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2024 is the highest year for weather disaster costs that’s ever been recorded in Canada, with four major weather events occurring in the short span of one month. A record-breaking 228,000 claims resulted from these events. Compare this to last year, where there were 160,000 claims for the entire year.

The tropical storm Debby recently passed by areas of Quebec, including Montreal, and cost over $2.5 billion in insured damages. This is miraculously even less than Calgary’s recent summer hailstorm, tallying over $2.8 billion in damages. Weather is becoming more extreme in Canada with each year that passes. What does it mean for your insurance? 

Before we sink our teeth into the impact of weather on insurance, let’s look at the rising costs of extreme weather. Although there is an upward trend in the severity of weather, there’s more to it than simply worsening conditions. There are several factors at play. 

First and foremost is the rising cost of construction materials and labour, which makes properties more expensive to repair when there’s damage. Inflation also plays a role, with houses from decades ago that once had a market value of $200,000 now being worth well over $800,000. The same damages that might have occurred when the house was first purchased would be much more expensive in present day, even if the incident wasn’t necessarily more severe. Aging infrastructure is also a major contributor. Cities with older sewer systems and buildings may be more prone to damage than newer construction, leading to higher costs. And finally, there’s the weather itself, which is becoming more extreme. From extreme heat to an increase in burned areas in Canada due to wildfire, our weather’s only getting worse. 

“The trend is going to continue,” says Mitch Insurance CEO, Adam Mitchell. “What was once described as a 100-year storm is clearly not the case anymore. Toronto, for example, has had three 100-year storms in just the last 11 years.”  

As weather events become both more frequent and severe, the more damage output there will be. Coupled with these other factors, we could be looking at a potentially sharp increase in costs in the coming 20, 10, or even 5 years.  

Extreme weather affects everyone—not just the people whose homes and cars were actually damaged.

The premiums everyone pays their insurance provider goes into a pool of funds. While some of these funds are used for operational expenses and profit, most are reserved for paying future claims. It’s part of the deal. You pay your premiums and your insurance company pays for any covered claims. Providers need to ensure that their pool of funds is big enough to be able to pay claims for all their clients. When the cost of claims rises, the pool must get larger as well. To manage this, insurers spread the risk around by increasing rates across the board. In fact, there’s a common saying in the insurance world which really summarizes the whole situation: “The premiums of the many are meant to pay the losses of the few.”

If your insurance company or geographical area is getting particularly hit hard by severe weather, then that impact on premiums will likely be greater.

Not all insurance companies are impacted the same way by severe weather, and so rate increases among different insurers could vary. Someone you know could see a 15% increase, where you might only see an increase of 5%. It really depends. 

In 2023, Mitch saw an average rate for home insurance prices for its new clients between June-August sit at $1,660. For existing clients renewing policies, that average was less at $1,581.

The same month range (June-August) in 2024 has proven much different. For new clients, the average rate was $2,159, and for existing clients renewing policies that average sat at around $1,711. That’s a pretty tremendous increase from the previous year!

If you’re someone whose seen significant rates increases in recent years, or even in the last couple of months, it might be worth looking for a better deal. Finding the best home or the best car insurance company in Ontario for your needs can be tough without the help of a broker, though, so we do recommend working with a member of our team to help you find the lowest possible price.

You can be impacted by Canada’s extreme weather in several ways, but we’re going to focus on two for sake of brevity: if your property has been damaged in a weather event and if your rates have increased because of damages felt country wide.   

If your home or vehicle has been damaged by hail, wildfire, high winds, flooding, etc., odds are that your insurance policies will cover you. Auto insurance can be a tad trickier as most weather damages to vehicles will fall under optional comprehensive coverage. So it’ll only be covered if you’ve elected to purchase that coverage. 

It can be difficult to file a claim following a mass weather event because thousands of other homeowners and drivers will be doing the same. We advise trying to get your claims submitted as soon as possible to expedite the process. Document everything: take photos, videos, and make sure you send this to your insurance provider as evidence when filing your claim. This is a requirement of your insurer to do so, and failing to do so may complicate or even invalidate your claim.

Even if you haven’t needed to make a claim throughout all this extreme weather we’ve been having, your rates still may have increased. It can feel frustrating to see your rates rise, especially when you’ve done nothing wrong.  

The best way to manage increasing premiums? Make sure you’re shopping the entire marketplace and looking at all available options to find the best coverage and price. “With no change coming to these storms in the near future, it’s important to regularly review your policies with a professional broker,” says Mitchell.  

