Frequently Asked Questions (FAQs)

  • How Much Does Tenant Insurance Cost?

    An extremely basic tenant insurance policy may cost only around $10/month, but since we advise increasing from the bare minimum and acquiring enough insurance to sufficiently pad your personal liability and contents coverage, you’ll find you may pay within the $20-$40 range for your tenant insurance policy. Rates for tenant insurance varies based on the kind of unit that you rent, how many tenants are in that unit, the total value of your contents, any prior tenant/home claims under your name, and the physical location/postal code of the unit.

  • What is Tenants’ Legal Liability Coverage? Why Is It Important?

    In Ontario, tenant’s legal liability coverage is automatically included in your tenant insurance package. It is used to cover the losses or damages of a property resulting from the actions of a renter that is occupying a space at the property.

    This is important because, A) it is sometimes required by the landlord as a means to protect themselves from the cost of damages a tenant could cause to the physical space and B) mitigates the risk of any legal issue, since the insurance pays for the cost of the damages or losses caused by the tenant.

  • Why Do I Need Tenant Insurance? What If My Landlord Already Has Coverage?

    Chances are, your landlord will already have their own insurance coverage. The “master policy,” or your landlord’s insurance, is designed to cover the physical property, including the structure of the building and all common areas. It will also cover the landlord’s liability.

    However, the master policy does not cover the tenant’s personal liability, nor will it cover their belongings. Some master policies may cover furniture or appliances that came with the individual units, but will not cover anything you’ve brought in to make your house feel like a home. As such, it’s important that every tenant acquire their own policy, to fill the gaps that a landlord policy will cover. Tenant insurance is inexpensive and sometimes required by landlords.

  • How Much Tenant Insurance Coverage Do I Need?

    It’s important that you purchase enough coverage to fully protect all your belongings as well as give you a decent financial “cushioning” for your legal liability. Most policies will start at around $100,000 in liability insurance, but we recommend increasing that amount to at least $1 million.

    For your contents, most insurance companies will recommend at least $30,000 to $40,000 in coverage, or more if you own a larger collection of highly-valued items, such as jewelry or even artwork. Insuring high-value items can cost you a little more on your monthly premiums, but it’s worth it to have all those belongings fully insured.

  • What Does Tenant Insurance Cover?

    As mentioned above, the majority of tenant insurance policies contain coverage for the individual’s personal contents, their personal liability, and may include additional living expenses. The insured can purchase a form of coverage known as “all risk” – which insures against every peril save for those specifically excluded in the policy documents. The tenant’s personal liability is insurable up until a specific stated amount, which the insured may be able to raise for a slightly increased premium.

    Tenant insurance also covers tenant’s legal liability, which is used to protect both the tenant and landlord and absolve the tenant of any costs that may occur if they cause unintentional damages to the building itself.

    Additional living expenses coverage tends to vary in what it covers. It may what is considered “necessary living expenses” – i.e., clothing, food (takeout, restaurants, groceries), hotel costs, childcare, etc., until the insured’s unit is liveable again. It will not cover frivolous expenses, such as a stay at a 5-star hotel, or an extravagant meal at the most expensive restaurant in-town. Discuss with your broker if you are unsure of what is considered a necessary living expense.

  • What Is Tenant Insurance?

    Tenant insurance, also commonly referred to as renters insurance, is a type of insurance policy that is designed specifically for people who live in properties that they do not own – i.e., tenants. As “tenants,” these individuals are not responsible for the maintenance or for any damages/losses that occur to the physical property. They can, however, be held liable for damages or injuries to third-parties, and their personal property contained within their rented homes and not owned by the property owner is still their responsibility. To protect their personal liability and contents, tenants purchase tenant insurance, or renters insurance. Tenant insurance includes coverage for the individual’s belongings up until a specific limit against a broad range of certain perils and generally also contains a component which may insure the individual if they are ever held liable for a third-party’s injuries or property damage.

    As an added, some policies can be further customized. Some policies may contain a coverage known as “additional living expenses,” which insures the individual for any necessary expenses that they may incur during a period where their unit is unlivable due to a loss.

  • Cyber Liability Insurance

    Sometimes, accidents do happen. But no one should ever have to deal with repercussions of a cyber attack on their own. Through Cyberboxx, Excalibur Insurance now offers Cyber Liability for families and individuals that can secure your home and the way you live your life if an attack does occur.

