A lot of people get confused by this because there are really two or more parts to your automobile insurance policy. The first part is mandatory here in BC and contains third party liability coverage and accident benefits (among other things).  The second part is commonly referred to as “own damage coverage.” The confusion comes … Continue reading Does automobile insurance cover both bodily injury and property damage?

There are a few common scenarios in which an insurance company might reevaluate a piece of business and make adjustments. One of the things underwriters look at to determine premiums is loss experience data.  If there were significant losses to your “class” of risk during the previous policy period, your premiums might go up as they … Continue reading When does an insurer reassess exposure?

There are 2 types of cancellations (ignoring flat rate), they are: pro rata and short rate. 1. A pro rata cancellation is a full refund of any unearned premiums. This amount is proportional to the amount of time remaining on the policy. For example, if an insured pays a premium of $12,000 for the year, … Continue reading What is the difference between pro rata and short rate cancellations?

Since fire is one of your insurance company’s primary concerns and makes up the base rate that you pay, your building construction affects your premiums by telling the insurance company how big of a fire risk your building is. As you might expect, a higher risk building will carry with it a higher premium. In … Continue reading How Does Building Construction Affect My Premiums?