“Some coverages like overland water have changed in the past several years and you may not have the right coverage in place to make sure you’re properly protected.”  

Mitch Insurance understands this is a difficult time for many, but we’re here to help. Give us a call if you need assistance finding the coverage suited to your needs, review your policy regularly, and help you shop the market for a better deal if your rates have already risen.

A lot of drivers might think of the occasional risky move as no big deal. The odd hasty U-turn, tailgating, speeding, or even aggressively cutting someone off in traffic—they might not be the best driving practices, but no harm, no foul, right?  

Unfortunately, dangerous driving can have serious consequences. In this article, we explore some of the most common risky driving behaviours, the possible penalties on your insurance rates, and some tips for better road safety.  

A study recently conducted by CAA South Central Ontario (or CAA SCO for short) discovered that 55% of Ontario motorists confessed to engaging in unsafe or dangerous driving behaviours in the past year. That is quite a lot, given that in 2021 there was an estimated 11,040,417 licensed drivers in the province. Furthermore, the percentage of drivers admitting to dangerous driving increased to 61% with young people between the ages of 18 and 34. 

So, what does this mean? Well, with Ontarians frequently participating in and witnessing dangerous driving behaviours, the odds of a collision are that much greater. More collisions means a less safe driving environment for everyone—and ultimately, higher insurance costs. We’ll elaborate more on the topic of insurance later in this article. 

Ontarians recognize their driving behaviours are worthy of penalty as well; in fact, many motorists go out of their way to avoid roads with automated speed enforcement (ASE) cameras. The same study conducted by CAA SCO found that 40% of Ontario drivers surveyed will actively avoid roads where these devices are installed. 

The study also identified several common dangerous driving behaviours. These actions were not only dangerous to the drivers themselves, but also put other motorists, pedestrians, and cyclists at risk.  

Here are the five most common dangerous driving behaviours: 

The study also highlighted dangerous driving behaviours that participants witnessed as well. Here are the most frequently observed behaviours: 

Given the data shows us that it’s more likely for people to notice others driving dangerously than admit to driving dangerously themselves, it’s safe to assume that a lot more people participate in risky driving behaviour than we might expect. Speeding, specifically, is a leading concern for motorists in Ontario and is a major factor in high collision rates—especially for young drivers. 

We’ve covered the topic of dangerous driving penalties in Ontario previously, but to recap: dangerous driving can lead to a temporary license suspension and even jail time and a criminal record. 

Careless driving and dangerous driving are different things in the eyes of the law. The difference between the two is intent: where careless driving is simply lacking in care, dangerous driving is intentionally putting the public at risk with the way you operate your motor vehicle. Careless driving will typically result in six demerit points and a fine, but occasionally jail time and a license suspension as well. 

While dangerous and careless driving both come with different legal penalties, they have similar effects on your insurance. Both will probably push you into the high-risk category for the next three years, and you’ll be paying double or triple your current insurance rate.  

There are many factors that influence your auto insurance rates, including your age, gender, vehicle, how often you drive, and so on. You might think that if you drive safe, dangerous driving won’t impact your insurance. Unfortunately, that’s not exactly the case. Dangerous driving contributes to higher collision rates and consequently more auto insurance claims. The more an insurance company pays out in claims, the more its pool of reserve funds for claims diminishes. To balance this out, rates may need to rise across the board—meaning your rates could go up to compensate for others’ dangerous driving, even if you’ve never had a ticket or accident. 

And if you’re the one partaking in dangerous driving and wind up getting into a collision or receiving a ticket, your rates are likely to be even worse off. As we mentioned above, it could launch you into the high-risk category, meaning insurers will see you as two or three times more likely to make a claim. 

If you’ve ever been convicted of dangerous or even careless driving, you could end up being labelled as a high-risk driver. This may mean paying double or triple your existing insurance rate. This can be concerning for many who are looking to keep costs low, but luckily there are ways to offset or at least slightly reduce the increase in rates.  

One option for high-risk drivers (and any driver looking to save on their coverage) is to opt into their insurer’s telematic program. Most major auto insurers offer this to reward good driving behaviours with discounted insurance. Telematics have also been shown to improve driving habits (such as speeding) as you’ll be more conscious about the things you do.  

As rates rise due to a collective number of escalating issues, including dangerous driving, car insurance becomes less and less affordable. Thankfully, Mitch Insurance has options to help you save on your coverage. Give us a call for a free quote today.  