    Cyber Liability offers coverage that protects families against numerous cyber vulnerabilities. This may include instances of identity theft, cybercrime, cyber attacks, ransomware, cyber bullying, reputation injury, and cyberstalking. The recovery process following a cyber attack can be huge and interrupt you and your family’s way of life but with the right coverage, you can have peace of mind.

  • Phishing Scams

    Phishing scams generally come in the form of seemingly legitimate emails that contain malicious attachments or links which can download viruses onto your computer. Phishing scams are the top cause of data breaches among families and businesses, however not everyone can detect what a phishing email looks like. Inform your family of what a phishing email may appear like and inform them of what to do if they receive one.

  • Secure Network

    If you work from home without having a proper security system to defend your network against hackers, you may want to set up a network that is dedicated for work purposes solely. Otherwise, ensuring your personal WiFi network has a strong password is a solid start.

  • Secure Passwords

    The simpler your passwords and the more you reuse a single password, the likelier chance you have of having to deal with hackers stealing your personal information. If you use the same password across numerous accounts, hackers can gain access to numerous accounts very quicky. Consider using a mix of upper and lower case letters, numbers, symbols, and nothing with any relevance to your personal info. If you cannot remember numerous passwords across various accounts, consider a password manager.

  • Home Security & Cyber Attacks

    The best way to mitigating your risk of cyber attacks is taking the necessary steps to preventing them. It all boils down to ensuring that your home security is sufficient enough to protect you from hackers, data breaches, and phishing scams.

  • What Should I Know About Cyber Attacks?

    Here’s the thing – cyber attacks can be sneaky, and they can impact you and your family by a variety of means. In some instances, you may already be compromised by a hacker and not know it. Surprise instances of cyber attack may come in the form of an unexpected charge to your credit card or the realization that an email with a malicious attachment has been sent to your friends by your account. Cyber attacks can do loads of damage before you even realize they have happened.

    Cyber attacks can come in many different forms, including:

    • Phishing scams – Emails that ask for sensitive information or that contain malicious attachments and/or links to fake websites
    • Account hacking – Weak passwords that allow hackers to breach your private accounts and steal information
    • Cyberbullying and cyberstalking – Targeted harassment done online
    • WiFi breach – Compromised WiFi networks

     

    During the COVID-19 pandemic, many individuals began working from home. Unfortunately, this also caused the rate of identity theft, personal cyber attacks, and ransomware to rise. There are many ways you can reduce your risk of cyber attacks.

  • What is Cyber Insurance?

    The very term “Cyber Insurance” sounds like something out of a science fiction novel. Generally, cyber insurance is something utilized by commercial enterprises to safeguard their large databases from malware and cyberattacks, but individuals are compromised by fraud, identity theft, and phishing scams every day. It’s not just businesses that are being affected.

    Excalibur Insurance presents Cyber Liability through Cyberboxx to protect individuals and families from cyber attack, cyber extortion, online fraud, data breach, and even cyber bullying. Because home insurance generally will not cover instances of cybercrime specifically, many families may need acquire their peace of mind against cyber attacks via separate coverage. Enter Cyber Liability Insurance.

  • Does home insurance cover a builders risk?

    Home insurance does not provide builder’s risk coverage. Builder’s risk insurance is a type of property insurance that covers a building or structure while it is under construction or renovation. It protects against damage or loss to the structure and materials in the construction process. If you are undertaking a construction project, it is essential to obtain builder’s risk insurance to protect your investment during the construction phase.

  • Can your home insurance provider cancel your policy?

    Yes, your policy could be cancelled (or dropped.) If you are dropped, you will not receive a renewal at the expiration date of your existing policy and you will need to look for a new provider. If this is the case, your previous provider will inform you that you will be dropped so you can look for new coverage in the meantime.

    Your insurance company can cancel you at any point (you will receive notification) due to circumstances such as misrepresentation, non-payment, or increase in risk exposure. You may be made aware of your cancellation between 10 to 30 days.

  • What won’t home insurance cover?

    Policies will vary from provider to provider but there is a number of items that will likely not be included in your policy. If you have an all-risk policy, you have coverage for all damage apart from those that your insurer mentions explicitly. Frozen pipes, wear and tear, vacant properties, and certain valuables may not have coverage.

    Certain disasters will also not be included in your home insurance coverage, such as flooding, and earthquakes. You may be eligible to purchase these as an add-on, depending on where you live. For some valuables, you can buy higher limits of coverage.

