AUTOMOBILE INSURANCE APPLICATION
What to fill out In an automobile insurance application
Here is some of the information to provide on an automobile insurance application:
- Vehicle information
- Year, make, model, body type, cylinder or c.c.
- Vehicle identification number (serial number)
- Estimated annual driving distance
- Lienholder name and postal address (the person or group you are still making payments
to if your car loan is not paid in full)
- Driver information
- Name of each driver, driver’s license number, date of birth, date first licensed in Canada,
other classes of license (if any), the percentage each driver uses the vehicle(s).
- Whether any insured drivers have driver training. If so, his or her certificate needs to be attached so he or she can be considered for a premium discount.
- Whether anyone else in the household or business is licensed to drive. If so, details need to be provided in the remarks section.
- Whether any driver’s license, vehicle permit, etc., issued to a person in the household or business has been suspended or canceled in the last six years.
- Whether any insurance company canceled automobile insurance for the applicant or any driver listed on the application in the last three years.
- Whether, during the last three years, any automobile insurance policy issued to you or any listed driver has been canceled or any claim has been turned down for material misrepresentation (not telling the truth).
- Whether the applicant or any listed driver has been found by a court to have committed a fraud involving automobile insurance.
- Previous accident and insurance claims in the last six years
- show details of an accident or claim on any automobile of any listed driver during the last six years (“any claim” means all claims and includes windshield damage, theft, vandalism, wind damage, etc.).
- provide details of the date of claim, type of claim, the amount paid or estimate of damage. If the claim was a collision, identify the driver and give brief
details on what happened and who was at fault. If help is needed, contact insurance representative before completing the application.
- identify the offense and the date of conviction(s) for each driver.
Convictions are offenses related to the operation of a vehicle. This includes seatbelt infractions, defective tires or brakes, failure to use or improper use of headlights, moving traffic offenses, such as speeding, and signaling offenses.
- get a motor vehicle record (MVR) from the Ministry of Transportation, which provides a two-year history. Insurance companies require a three-year history.
- don’t know or are unsure of conviction dates? Ask your insurance representative.
It’s important to pay a premium to the insurance company or insurance representative on time and in line with the slated agreement because there is no “grace period.”
Premiums are due as soon as billed by the insurance representative and should be sent by the applicant promptly. If the applicant is having problems paying as at when due, the applicant must discuss it with the insurance representative, to avoid the proposed account being delinquent.
Most times, additional payment time can be arranged or an alternative payment method may be offered.
To drive on public roads in the province, one must have Direct Compensation – Property Damage coverage, Uninsured Automobile coverage, Third-Party Liability and Statutory Accident Benefits. These are all compulsory. This means that by law, the applicant must purchase these coverages:
Liability Protects the member if someone else is killed or injured or their property is damaged because of his/her negligence. It will pay for legitimate claims against him/her up to the limit of his/her coverage and will pay for the costs of settling the claims.
Accident Benefits: Provides benefits if injured or killed in an automobile accident anywhere e.g in Canada and the United States regardless of who caused the accident.
Uninsured Motorists: Protects member if injured or killed by an uninsured motorist or hit-and-run driver to the extent he/she was not at fault. Covers damage to member’s automobile caused by an identified uninsured motorist.
Direct Compensation – Property Damage: Allows members to claim from their insurance company for damage to their vehicle and its contents caused by someone else. Direct compensation property damage means that, to the extent that one is not at fault in an accident with another vehicle, the insurer will pay for damage to a member’s vehicle and its contents.
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A deductible is the part of a claim that a member must pay. Higher deductibles usually mean lower premiums but higher financial risk.
Under the Direct Compensation – Property Damage provisions of the member’s policy, if he/she is not at fault in an accident (in Ontario involving another Ontario-insured vehicle for e.g), there is no deductible
unless he/she have chosen to lower his/her premium by selecting one. However, if he/she have selected a deductible, the full amount of it will apply, regardless of the degree of fault for the accident.
If a member has bought optional coverage for collision or upset, or all perils, and if he/she is fully at fault for the damage to his/her vehicle, a standard $300 deductible applies.
If a member is claiming for losses unrelated to a collision (hail dents, for example) your full deductible applies too.
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The information given on an application for automobile insurance is the basis for:
- the insurance company’s decision to issue or decline to issue a policy;
- calculating the premium required and terms and conditions of the policy, if one is issued.
The application contains a declaration where answers to questions on the profile of the applicant and all other of the insured automobile in the household or business, is confirmed, to ensure accuracy. There is also a warning of the possible consequences of leaving things out or not telling the truth – in other
words, errors or omissions in the answers.
Signing an application signifies confirmation of the information provided.
Taking full responsibility for the answers.