Being a new driver often means facing the unwelcome surprise of higher insurance rates. It’s a discouraging reality for those who are just beginning to hone their skills behind the wheel. 

Enrolling in a driving school could be an excellent solution – both to lower your insurance rates and to sharpen up your skills.  

New drivers are typically viewed by insurance companies as being at higher risk of accidents than drivers with more experience behind the wheel. The risk is highest during the first year of driving and decreases with each year spent gaining driving experience.  

New drivers, especially teenagers, pay more for their insurance as a result. The best way to bring down your rates is to demonstrate to your insurance company that you’re a good driver. Experience takes time, but you can also enroll in a driver’s education course to show your insurer that you have what it takes to be a good driver.  

What if you’re not a new driver but are still seeking a way to demonstrate your skills? Unfortunately, if you’ve been licensed for several years and opt to take a driving course for any reason, you wouldn’t qualify for a credit (at least in Ontario) from your insurance company. The insurance credit is only applicable to new drivers who have been on the road for three years or less. 

Most, if not all, car insurance companies provide credit for driver training. This credit allows drivers with less than three years’ experience to start with a driving record equivalent to three years’ experience. They’ll maintain this status until they reach the actual three-year mark, at which point the years will increase normally.   

With the way the credit works, it makes the most sense for new drivers to take the course. Newly licensed teens are ideal candidates, as this can give them a head start on cheaper insurance but, again, it doesn’t apply for drivers who have already been licensed for four years or longer. 

Every province has different requirements, and some provinces don’t offer direct insurance discounts for completing driving school. British Columbia, Manitoba, Nunavut, Quebec, Saskatchewan, the Yukon and the Northwest Territories all do not offer formal discounts for completing driver’s education courses. 

Ontario drivers must complete a Ministry of Transportation (MTO) approved Beginner Driver Education course to qualify for an insurance discount. Insurance companies will likely want to see physical evidence of the driver’s history report from the MTO to ensure that the course was passed and that it was accredited. You can find a list of MTO-approved driving courses here.   

The way insurance companies price your insurance all relates back to risk. If you’re viewed as a driver likelier to get into an accident due to your individual statistics, like your age, driving experience, where you live, or even how often you’re on the road, you’ll pay more. Taking a driver’s education course or enrolling in driving school makes you safer from the perspective of an insurance company.  

Ontario’s G2 exam has a 50-60% passing rate, so many individuals who take it will end up doing so multiple times just to pass. Many of us who prepared for our G2 did so with friends and family, and while having lots of experience behind the wheel is always a good idea it’s not as beneficial as having a trained driving professional teaching you the best techniques. 

Drivers who complete an MTO-approved driver’s education course learn valuable skills that = help them avoid getting into/causing accidents and make the roads overall a safer place to be. Plus, did you know that completing an approved driver’s course allows you to take your G2 test sooner? You can get your G2 as soon as 8 months after completing a driver training program.  

It varies by insurance company. As the discount is less of a straight percentage from your current insurance premiums than it is a change in how insurers view your experience, it really depends on who your provider is and how they rate drivers with three years’ driving experience. You can expect a discount of between 10-20%.  

Be wary of driving schools and programs that boast a “superior insurance discount.” Driving schools and programs do not have any sway in the amount of savings a driver will receive, and oftentimes insurance companies won’t even differentiate between programs – so long as it’s MTO approved, and you have the evidence of your passing. Plus, these driving schools will likely charge you a lot more. 

Interested in learning more about potential discounts on your car insurance? Our team of insurance brokers is here to help. We have partnerships with dozens of car insurance companies in Ontario and can connect you with the one that best meets your needs. If you’re concerned about rates as a new driver, we can recommend all the best ways to save. Give us a call and request a free, no obligation quote today.  

There’s a growing problem with vehicle fraud in Ontario where criminals create fake vehicle identification numbers (VINs) for stolen cars and later resell them to unsuspecting buyers. 

Police estimate that around one-third of stolen vehicles are being resold in Canada after being re-vinned. Individuals are purchasing these seemingly legitimate cars, only for them later to be taken away when police determine that the vehicles were stolen from their original owners.  

Re-vinning can leave victims with serious holes in their pockets. Let’s explore how to verify a car’s ownership before purchase and identify some common fraud tactics to watch out for.  

Every vehicle is assigned a unique 17-character alphanumeric code known as a VIN that provides important information, such as its make and model, year, where it was manufactured and more.  