  • How do home insurance deductibles work?

    A deductible is the amount you pay out before your home insurance provider steps in to cover the rest. For instance, say you suffered a loss or damages that was covered under your home insurance policy that cost you around $4,000. If your deductible was $1,000, you would need pay that amount for any repairs or replacements before your company paid out the remaining $3,000. You can adjust your deductible amount, but the rule of thumb is that the higher your deductible, the lower your rates.

  • Will home insurance cover my jewelry?

    Maybe. Depending on the valuables you own, your home insurance may include coverage for these items up to a stated limit. If your home insurance is not enough to cover your valuables, you may purchase an additional jewelry or collectibles rider.

  • Do I need home insurance if I don’t own my home?

    Your landlord may put a clause in your lease which requires you to purchase tenant’s insurance, which covers your liability and your possessions. If not, it is still a wise idea to purchase tenant’s insurance for a small cost per month to protect everything that your landlord’s insurance will not. Your landlord may already have a policy that covers the physical structure of your unit (excluding modifications or additions) and their liability, but not your contents or liability.

  • Is home insurance mandatory in Ontario?

    No, home insurance is not mandatory in the province of Ontario. However, if you do not own your home or have a mortgage, you may be required to purchase coverage. If you live in a rental home, you may want to consider tenant’s insurance, as your landlord’s insurance will not cover your liability or possessions. If you do own your home, home insurance is not a requirement,  but is highly recommended to protect you and your family’s biggest investment.

    If you need to do repairs or rebuild following an insured loss, you can get the financial compensation you need without having to pay solely out of pocket. Your home insurance can also offer financial protection if a claim from a third party leads into a lawsuit.

  • When should I get home insurance?

    If you have a mortgage, your lender will require you to purchase home insurance before you can “close” on your new home. You will want to take the time to shop around for the best policy for your needs (or work with an expert broker like Excalibur, who can do that for you.)

    Otherwise, it’s a good idea to start looking for home insurance as soon as you’ve signed a contract to purchase a new home. This gives you time to get insured before you close.

  • How do I get lower home insurance premiums?

    Because home insurance depends on so many different things, the cost of home insurance can vary. If budget is a concern of yours, you may be looking for ways to lower your home insurance premiums. Here are a few ideas:

    • Raise your deductible
    • Install home security systems
    • Bundle your home and auto from the same insurer
    • Shop around
    • Be “claims – free”
    • Ask about discounts

  • How much does home insurance cost in Ontario?

    There is no one number that can summarize the cost of home insurance in Ontario. To get an accurate sample of how much home insurance would cost for you, apply for a quote – it’s free!

    There are several variables that impact the cost of home insurance, and every provider will underwrite risk very differently, making for a lot of variation.

    Applying for a quote with Excalibur is the best way to see how much home insurance will cost for you. Doing so only takes a few minutes of your time and can start you on your way to great coverage at the lowest rates available.

  • How are home insurance premiums calculated?

    Home insurance premiums are calculated based on your circumstances and coverage amounts.  The following factors may play into how much you will pay for your home insurance:

    • If you live close to a fire station or hydrant,
    • Your area – how high the incidence of break-ins or vandalism is where you live,
    • Your home systems: electrical, plumbing, heating, ventilation,
    • Age of your home,
    • Past claims,
    • Luxury additions: pools, trampolines, etc.,
    • If you are near a large body of water,
    • …and more.

  • How much home insurance do I need?

    It depends. Everyone’s circumstances look different. You and your family may live in a duplex, a two-story, a mansion, etc… Your insurance should reflect your needs. Home insurance is a safety net that can offer financial compensation if your home is damaged or destroyed. It can also help you if a guest or third-party should file a claim against you for unintentional bodily injury or property damage.

    Depending on the crime rates where you live, the features of your home, the size of your home, replacement value, weather, etc., your home insurance needs and premium will look very different than those of your neighbour’s. Thankfully, an Excalibur broker can work closely with you to determine your exact coverage needs so that you can choose a policy that works best for you.

  • What is the average cost of cottage insurance in Ontario?

    Your cottage insurance costs in Ontario will vary based on a number of factors, like how often you occupy your cottage, if you rent it out, how big it is, and more, so it’s difficult to lay out a single average cost. Excalibur Insurance has some figures:

    • Your average cottage insurance policy may range between $85 and $125/month.
    • Annually, your cottage insurance will average out to between $1,000 and $1,500.

