Aggressive Driving

Two bad habits included in the Kanetix survey can be attributed to excessive aggression on the road: following other cars too closely and road rage. 27 percent of respondents are guilty of one or both of these bad driving behaviours. Everybody always thinks of Canadians as laid back, but they clearly can work up quite a temper while out on the road. And nobody wants to get in the way of an angry Canadian.

Beauty Queens

Instead of raging behind the wheel, some Canadians choose to hide their latent aggression behind a beautiful veneer of lipstick and mascara. And what better time to cover your imperfections than while driving to work? Why else would car companies bother to install rear-view mirrors? If nothing else, drivers who get into accidents while applying makeup will be able to look pretty for the cops.

Perfection

There may be a lot of law breakers on the roads in Canada, but there apparently are a lot of perfect little angels driving around as well (one has to wonder why they bother to drive at all when they are equipped with halos and wings). 19 percent of drivers claimed to have no bad habits at all. It would be interesting to see if the drivers’ records corresponded with their survey answers. Unfortunately, we’ll never know.

Do you worry about your safety when on the road? It’s a natural concern, especially if you drive a lot on your own or in difficult locations. What would happen if you were stuck in your car overnight? Even in urban areas, weather has been known to cause multi-hour delays and strand motorists on the highway. Here are a few things that will really help make sure that you stay safe:

1. Mylar blankets. Actual blankets take up a lot of room, but you can fit two mylar blankets in your glove compartment. If you get snowed in on the highway, this can mean avoiding a hospital stay for hypothermia or frostbite.

2. A hand-crank flashlight. Not the battery kind, which is bound to fail you when you most need it. And while a cell phone charger is a no brainer, what if your car won’t start to run the charger? If you are on the road a lot (or live in an area prone to severe storms) a USB hand crank charger is a worthwhile investment.

3. Umbrella. Because you can absolutely guarantee that if you don’t have one with you, you’ll need one. Just get a cheap one from a street vendor or a discount store and keep it tucked under the passenger seat, then you will always be ‘covered’.

4. Food. Specifically, energy bars, protein bars or snacks with a long shelf life. Again, if you get stuck in your car overnight, you will need food. Individual servings of snacks also work well, especially if you have children.

5. Water and hydration assistance. Again, you never know what might happen or where you might be stranded. Keep bottled water in the trunk (where it won’t warm up). If you live in, or are planning a trip in, an extremely hot climate then water may not cut it. Keep a couple of packets of Emergen-C or powdered Gatorade or similar in the glove compartment. It might be a literal lifesaver.

6. Cash. For those times when you’re fifty miles down the road and realize your wallet is still on the kitchen table…and you’re almost out of gas. Or for when you’re hungry, in the middle of nowhere, and stop at some two-bit diner that doesn’t take plastic.

7. Jumper cables. Might save your butt somewhere in the middle of nowhere. Also, might save somebody else’s butt.

8. Roadside flares, or a reflective triangle. To keep you from being hit when you’re parked at the side of the road trying to work out why your car won’t start.

9. First aid kit. Don’t leave home without one, especially if you have children. There are full kits for sale that are specifically designed for cars, or you can put your own together.

10. Ice scraper. If you ever get snow or even cold temperatures, you will need an ice scraper, and it should live in the car. Trying to get your windshield clear without one is pretty much guaranteed to be a long and unpleasant experience.

11. Tire gauge and air compressor. Most modern cars have a tire pressure monitoring system that makes a tire gauge less important. But when you are sitting at a rest stop miles from anywhere, possibly a hundred miles from the nearest garage, having an air compressor can get you home safely.

12. Tow rope. Yet another way to get yourself or somebody else out of a very bad situation. You can use it to tow your car to the nearest garage or to pull a vehicle out of a ditch and possibly get it back on the road.

Keep these few things in your car, and you will be ready for almost anything that might hit you on the road. Almost.

The coming of winter and snowfall can bring to mind thoughts of the holidays and a winter wonderland. Winter can be the most dangerous time of year for drivers, though, especially those who are not prepared. The following tips outline best practices for winter driving.

Vehicle Preparation
While keeping a vehicle maintained all through the year is important, it is more vital during the winter months to avoid becoming stranded and being placed in a dangerous situation.