A car that has been re-vinned has had its original identity hidden to make it easier to sell to unsuspecting buyers. Purchasing one, even unknowningly, can result in legal troubles, safety concerns, and of course significant financial loss. 

Owning a re-vinned vehicle means law enforcement could seize it at any point, leaving you without a car. There’s a chance you might not get the money back that you spent on the vehicle, either. If your insurance provider learns a vehicle has been re-vinned, they’ll void your coverage and may also deny any claims you have made. 

You could face serious financial loss if you buy a car that was stolen and re-vinned. That vehicle could be seized by police and will be denied insurance coverage in the event of a collision or incident. Sometimes these vehicles pose safety concerns as well, which could put you and all your passengers at risk.  

Since insurance will not cover re-vinned vehicles, you could be financially responsible for any liabilities, damages, or even legal expenses that may arise. During a period of investigation, claims made by the owner of the car could risk being denied. Sometimes, re-vinned cars will be fought out by law enforcement, but other times they can be found

Is there any compensation available for victims of auto fraud or re-vinning? Well, if you’ve purchased your vehicle from a licensed automobile dealer then you may be able to seek recourse through the Ontario Motor Vehicle Industry Council (OMVIC). 

OMVIC might be able to help find a resolution with the dealer. If that’s not possible, then you may be able to access OMVIC’s Motor Vehicle Dealers Compensation Fund, which assists car buyers in the province who may be left financially impacted by illegal activities. In 2022-2023, this fund paid out $842,000 to over 120 claimants—almost double what was paid out in 2021-2022. 

But what if the stolen vehicle was purchased from a private or unlicensed dealer? This is the much riskier route as you never know if these entities are making true claims about the vehicle’s condition, its past repairs, etc. OMVIC cannot assist if you buy a car through these means and it later turns out to be stolen.  

When you’re on the hunt for a new vehicle, it’s important to be cautious. Re-vinning is a more common scam than you might think, and sometimes not even the dealer is aware that the car was re-vinned. Here’s some tips to help avoid auto sale fraud: 

If you back out of a vehicle sale because you suspect it might be a re-vin, consider reporting the incident to the police to have the matter checked out. You can also submit an anonymous report to Crime Stoppers Ontario at 1-800-222-TIPS. 

If you’ve recently purchased a new vehicle and you’re certain it was a valid sale, you’ll need to get car insurance before you can hit the road. Give us a call and one of our brokers will help you find a great deal on your insurance without sacrificing coverage.  

Repair costs for vehicles in Canada are increasing. The cost of repairs are one of the many factors that can influence auto insurance rates—so when they go up, your insurance premiums could, too. 

There are a number of reasons why car repair costs are increasing. Let’s explore why they’re impacting your insurance.  

Certain brands of vehicles cost more to repair after an accident, which contributes to higher insurance premiums. Up-scale, rare, or exotic vehicles are often expensive to repair and replacement parts may be in short supply. 

See, because the cost of repairing your vehicle directly affects the amount of a claim payout. If repair costs are high, insurers will increase premiums to offset potential losses—and to ensure they have enough funds in their pool of payout money to continue covering valid claims. 

Which cars cost the most to insure? Usually newer models with advanced technology are pricier due to the higher cost of repairs for these features. However, repair costs are just one of many factors that can influence how much a car costs to insure. Things like theft rates (if the car model/make is on the most stolen list), car safety rating, horsepower, and more also affect your auto insurance premiums.  

Everything’s getting more expensive nowadays, from groceries to gas and even car repair costs.  

In short, here are the reasons why car insurance repair costs are increasing: 

Electric vehicles (EVs) present a lot of benefits, from their minimal maintenance costs, savings on fuel, and environmental friendliness, but their upfront price can be a deterrent. However, as purchase prices come down, yet another challenge arises: claim costs, which can directly influence insurance costs. 

According to Auto Service World, the total write-off rate for EVs was around 7.48% in the first quarter of 2024. This is a figure up 8% from Q4 in 2023 and 30% up from Q3 in 2023. This is important for EV insurance costs because more claims for EVs signals that EVs might be likelier to be involved in accidents, and as a result many insurance providers may rate EVs higher.  

Claims’ cost aside, there are numerous challenges that come with repairing EVs, from the number of mechanical labour hours required to fix EVs and the nature of the skill that is required to do so. This can be reflected in the rate you’ll be charged to insure your EV.  

Like gas-powered vehicles and claim costs, EV claim costs are likely due to a combination of factors. With EVs especially, there’s an increase in the complexity of vehicles being manufactured, improved technology, and less supply for major components to do repairs.  