    You can determine how much your cottage insurance will cost by requesting a quote from Excalibur Insurance quickly today!

  • How long can I leave my cottage unoccupied?

    It depends on your insurance provider, but generally a cottage is “intended” to be unoccupied for extended periods of time, like during the winter. You may be required to install various safety features, like burglar alarms or smoke detectors, or even drop by once in a while to ensure everything is up to par. Depending on your frequency of use, you may want to discuss with your insurance broker to see what your cottage insurance policy states.

  • Seasonal Property Insurance: A Breakdown

    Seasonal property or seasonal home insurance is financial protection for your cottage and any outdoor structures your family may own from the risks they face, such as vandalism, fire, and more. Your cottage insurance also includes contents insurance for the belongings stored inside your seasonal dwelling and liability coverage. Just think of what might happen if your cottage were to catch fire and sustain serious damages without the right cottage insurance. Could you afford to pay for all your losses alone?

    Your family doesn’t have to worry. An Excalibur broker gets to know (and should know!) your situation, the total rebuild for your cottage, what your coverage needs look like, and which insurance companies best reflect your requirements and budget.
    Your average cottage insurance policy includes protection for the following items –

    Your Cottage Building

    While the risks you have coverage for will depend on the type of policy you have purchased, your policy will include coverage for your cottage building as well as any outbuildings against either the risks as stated in your policy (if you have named perils coverage) or everything aside from any exclusions listed (if you have all perils/risks coverage.) If you have the former, i.e. “the basic policy,” you may have the option of adding other coverages to expand your existing protection.

    Personal Items

    Your cottage insurance includes protection for any personal items stowed in your seasonal dwelling up until your stated limits. If you own any items of higher value (jewelry, fur coats, collectibles, antiques), there is a chance you will need to increase your limits or purchase a “floater” to cover these belongings.

    Seasonal Property Liability

    Liability coverage for your cottage is just as important as it is for your home. This is especially true if you own any recreational items like ATVs, boats, snowmobiles, etc., as these items pose additional risks to you and any guests visiting your cottage. The liability portion of your cottage insurance should be enough to protect you and your family against cases of damages or accidental injury while using your recreational vehicles or if there is an accident while visiting your cottage. Consider the weight of your potential legal fees, liability claims and judgements. If these exceed your limits, you may be forced to pay out of pocket for the difference.

    Seasonal Home Insurance Endorsements

    You may be eligible to purchase additional cottage insurance coverages which can supplement your existing insurance against a number of different exposures. Some of the coverages that may be available to you can include:

    Watercraft Coverage

    If you own any boats or other water vehicles, your cottage insurance may not already include coverage for them. You may be required to purchase add-on insurance.

    ATV Coverage

    If you own any ATVs or off-road vehicles, you may be required to purchase add-on insurance so that they are covered.

    Wildlife Damage

    Damage by raccoons, squirrels, and bears is not always included with your cottage insurance. Thankfully, you can purchase add-on coverage so that you are protected against any losses due to wildlife.

    Excalibur’s cottage insurance brokers can do the work for you and suggest protection options for your seasonal property. With our expertise and knowledge, we can help guide you towards making the right decisions for you and your family’s peace of mind.

  • What happens if my EV is damaged by an electric charging station malfunction?

    Generally, if you had comprehensive coverage, your electric vehicle may be covered. This would be treated similarly to any other non-collision damage event.

  • Are there any government incentives for insuring electric vehicles in Ontario?

    Currently, there are no specific insurance incentives for electric vehicles in Ontario. However, there is a program known as the Incentives for Zero-Emissions Vehicles (iZEV) in Canada, as well as tax write-offs for businesses. The iZEV program essentially offers point-of-sale incentives for customers who either purchase or lease a zero-emission vehicle. Two incentives exist – one for $5,000 for battery-electric, longer-range plug-in hybrid vehicles, and another for up to $2,500 for shorter-range plug-in hybrid electric vehicles. To be eligible for the program, vehicles must meet all of Canada’s Motor Vehicle Safety Standards, be meant for use on roads, highways, and public streets, and have at least four functioning wheels and be able to drive on highways.

  • Will installing a home charging station affect my insurance premiums?

    While installing a home charging station will do nothing to impact your electric vehicle insurance premiums, it may impact your home insurance. Make sure to inform your insurer about any plans you have to add a home charging station to ensure you have adequate protection in place should anything happen.