When winterizing a car, the brakes, battery, fluid levels, lights, wiper blades and defroster should be checked first, as these are the top priority. Attention should also be paid to belts, oil, and the fuel and ignition systems. The car should also have proper snow tires.

The gas tank should be full when going on a trip of any length and should be topped off frequently along the way. A full fuel tank will prevent condensation from forming and will also be an advantage to the driver, in case there is a problem.

It is also helpful to have a fully charged mobile phone, to make it easier to call for help in case something unexpected should happen.

Winter Car Kit
When travelling during the winter months, a driver should be prepared for emergencies by keeping a winter car kit handy.

A winter kit should have jumper cables, flares, ice scraper, shovel, cat litter, fluids, flashlight, blankets and an extra set of warm clothes, including boots. It is also a good idea to include food supplies, such as nuts and candy, that can provide energy while dealing with an emergency or waiting for help. Reflectors and a bright coloured cloth will make the vehicle easier to see for other drivers.

Safety First
Winter driving is very different from driving in other seasons. It requires slower speed, more forethought and closer attention to conditions.

Before starting out, all snow should be cleared away from lights and windows. It should be removed from the roof of the car, as well. As it takes longer to stop in winter conditions, the brakes should be used early and in a correct manner. A sudden stop can quickly turn into disaster.

Headlights should be turned on and driving done at a much slower speed than normal.

Bridges usually freeze first and may develop black ice that is difficult for a driver to see. This can make them more dangerous to drive on than the surrounding road. On and off ramps may not be cleared as well as the highway and could be icier. Drivers should use extra caution.

The cruise control feature should never be used in winter driving situations. Road conditions are too unpredictable for it.

Trucks and 4×4 vehicles perform better overall in the snow, but are heavier and require a longer stopping distance. They also have a higher centre of gravity and tip over more easily than a car. Drivers should take this into consideration and not become overconfident.

Snowplows are often on the road during storms and require a lot of extra precautions. Drivers should stay back at least 200 feet from a plow or other road maintenance vehicle. Passing a plow is not advised due to poor visibility from blowing snow and the fact the road ahead of the plow may have worse conditions than the road behind it.

In Case of Emergency
Despite preparation, emergencies do happen. A driver in need of help should call 911, stay with the vehicle and try not to overexert. If it’s not an emergency, you can contact the regional police at (519) 653-7700 or OPP at (888) 310-1122. Running the engine every 10 minutes or so for heat is fine, as long as the tailpipe is clear of snow and debris. Having something bright on the antenna will assist rescuers in finding the car.

If there has been an accident, the vehicle should be moved off the road, if possible, and emergency services should be called. A driver should always have license and insurance information at the ready and should assist if anyone has been injured. If property has been damaged in the accident, the driver must make every effort to locate the owner.

Driving in the winter can be tricky business but with some extra preparation and common sense, it can be smooth sailing.

With temperatures finally starting to fall, it’s time to begin making plans for what needs to be done to protect your transportation for the winter. Some of you are likely to drive your car or truck during the winter time; however others are planning on stashing your vehicle in some kind of storage during the cold months. Facts about storing your vehicle may not affect every one, particularly those of you in the warm southern regions.

Having said that, if you are planning to store your car or truck through the winter season, these tips will be must read info:

The First Step May Not be Obvious, but it is Critical

Cleaning your car or truck now is going to be incredibly easier compared trying to do so after a long period of not using it.. Thoroughly clean your vehicle inside and out. A comprehensive “cleaning” needs to include the inside, exterior, undercarriage and underneath the hood.

Any sort of dirt and grime that’s built up on the car or truck is going to be faster and easier to get rid of today as compared to after it has set for a few months. Beginning with the interior, make certain you vacuum and thoroughly clean everything. The cleaner the vehicle is, the more effectively it’s going to cope with being stored for a long period.

Be sure you completely clean the undercarriage of the vehicle. This is the “sneaky” grime and dust that wears cars out from the inside-out. The dirt and grime allowed to remain on the undercarriage can cause rust or corrode metal surfaces even when you do everything else perfectly. Wash the exhaust system completely, particularly any chrome or stainless steel exhaust points as doing this will prevent corrosion. When you are finished with the undercarriage, it’s time to start working on the exterior.