Issues with rising repair costs that EVs face are very similar to issues faced by gas-powered cars. However, with Canadian mandates to increase sales of passenger vehicles that are either EV or hybrid, repairing/restoring these vehicles may become more commonplace in the next few years and so rates could potentially fall to reflect this.  

When it seems like auto insurance is on a never-ending rise, you might be wondering what you can do to manage your budget. While rising repair costs are out of our control, there are ways you can manage your own rates:

Have more questions about insurance costs? Need help finding an affordable auto insurance policy? Our team of insurance brokers are happy to help. Give us a call and request a free, no-obligation auto insurance quote today.  

Ottawa is the capital city of Canada, so it’s no surprise the traffic here is thick. The census metropolitan area, in fact, is home to over 1,488,307 residents—many of which who own a car, and many of whom desire affordable auto insurance. 

Affordable car insurance isn’t always easy to come by, so you need to work with the best auto insurance company in Ottawa. But which one is the best? What makes a company “best?” Below is a comparison by price of the best auto insurers in the city of Ottawa. 

Note that auto insurance is divided into two markets: standard and high-risk. Standard is any driver who has a semi-clean or entirely clean driving record, and high-risk is for those with poor payment histories, poor driving records, or who have made lots of claims in a short time. High-risk tends to sell for much higher, so we’ve divided our comparisons into high-risk and standard to make things more fair. 

Table 1. Best regular market insurers for Ottawa drivers in 2024 

Table 1. Best high-risk market insurers for Ottawa drivers in 2024 

To give you an inkling of the kind of rates that Ottawa drivers might expect from the different insurers that service the city, we’ve generated our own list of eight fictional driver profiles—all with Ottawa postal codes. These drivers vary by gender, driving record, age, vehicle, etc., with the only constant being their city as well as coverage levels and type.  

Here are our drivers: 

While we haven’t covered best insurance companies in Ottawa previously, suffice to say they might have been very different results than this year if we had. Why? Because insurers’ rates change over time. No one insurance company will ever really be the best option for drivers in Ottawa as claims’ data emerges or insurers drop their rates to remain more “competitive.” With time, these rankings may change—maybe not a whole lot, but what was best for Ottawa drivers one year may not be the best next year, or even in six months. 

Although we’ve ranked Wawanesa as the best insurer for drivers in Ottawa, they may not be the best for you. We’ll work with you personally to help you find the best auto insurance as an Ottawa driver. We work with over 70 of Canada’s top insurers, so there’s plenty of options for us to find you a great plan. 

Getting into a car accident can be stressful, and it’s in these moments that we’re glad we have insurance. Unfortunately, the insurance claims process isn’t always straightforward, and industry trends have us experiencing longer delays than usual.

Here’s what to expect when you submit a car insurance claim.

Insurance claim processing time varies based on accident circumstances, case complexity, and provided documentation. More evidence like photos, receipts, and witness statements can expedite the process. Claims usually take between 4-6 weeks to settle and all personal injury and damage claims tend to be finalized within 18 months (about one and a half years). Keep in mind that claims tend to resolve faster with thorough documentation.

Let’s explore the different stages that take place when you submit an auto insurance claim.

Reporting the accident is usually a good first step, but this isn’t necessary if no one was hurt in the accident or the total damage is estimated to be less than $5,000. Either way, you’ll want to keep your broker in the loop – just in case the claim evolves or the other party (if there is one) decides to file a claim against you later.

The claimant, aka the policyholder, submits the initial application to put in an auto insurance claim. You can do this with a broker and this is known as the First Notice of Loss, or FNOL for short. This “report” should include the following details:

The FNOL isn’t an insurance claim but the intention to put in a claim. For the insurance company, it acts as the first part of the claim investigation.

Note that with current industry delays, some insurers will reach out within 48 hours (about two days) of the FNOL, but others may not contact you until after 10 days (unless an injury is part of your claim). Make sure your voicemail box is open for calls and be sure to keep an eye on your email (as this is sometimes the initial point of contact) so that a message from your insurance company isn’t missed.

The next step in an auto insurance claim is to gauge if the policyholder has coverage for the occurrence. Usually this is where the claims adjuster comes in. They’ll investigate the situation to determine whether a claim can be accepted. For example, a claims adjuster might deny a claim if the policyholder rolled over or hit a streetlamp and they didn’t have collision coverage in their policy. To assess if coverage is applicable, they’ll examine the details of the accident, discuss it with the driver, talk to witnesses, review damages, and do anything else needed to come to a fair conclusion on whether to accept or deny the claim.