  • Why do electric vehicles cost more to insure than their gas-powered alternatives?

    Take, for example, the Ford Fusion. Where a traditional gas-powered model might cost you anywhere between $1,600-$1,900/year to insure (on average) its electric-powered alternative may cost you upwards of $2,000. Some of the reasons why electric vehicles cost more to insure is due to the higher cost for replacement parts, the cost to replace damaged electric vehicle batteries, and the higher expense for repairs due to specialized training required to fix electric vehicles.

  • What is the average cost of electric vehicle insurance?

    Electric vehicle insurance costs range astronomically due to the fact that each electric vehicle is priced vastly different. You may find that you could end up paying anywhere between $1,500 and $4,600/year for your electric car insurance in Ontario, depending on various factors. These figures, however, are only estimates and we advise you to get a quote to gauge a more accurate figure for your electric car’s insurance premiums.

  • What is the cheapest electric vehicle to insure?

    Currently, the cheapest electric vehicles to insure are the Nissan Leaf and the Kia Soul EV. However, this may stand to change as electric vehicles evolve, gain higher safety ratings, and become more popular on the roads. If budget is a top priority for you, we advise keeping insurance rates in mind when shopping for your next electric vehicle.

  • Are my EVs batteries covered if they’re damaged in an accident?

    Typically, if you have collision coverage or DCDP coverage in a not at-fault accident, your EV’s batteries will be covered if they are damaged in an accident. If your EVs batteries were damaged or gave out due to your neglect or lack of maintenance, however, they probably wouldn’t be covered.

  • Are there discounts for driving an electric vehicle?

    Yes, some insurers do offer discounts if you drive an electric vehicle, to incentivize you to make more green choices. You may want to check with your insurer about potential discounts for “driving green.” Another green way to potentially reduce your insurance costs is to go paperless!

  • Do I need to buy special insurance for my electrical vehicle (EV) in Ontario?

    Electric car insurance works the same way as traditional car insurance does. Sure, EVs may need special parts and services, but that doesn’t mean their insurance works differently. Insurance may be costlier in some instances, but Ontario’s mandatory automobile insurance laws still require EVs to be insured with the same level of protection as any vehicle on the road.

  • Are electric vehicles more expensive to insure than traditional vehicles in Ontario?

    While the cost of electric car insurance is not guaranteed to more expensive than traditional vehicle insurance, you may find your rates slightly higher due to the more costly nature of electric vehicles. EVs often have expensive, tech-savvy features, and may have a higher market value than their gas-powered alternatives. Rates still vary based on your common car insurance factors, like usage, driver’s record, replacement cost, commute distance, postal code, and so forth.

  • What’s The Bottom Line?

    Sometimes your basic auto insurance just isn’t enough. Ontario requires that drivers purchase a base minimum of liability per provincial requirements but that still leaves many vehicle owners underinsured when their cars and trucks suffer from depreciation over the years. If a no-fault accident was to take place where your vehicle was written-off, what would you do? Gap insurance is great, but Optiom Prime can protect your family’s prized investment when you need it most.
    Depreciation can decrease your vehicle’s value up to 20% in the first year and 15% per year following. That can be a huge financial impact without having the right coverage. Optiom can mend the gap and give you and your family the peace of mind you deserve.

    Optiom Prime is underwritten by underwriters at Lloyd’s and administered by Optiom Prime Inc.

  • What is Diminished Vehicle Value Benefit?

    If you are involved in a no-fault accident, your Optiom Prime will pay a fixed amount if the necessary repairs exceed over 25% of the declared value of the vehicle (when the accident took place.) The vehicle’s value at the inception of your policy will determine the fixed payout amount (ex: if the vehicle value is between $5,000-$10,000, the guaranteed payout will be $1,000, and so on.)

  • What is the Key Fob Reimbursement Benefit?

    Optiom Prime can reimburse you the cost to replace your vehicle’s key fob if you lost it. This includes up to $500 if vehicle’s keys are stolen or lost.

  • What is the Rental Vehicle Reimbursement Benefit?

    If you have rental vehicle coverage provided by your primary auto insurance provider which ends before your vehicle can be replaced or repaired, Optiom Prime can reimburse you for the continual rental vehicle costs until the repairs/replacement is complete.

  • Partial Loss Deductible Reimbursement Benefit

    If you need to pay out for a deductible on your primary auto insurance, Optiom Prime can reimburse you if there is a loss where your vehicle is repairable. Optiom Prime can pay up to $500 of your deductible if your vehicle can be repaired following an insured loss.