Thoroughly wash your vehicle – it is going to be worthwhile to spend the extra time it takes to make it glisten. When the vehicle is thoroughly clean, give it the very best wax job possible. Wax every place you can find paint – your vehicle and your pocketbook will both love you for doing this. Shine and polish all chrome and metallic surfaces on the vehicle to maintain a tough finish to survive the cold months of winter. Examine the vehicle carefully to be certain you haven’t missed anything and confirm it’s completely dry prior to storing it. Any type of moisture that remains can corrode any metal components while the car or truck is stored.

Think “Preventative” Maintenance

Preventative maintenance can make a huge difference in how well your vehicle works “after” it has been sitting throughout the winter. The following fluids should be changed before storage:

Engine oil, brake fluid, coolant (anti-freeze), windshield washer fluid, transmission fluid should all be freshly changed.

When a car or truck is driven after an oil change, minor levels of moisture build-up or condensate starts appearing within the engine. When the automobile isn’t driven, the moisture adds to the chance of corrosion on internal engine areas. By simply changing the oil just before storing, you can diminish the moisture in the engine. You may also want to use synthetic oil, since it offers improved coating and will not deteriorate as easily as standard oil.

Although it seems counter intuitive, you need to top-off your vehicle’s gas tank. Because most fuel tanks are metal, filling-up the gas won’t enable moisture to develop as a result of gas fumes that can cause corrosion. A gasoline stabilizer really should also be employed, since gas can breakdown during a prolonged stretch of time.
Following that, detach the battery connections. In fact, in the event the car is going to be put away for an extensive stretch of time, take it out entirely. Old age coupled with very low temperatures during the winter can lead to batteries cracking, which can expose your engine compartment to battery acid. It’s also wise to utilize a battery trickle charger or tender.

These kinds of appliances hook up to your battery terminals and can provide a continual, steady charge. These devices will automatically shut off regularly to avoid overcharging. Cars and trucks contain electric powered accessories that will use power even though the vehicle is not operating and definitely will discharge the battery.. These battery trickle chargers will prolong the life span of the battery in your car.

There are a handful of alternatives on the best ways to take care of the tires. It is possible to jack up the vehicle and set it on jack stands, dress the tires in lithium grease, or you can over-inflate the tires.

If you place your vehicle on jack stands, this should stop the tires from forming flat areas will also decrease the stress on suspension bushings as well as other components. The second option is to dress the tires with lithium grease. This is a preventative measure to prevent the tires from drying out, and developing cracks or leaks. You should never apply petroleum based lubrication, like petroleum jelly or any of the protective sealants, since they will ultimately dry out and can realistically dry and crack the rubber of the tires. The final option is to over-inflate the tires, which will prevent the development of flat spots.

There is a high likelihood that you will be involved in an auto accident at some point in your life. It may be a minor fender-bender that causes little damage and no injuries. Or, the event might result in substantial property damage and severe injuries for those involved. It can happen at any time to any person, regardless of how safe he or she is on the road.

If you are blameless for a collision, your rates should remain unaffected. On the other hand, if your actions played a role, you can expect to pay higher premiums for years down the road. We’ll take a closer look at this issue below. First, you’ll learn how an accident is treated in a “no-fault” insurance system. Then, we’ll explain why your insurance company may be willing to “forgive” an at-fault accident, and what that “forgiveness” means for your rates.

Auto Accidents In A “No-Fault” Environment

Suppose you live in a province that has implemented a “no-fault” insurance system, and are involved in a collision. You and the other driver would submit your claims to your respective insurers to seek compensation for needed repairs and medical attention. It’s tempting (and reasonable) to think nobody is at fault, given the name of the system. In reality, from your insurer’s point of view, someone is always at fault.

Insurance companies rely on rules that help them to determine who is at fault for a collision. These rules are usually set by the government, and cover dozens of scenarios. Insurers can review them to identify which driver caused an accident, and if both were to blame, the percentage of fault that should be applied to each participant.

This means that causing a collision in a no-fault environment is still likely to result in a rate increase. It is important to understand the reason.

How Your Insurance Company Interprets An At-Fault Accident

Before your insurer extends coverage to you, they compile a profile that reflects the risk of loss you represent to them. Their assessment is based on several factors. One of the most important is your driving record.

Among other things, your record is considered to be an accurate gauge of the likelihood you’ll cause a collision in the future. It includes traffic tickets, convictions, and at-fault accidents that have occurred over the last several years. This information plays a key role in calculating your rates.