Once insurance coverage has been confirmed, the claims adjuster will evaluate the damage done to the policyholder’s vehicle in addition to any property damage suffered by third parties (others involved in the accident that are not the insured).

Things the adjuster will do at this stage include:

Once the investigation is complete, the claims adjuster will determine your entitlements according to your auto insurance policy. Typically straightforward, this process leads to a decision by your insurer on whether to repair or write off the vehicle. Your insurance company will usually choose the most cost-effective solution. If repair costs exceed the vehicle’s value, insurers will generally opt to write off the car as opposed to paying to fix it.

If your provider decides to write off your vehicle, but you want to keep it and repair it yourself, this may be possible through an owner-retained salvage agreement. In this instance, your insurance company would deduct the salvage value of the car from the payout for your claim. 

Once negotiation is complete, the last step of your claim is payment or compensation. If your vehicle is written off, this is based off replacement cost or actual cash value – whichever is in your policy.  If you have OPCF 43 (aka a Waiver of Depreciation, which ensures your insurance pays the actual purchase price without subtracting depreciation if the car is less than 3 years old), this will also change how your insurance company perceives the value of your car.  

If your vehicle is being repaired, you’ll have to pay your deductible and then your insurance company will step in to pay the remainder of the costs.  

The insurance industry is currently experiencing severe shortages of adjusters and appraisers, both of whom are crucial to the claims process.  

For auto accidents where there’s more significant damage and a vehicle “teardown” is required to assess internal damages, or where there’s a strong possibility that the vehicle could be a total loss and must be reviewed by the insurer’s appraisal team, there’s usually a severe backlog. This is true of every insurance company, with the shortage of labour being felt industry wide. 

If a vehicle is deemed repairable, then the wait times for repair shops come in. This varies by region, but the average time it takes for a vehicle to be booked in is around 30 days. Repair shops are experiencing a shortage of mechanics and parts, making for longer repair times. 

If your vehicle is drivable, it may also take longer for your repairs to be scheduled since the shop won’t consider your car a priority. This is because you likely won’t be incurring rental costs, so you might end up waiting a few months. You might even receive your repairs in stages to ensure they can get the parts you need while they’re available. Some parts take longer than others, and there’s no standard list for what parts are harder to get. 

If the vehicle is considered a total loss, it goes from appraisal to the total loss team (adjusters whose specialty is total loss vehicles) where, unless you have OPCF 43 (an endorsement which changes how your insurance company values your vehicle) a fair settlement is calculated. Usually, you’ll receive an offer around 7-10 days (about 1 and a half weeks) after the total loss has been determined. 

Every company has a Consumer Complaint Officer who oversees the process of complaint-handling. For your convenience, FSCO has compiled a list of company Consumer Complaint Officers. You can access this list online at: www.fsco.gov.on.ca.

If it ever seems like you’re stuck and your claim is taking forever to go through, know that you’re not alone. Delayed claims are becoming an industry-wide experience and it’s tough to say when the wait times will begin to improve. If you’re dealing with a drivable vehicle that’s awaiting repairs, you’ll need to keep in touch with the repair shop rather than the adjuster for updates. On the other hand, if you’re dealing with a total loss, you might want to research your same make/model of vehicle on dealerships, auto raters (online tools or systems used to evaluate vehicle’s price based on their various aspects), etc. for an approximation of what your car’s value will be. Keep in mind that online marketplaces like Facebook Marketplace, Kijiji, etc., are not acceptable forms of comparison, even if that’s where you purchased your car.  

An adjuster should be able to give you a rough timeline once the claims process has begun, so keep that in mind. While you can contact your adjuster to ask for updates, you’ll likely need to accept the timeline they’ve offered as there isn’t much they can do to speed up the process. 

During this time, feel free to contact your insurance broker with any questions. They may be able to request updates for parts or estimates on your behalf or can give you some additional insights into what’s going on behind-the-scenes.  

Sometimes, you won’t have to file an insurance claim. This could be because: 

It’s generally a good idea to inform your insurance broker about car accidents regardless of if you intend to file a claim or not, particularly those involving other parties. You can let you broker know not to report back to your insurer but having them at least aware of what happened can ensure that they’re able to provide you guidance on the best course of action. 