  • Should I buy gap insurance from a dealer?

    Some dealers may offer the chance to purchase gap insurance when you buy or lease a new vehicle, but it might pay to assess whether the price is worth it next to what an insurance company may ask for traditionally. Moreover, an insurance broker will know your circumstances and your needs. In the end, it’s your decision, but don’t leap to buy if you have not already checked out all your options.

    Optiom Prime is special, and Excalibur Insurance is one of very few insurance brokers in Ontario that offers this protection if your vehicle is written off in a collision or accident. You can request a quote with Excalibur and start protecting your family budget today.

  • How much does gap insurance cost in Ontario?

    Typically, gap insurance comes relatively inexpensive and is purchased when you buy your new vehicle from the dealership. Your costs will vary according to the typical factors such as purchase price of the vehicle and expected usage of the vehicle.

    Optiom Prime, on the other hand, may cost between $25 and $35 per month and covers the purchase price of your vehicle, not just the remaining difference between the depreciated value of your vehicle and your current loan.

  • Is gap insurance worth it?

    It depends. If you owe more than what your vehicle is worth at any point, gap insurance is likely worth your money. This is especially true if you have put down anything less than 20% and having gap insurance for the first few years that you own your car is probably a good idea. In the event that your car is ruined, you will not have to pay out-of-pocket for the difference between your actual cash value and how much you owe to your lender.

    Optiom goes above and beyond as it ensures the purchase price – not just the difference between the actual cash value of your mini van and your standing loan amount. While gap insurance can certainly help, Optiom helps you acquire a far more reasonable payout.

  • What’s the difference between Optiom vs Gap Insurance

    Option Prime and gap insurance sound very similar on paper, but Optiom is far superior in terms of what it can cover. For example, gap insurance can provide coverage if your mini van has a loan that is greater than its value due to depreciation as a result of high mileage and interior damage done by your kids. Optiom Prime ensures you get your purchase price in the event of a loss, and not just the difference between the loan amount and ACV of your mini van.

  • How does Optiom work?

    Your primary auto insurance carrier will pay the market value of your car as part of the mandatory comprehensive and collision coverage you would need to carry. Optiom Prime is an additional policy, although not mandatory, it will pay the difference to ensure you get the amount you paid if your vehicle is written off in an accident.

    If you currently have lease or loan obligations and your vehicle is a total loss, Optiom Prime will contribute to that too. Like other endorsements, Optiom Prime is an additional purchase that supplements your existing insurance. You may also add optional coverage (for an additional premium) for new and used vehicles.

  • Why Optiom Prime?

    Because cars lose value overtime. You and your family likely treasure your vehicle, and you’ve used it plenty over the years. It’s seen a lot of soccer practices, trips to and from work and school, roadtrips, and so on. Unfortunately, as all things do, your vehicle will age and wear and with newer models on the market, it just won’t be worth the same as it was when you bought it.

    Due to this, many auto insurance policyholders find themselves “underwater.” When their vehicle is written off in an accident, they won’t receive a settlement in line with the vehicle’s current financed value. Instead, they will only get the current market value – which can end up costing the policy holder additional cash out of pocket in the event of a loss.

    Optiom Prime coverage premiums are locked-in when you purchase a policy, and there is a guarantee for no re-qualifications (for your vehicle) or increases as long as you maintain your insurance. You will continue to be eligible for coverage for up to 7 years for newly purchased vehicles and up to 5 years for used ones.

  • Market Value Vs Optiom Prime Payout

    Put simply, take your $40,000 vehicle. This was the market value at the time it was purchased. Over time, that value changes – regardless of how much you paid initially. At the time of loss, your vehicle has about $18,000 of market value. Optiom Prime, however, will value your vehicle at the original purchase price of $40,000 and would offset the loss by paying you the $22,000 remaining.

  • Why You Should Purchase Gap Insurance

    Gap insurance in Canada is also sometimes referred to as guaranteed auto protection. It reimburses a vehicle owner if the auto insurance payout is less than the outstanding lease/loan amount. Gap insurance is especially important for those people who have put no money down for their vehicle and opted for a long payoff period.

    What does gap insurance cover? How does gap insurance work? It might be easier explained with an example.