When you cause an accident after this risk assessment has been completed, your insurer must update the profile. This is necessary since the collision increases the level of risk you represent. Your rates may not increase immediately, but are likely to do so once your contract expires. The exception is if your insurance company is willing to “forgive” you.

Can You Ask Your Insurer For “Forgiveness?”

Many companies offer a special feature called accident forgiveness to some of their policyholders. This feature protects them from the rate increase that would usually follow an at-fault collision.

Earlier, we noted that insurers evaluate the level of risk policyholders represent based on their driving records and other criteria. The risk is reflected in a rating that is applied to each policyholder. Normally, an at-fault accident will cause your rating to drop, which in turn will cause your premiums to increase. If your insurer offers accident forgiveness, your rating is provided support. It may drop a little, but will be spared the plunge it would otherwise take.

This feature is handled differently by different insurance companies. Some extend it automatically to all policyholders who have a clean driving record (it is rarely offered to those with spotty records). Others extend it as an optional feature that can be added to a policy for a price. Additionally, the level of protection provided by this feature varies. Some insurers will completely “forgive” an accident while others will only partly do so.

Another thing to keep in mind is that this feature is only activated following a first-time at-fault collision. If you cause a second accident, your rating will not be protected. It will plummet, and your premiums will rise accordingly.

To summarize, a collision should only affect your rates if you are at fault. Even then, you may be forgiven. Ask your insurer whether they offer accident forgiveness to policyholders with clean driving records. If they don’t, this may be a good time to compare car insurance quotes from other insurance companies.

Auto theft continues to be a major problem. According to the Federal Bureau of Investigation in the U.S., a motor vehicle is stolen every 40 seconds. The Insurance Bureau of Canada (IBC) reports that auto theft costs Canadians over $1 billion each year, taking into account court costs, legal fees, and deductibles. Surprisingly, many people are unaware their auto insurance policies lack coverage for theft. If their vehicles are stolen, they’ll be forced to pay the resulting costs out of their own pocket.

It’s worth taking a closer look at car theft in the context of how it affects your insurance premiums. Below, we’ll present a short list of vehicles that are highly coveted by thieves. You may be surprised by some of the cars on the list. We’ll also explain the effect alarms and electronic immobilizers have on auto theft, and why both are fallible. Lastly, we’ll provide a few savvy tips to minimize the risk that your vehicle will be stolen.

How Auto Theft Affects Your Car Insurance Rates

Theft is covered by the comprehensive portion of your insurance policy. This coverage is not mandatory in any province or territory. It is optional. If you have not added it to your policy, you will be responsible for covering expenses that result from having your vehicle stolen. This includes finding another mode of transportation, and repaying any outstanding balance on an existing auto loan.

Certain vehicles are more likely to be stolen than others. Driving a car that is frequently targeted by thieves increases the risk of loss to your insurance provider. Your insurer will raise your premium on your comprehensive coverage to compensate for the risk.

Additionally, a small portion of the premiums paid by all policyholders is used to pay for losses that result from auto theft. The IBC reports this amount to be approximately $35 a year.

What Type Of Vehicles Are Targeted By Thieves?

Most people assume that car thieves focus on late-model vehicles. But evidence suggests otherwise. The following list reflects the top 7 stolen vehicles in 2010 according to the IBC:

1. 2000 Honda Civic
2. 1999 Honda Civic
3. 2002 Cadillac Escalade
4. 2004 Cadillac Escalade
5. 2005 Acura RSX
6. 1997 Acura Integra
7. 2000 Audi S4 Quattro

Clearly, thieves are focusing their efforts on older vehicles. Many experts believe the reason is because such cars have less sophisticated alarm systems. In addition, few have electronic immobilizers installed (we’ll discuss immobilizers in more detail below).

Are Car Alarms Effective For Thwarting Theft?

An alarm system is a useful deterrent to theft. If a thief knows a particular vehicle is equipped with an alarm, he will be less likely to risk exposure. Instead, he’ll move on to easier prey. But it is worth underscoring that alarm systems are not foolproof. They can be circumvented. For example, professional car thieves often load targeted vehicles onto flatbed trucks. Doing so eliminates the need to break a window and start the car, which in turn undermines the car’s alarm.