When bad things happen, it’s good to know you have insurance to cover you. We understand you might be feeling overwhelmed during these difficult times. Mitch is here to answer any questions and support you throughout the insurance claims process. Get in touch to learn more about how we can help with your claim.  

As electric vehicles (EVs) gain traction on Canadian roads, they’re not just a trend – they’re a smart choice. Whether you’re attracted to long-term fuel savings or environmental friendliness, EVs offer compelling reasons to make the switch. 

But as you explore the world of EVs, it’s important to consider their impact on road safety. Here’s what you need to know: 

Here are some examples from the Kelley Blue Book comparing weights for different 2023 gas-powered cars and EVs: 

The main reason EVs are heavier is because of their batteries, which can add hundreds and hundreds of pounds. Although this extra weight doesn’t affect how the EV works, it can make crashes more dangerous. 

Even the strongest steel guardrails, designed to stop cars from veering off the road, might not always be enough to halt electric vehicles. A recent test using a nearly four-ton 2022 Rivian electric pickup truck showed just how powerful these vehicles can be. Engineers at Nebraska’s Midwest Roadside Safety Facility conducted the test, and you can watch the video below:

Due to EVs’ heavier weight, they need more durable tires. According to Hyundai, EV tires wear 20% faster than the tires of gas-powered vehicles. This is due to the acceleration of EVs, which creates a strong and instantaneous power. Traditional tires on EVs would require more frequent replacement, which over time can cost a lot of money.  

The added weight of the battery pack in EVs also means braking is a lot harder on EV tires; EVs may need additional braking distance to stop appropriately. On the more positive side, EV brake systems tend to require less maintenance thanks to regenerative braking.  

The real safety concern with the weight of EVs is not necessarily for the driver of the EV itself, but for others on the road. In a collision, a lighter vehicle is a lot likelier to have a different outcome when struck by a heavy EV versus another gas-powered vehicle of similar weight and size. Although the average EV on the roads in 2023 weighed roughly 4,000-4,500 lbs, recent EVs can weigh thousands of pounds more. That difference, in a crash, could be tragic.  

It’s the unfortunate law of physics. If your car is hundreds or even thousands of pounds heavier than the other vehicle, that other vehicle is going to experience far more damage.  

The video example above features a 2016 Kia Sorento SUV and a 2018 Kia Forte sedan (both ICEs, but used to demonstrate the weight difference impact in crashes) in a head-on collision. The SUV weighs almost 1,000 lbs more than the sedan. In the post-crash analysis, the dummies in the sedan were found to have a higher likelihood of injuries to the head, leg, neck, and chest. The sedan was also visibly far more damaged than the SUV.  

While EV sales are increasing, they still represent a small number of the total vehicles on the road. As a result, there’s very little crash and injury data to show, and heavier electric SUVs and trucks have only been on the roads in considerable numbers for a short period. 

For drivers, EVs are about as safe as you make them. EVs do have the advantage of advanced tech to help mitigate collisions, like proximity detection, rearview cameras, and even things like lane assist and autopilot.This is also true of newer ICEs. Not all EVs have autopilot, but some of these added features can help to increase overall vehicle safety and reduce the likelihood of a collision. Even Tesla has said that, per mile driven, drivers using autopilot crash 10 times less than the national average.  

In summary, for EV drivers, yes – overall, electric vehicles are relatively safe and collision frequencies may continue to decrease as technology continues to evolve. For others on the road? Maybe not as much. Since there’s not enough sufficient data due to the limited number of EVs on the road, all we can do for now is continue to analyze the available info and figures.  

Insurance companies give plenty of consideration to what make/model of car you drive, which can include the safety ratings of that vehicle. 

In Canada, there are 3 main entities that are used to determine car safety ratings. These are the National Safety Mark, National Highway Traffic Safety Administration, and the Insurance Institute for Highway Safety (IIHS) Safety Ratings. The latter two are based out of the US, but all are used to determine which cars are the safest to drive. Vehicles are ranked from “good” to “poor”, with cars on the “good” side often receiving lower rates and vice versa for cars on the “poor” end. Of course, car safety rating is just one piece of the puzzle when it comes to insurance premiums, and your rates could vary for all kinds of different reasons. 

Let’s explore this a little deeper. Imagine the same driver – we can call him “Steve” for the sake of this comparison – was a 40-year-old man, married, with a clean record who had a 14km commute and lived in Markham, Ontario. We’ll take Steve’s exact profile, down to the exact same coverage and limits, and we’ll find quotes for him for cars of different safety ratings but of similar value. For this comparison, we used the following vehicles and identified their IIHS ratings:

The cars used in the examples above weren’t EVs, but keep in mind that for the comparison the only thing considered was the difference in safety ratings.

While you’ll see a considerable price difference between the vehicles rated Poor vs those rated Good, safety rating is only one aspect of car insurance ratings. Still, it makes a different, so it’s something worth considering when choosing your new vehicle – EV or not.

Want to save on your EV insurance? Mitch works with dozens of auto insurers in Canada and can help you shop around to find the best rates, including companies that offer green car discounts when insuring EVs. Give us a call today to get a free, no-obligation EV insurance quote.  

Electric vehicle (EV) sales in Canada have been gradually rising. EVs are unique in that they are powered either fully or partially by an electric battery versus a traditional gas-powered engine. But is that battery covered in your auto insurance coverage? 

There are several situations where car insurance will and will not cover battery replacement and it all boils down to why the battery needs replacing. 

No. From an insurance perspective, batteries are considered “consumable” items. Other items also deemed consumable are tires, windshield wipers, engines, etc. These are all items that will wear down with time and even break as your car is used. Consumable auto products aren’t covered by your insurance, assuming they aren’t damaged or destroyed in an accident or other covered event. If they simply die or give out over time due to lack of maintenance or simple wear and tear, that’s a cost you’ll have to front yourself. With newer EVs, battery replacement could be covered by your warranty. Most EV manufacturers will have 8 to 10-year warranties or specific mileage on batteries. 

In most cases, yes. Your car insurance will generally cover the replacement of your batteries in an insured accident, so keep in mind that if only have the basics (third-party liability, uninsured motorist, accident benefits, and so forth) and your car’s batteries are damaged in a rollover, you may not be covered. 

Here are various scenarios where your batteries may be covered by your insurance, and the corresponding coverage that would trigger during the event: 

If you were to rollover in your electric vehicle or hit a stationary object such as a lamp post, concrete barrier, or similar object with no other vehicle participating, then this would be insurable under collision or upset coverage. Assuming your vehicle’s battery was damaged or destroyed in the accident, its repairs or replacement would be included in your final settlement.  

Collision coverage is optional, meaning that you must first purchase it to be covered. Without collision coverage, rollover events or collisions with stationary objects will not be covered and the price to replace your battery would come out of your own pocket. 

Collisions involving other vehicles can be tricky, because they can fall under any section of coverage depending on the circumstances. For example: 

In a not at-fault accident where the other driver is identified and has insurance, the collision (and your battery’s replacement or repairs) may be covered under direct compensation-property damage (DCPD) coverage. If you have elected to remove DCPD from your insurance policy, the incident could be covered by your collision coverage but, again, only if you’ve purchased it.  

In a not at-fault accident where the other driver is identified but doesn’t have insurance, or has insufficient coverage, then that would be covered under your uninsured motorist coverage. If it’s a hit-and-run or the driver is unable to be identified for whatever reason, you may have coverage under your collision insurance (if applicable). 

Assuming there is coverage for your accident, battery damage or loss due to vehicle collision would be covered under your insurance.  

Damage due to non-collision may be caused by weather, falling objects, fire, etc., and is covered only under an optional coverage known as comprehensive coverage. Lenders (dealerships or financing companies who you make an agreement with when leasing or financing a car) will frequently require collision and comprehensive coverage together, as per your agreement with them.  

For example, if a tree fell onto your vehicle and damaged or destroyed your battery, its repairs or replacement may be covered by your comprehensive insurance. Without it, these costs are likely to come out of your own pocket. 

Many types of theft are covered by “full coverage” auto insurance (i.e., having all the mandatory coverages as well as DCPD, comprehensive and collision), including when the whole vehicle is stolen, if only certain belongings are stolen, or if certain parts of the vehicle are stolen. 

However, if you only have the bare minimum insurance and elected not to purchase collision/comprehensive coverage, battery theft won’t be covered.  

A new hybrid battery or purely EV battery can cost anywhere from $2,000 to $20,000, depending on the vehicle model, power rating, and battery type. We highly recommend protecting your investment with the right car insurance to avoid having to pay costs out-of-pocket. Keep in mind that while wear and tear of consumable items are never covered by insurance, insurable accidents and events are – as long as you have the right coverage. 

Battery replacement is a significant cost that you’ll likely have to budget for when your EV’s battery life starts to dwindle, but it’s good to know you have insurance for when the unexpected happens. Give us a call to discuss your EV or hybrid’s insurance today.