To be sure, it is a good idea to install an alarm system in your vehicle. But realize it is not infallible.

How Electronic Immobilizers Reduce The Likelihood Of Theft

Beginning in September 2007, automakers were required to install electronic immobilizers into their passenger vehicles. These systems are designed to make it impossible for would-be thieves to start the cars they are attempting to steal. The immobilizer becomes automatically activated the moment the driver turns his or her engine off. The circuits that trigger the vehicle’s ignition system (including the starter) and fuel system (specifically, the fuel pump) are immediately disengaged. These systems have become the gold standard for preventing auto theft.

Note that savvy thieves can still take a car equipped with an electronic immobilizer by loading the vehicle onto a flatbed truck. Thus, while these systems have proven to be more effective than car alarms, they too can be thwarted.

Protecting Your Vehicle From Would-Be Thieves

To discourage thieves, keep your windows rolled up and your doors locked whenever you leave your car unattended. Also, make certain that valuable items (jewelry, laptops, cash, etc.) are kept hidden. The safest place to keep them is in the trunk.

If you’re parking your vehicle at night, do so in a well-lit area. Thieves prefer the cover of darkness to avoid discovery. Park near traffic, if possible.

Turn your engine off if you intend to leave your car. Many people leave their engines running (with the doors locked) while visiting a store for a couple minutes. Keep in mind that a professional thief can break into, and steal, a car within thirty seconds.

Regardless of the preventative measures you take, there will always be a small risk that your car will be stolen. Thus, comprehensive coverage may be valuable. Shop around and compare quotes to ensure you receive the lowest rates possible.

Numerous world economies are going through the kind of turmoil that has not just lowered auto sales, but actually pushed them to lower levels than has been seen anytime during the past two decades. Even in the United States, where auto sales have remained somewhat strong amid a deep recession, numbers have yet to even come close to approaching what was recorded during the economic boom of the previous decade.

In Canada, the picture is slightly rosier. While auto sales did momentarily dip to nearly record low levels late last decade and early in 2010, the recovery in sales numbers has been sharp and significant over the course of 2011. In fact, the most recent sales numbers for October 2011 indicate that the Canadian automobile sales numbers are the strongest they’ve been, year over year, that at anytime int he past four years. This had led to general optimism about auto sales forecasts going forward through the rest of 2011 and into early 2012.  This bodes well for the city of Cambridge, as we’ve got a robust auto manufacturing economy.

In the United States, Decreased Estimates — In Canada, an Increase

Automobile trade industry authority Edmunds.com recently revised its overall United States automobile sales forecast down to 12.6 million for 2011 from 12.9 million. Even its estimate of 12.9 million units was a downward revision from an estimated 13.1 million sales that it issued in January of 2011. But while the United States shows a few signs of lagging demand, the Canadian auto market is just beginning to pick up.

In October, the Canadian automobile manufacturers reported an overall increase of more than 13 percent in total sales year over year from October of 2010. That’s a huge increase, even amid the larger gloomy economic picture worldwide. This increase is largely attributed to the fact that Canadian consumers are very “truck heavy” in their buying habits, and the major Detroit auto makers have been able to offer some deep discounts on their line of pickup trucks and other hauling and towing vehicles.

Strong October demand in Canada for trucks and vans, combined with solid demand in the light and compact car sectors, has prompted Edmunds to issue an upward revision ints forecast for overall Canadian auto sales in 2011. The company expects Canadian buyers to snatch up more than 1.4 million vehicles this year, an increase of more than 1.3 percent from the previous year’s sales. That’s a big move for Edmunds, which has recently revised its sales forecasts downward not only for the United States, but also for most economies throughout Europe and Asia.

Lower Forecast for Foreign Vehicle Manufacturers in Canada

While the sales of American-made automobiles are quite strong in Canada, foreign manufactures have not fared quite as well nationwide. That’s largely due to the Japanese earthquake which struck that country in March of this year. That earthquake resulted in significant supply chain disruptions and manufacturing complications for Japanese manufactures like Honda, Nissan, and Toyota, and those manufacturers have had to compensate for those difficulties by raising prices and offering fewer deep discounts to cash-strapped consumers.

Because of these challenges to Asian auto manufacturers, Edmunds expects that the overall trend in Canada will show stronger than expected sales for the Detroit-based automakers — Ford, General Motors, and Chrysler Corporation — while Japanese manufacturers will perform more poorly than initially expected in early 2011 forecasts. It does expect demand for Asian vehicles to be stronger toward the end of the year and into 2012, however, as many of the earthquake-intitiated complications begin to be resolved and irrelevant to pricing and purchasing decisions.

A Good Year for Canadian Vehicle Buying

Amid a struggling word economy and lower-than-expected sales in the United States, Europe, and Asia, the Canadian vehicle industry is outperforming. That’s good news for car dealership owners and eager buyers throughout the country, and it’s a trend that looks to continue for the foreseeable future in Canada.

In 2010, the Ontario government made some changes to the auto insurance industry, but there is no need for alarm. The changes that have been made have actually made it possible for the average Cambridge driver to have more choices. Auto insurance companies would have sent their clients a letter about these new differences to their auto insurance policies, but those who did not have insurance at the time or missed the letter may need to learn what the changes are all about.

Medical Care

Cambridge drivers may now purchase extra coverage for their medical treatment and rehabilitation costs for an injury that is not catastrophic. Previously, the most coverage they could purchase was a maximum $100,000. Because of the new reforms, Cambridge drivers may purchase $50,000 for their basic coverage. If they would like to purchase more of this coverage, they have the option of purchasing $1,100,000.

Auto insurance companies also sell insurance for any attendant care that may be needed. Previously, all Canadians could purchase for this type of coverage was $72,000, but now they can purchase $36,000, and they can opt to purchase even more if they like.

Medical Care for Catastrophic Injuries

Canadians also have the option of purchasing auto insurance for catastrophic injuries, and the amounts have been increased for this coverage. Before September 1, 2010, Canadians could only purchase $1,000,000 coverage for their catastrophic injuries that require medical treatment and rehabilitation. After September 1, Canadians were then able to begin purchasing a maximum of $1,000,000 coverage but if they need more, they had the option to buy it.

The Caregiver and the Housekeeper

In earlier years, auto insurance companies gave their clients the option of purchasing auto insurance that would cover the cost of physically caring for any dependents and taking care of the house. This coverage used to apply whether the injury was catastrophic or non-catastrophic, but it currently only applies to catastrophic injuries. With the new rules, people can still purchase this coverage for non-catastrophic injuries but it will be optional.

Salary Replacement

When people are out of work due to a serious injury, the coverage they could purchase for salary replacement in the past allowed for 80 percent of the insured’s salary up to a maximum of $400 each week. The new law means that basic coverage will replace 70 percent of the injured person’s salary with the same maximum amount of $400 each week. The other difference is that people can purchase more of this coverage. They can purchase enough coverage for $600, $800 or $1,000 each week if these numbers are more suitable for their needs.

Minor Injuries

Cambridge drivers can now purchase a maximum of $3,500 coverage for their minor injuries.

Increased Premiums

Premiums used to increase for Cambridge drivers even when they were discovered to only be 25 percent at fault for the accident. The good news for Cambridge drivers is that if they are 25 percent or less at fault, their insurance premiums will remain the same with the new reforms.

Credit Scores

When auto insurance companies set insurance rates, some of them will take advantage of the credit score. They will ask to run a credit check and depending on whether the score is high or low, the rates will be set high or low. With a low credit score, auto insurance companies know that people are generally less responsible than those who pay their bills on time and have high credit scores. The result is that Cambridge drivers with lower scores have higher rates.

With the new reforms, Cambridge drivers with low scores no longer have to worry about their credit scores where their auto insurance is concerned. At no time in the process, from receiving a quote, filling out an application or having their policies renewed, will an auto insurance company be able to request to do a credit check.

Deductible for Property Damage Coverage

Property damage coverage did not require that Cambridge drivers pay a deductible. With the current reforms, auto insurance customers may choose to pay a deductible of $300 or $500 for this coverage that repairs the policy holders’ vehicles after a collision. The act of applying a deductible makes it possible for the auto insurance company to lower these clients’ premiums because they are now sharing the risk with the company.

The new reforms that went into effect on September 1, 2010, are highly beneficial to the Cambridge driver and improves their choices for auto insurance coverage. Auto insurance reforms and technological savvy make Cambridge drivers fortunate to live in this great Canadian city.