    Imagine this scenario: you own a vehicle that has been completely wrecked and written off as a total loss. You are then owed the full value of that current vehicle. As is the case with any average vehicle, this car is now worth 20% less than what it was worth a year ago when you purchased it. If your collision insurance pays out $18,000 but you owe a total loan of $20,000, you’re in the hole for that remaining shortfall of $2,000.

    If you had gap insurance, your gap payout would be that $2,000 shortfall. This means you won’t be left on the hook if your vehicle was written off in a wreck or collision.

    Gap insurance is great, but it provides coverage only for the difference between the loan amount and actual cash value or “ACV” of your vehicle in the event of a loss. With Optiom, you purchase an insured limit that is similar to the purchase price of your vehicle. Even years later, you can still receive your purchase price back should you suffer a loss.

  • What is Optiom Prime?

    If you bought your vehicle new, Optiom Prime will reimburse your written-off vehicle for the difference between your primary insurance carrier’s market value payout and the amount the vehicle was worth when you purchased it for up to seven years after the fact. If you bought your vehicle used, Optiom Prime will reimburse you for up to five years after purchased. This includes any HST tacked on.

    Is it worth the money to buy it? If you believe that you currently owe more money on a vehicle than your auto policy would pay out in the event of a claim, Optiom is worth the buy. Optiom is a little like guaranteed auto protection. It reimburses a vehicle owner if the auto insurance payout is less than the outstanding lease/loan amount. This is especially important for those people who have put no money down for their vehicle and opted for a long payoff period.

    In a way, Optiom is similar to gap insurance.

  • Optiom Prime: Turbocharging Your Auto Insurance

    Imagine this: you buy a brand-new vehicle for $40,000 and take it home. You and your family use this vehicle daily for over four years, and then it gets in an accident. To your dismay, your vehicle is totalled. Luckily, you have auto insurance coverage that will reimburse you. Right?

    Not exactly. Yes, your auto insurance carrier may write you a small cheque for the vehicle that was written-off, but only as much as it was worth (the depreciated value) at the time of the accident.

    That’s where Optiom Prime comes in. Optiom Prime will reimburse you for what you paid, unlike your average auto insurance policy. Here’s how it works.

  • What do I do if I disagree with my insurance provider’s assessment of fault?

    If you believe your insurance provider’s assessment of fault is dissatisfactory and doesn’t reflect what happened, you can call up the claims adjuster who was handling your case. See which rule within the Fault Determination Rules was applied in your case.

    If you can, offer any new information to your insurance company’s attention. They may revise or reconsider their decision only if relevant information to the case is provided.

    If your insurance company refuses to revise the decision or if you still disagree, you can reach out to your insurance company’s complaint officer and be guided through the company’s complaint-handling protocol.

  • How does my insurance provider determine whether I am at-fault in an accident?

    Whether partially or fully, there is always fault assigned – even in provinces that follow the no-fault rules. Insurance companies gauge fault to determine an individual’s premium percentage increase, if any. The more at-fault incidents or partially at fault accidents you’re involved in, the more likely you are to be labelled a high-risk driver.

    Insurance companies use what is known as Fault Determination Rules, which adhere to regulations laid out by the province’s Insurance Act. Drivers can be assigned fault on a percentage basis, so anywhere from 0% at-fault to 100% at-fault.

    You can find Ontario’s Fault Determination Rules here: https://www.ontario.ca/laws/regulation/900668

  • What are the best high-risk auto insurance companies?

    Not every auto insurance company offers high-risk insurance, but Excalibur works with a few of the best high-risk auto insurance providers around.

    Jevco Insurance Company provides high-risk insurance for drivers who are finding it difficult to acquire insurance in Ontario through standard companies. They offer customizable policies that recognize the different experiences, driving habits, and characteristics of each driver.

    Echelon provides non-standard automobile insurance in numerous provinces throughout Canada, including Ontario, Quebec, New Brunswick, PEI, and Nova Scotia, for those who are unable to obtain insurance from standard carriers due to license suspensions, driving infractions, and more.

    Coachman Insurance Company’s insurance programs are specially designed to provide auto insurance to rehabilitating drivers. They recognize the need to drive and repair a driving record by building up a consistent history again. They offer a second chance at affordable insurance.

  • Why is high-risk insurance so expensive?

    When insurance companies calculate your premiums, they’re virtually calculating your likelihood of being involved in an accident or making a claim. If you are statistically more likely to make a claim, your insurance rates will reflect that. High-risk drivers are perceived as more likely to make a claim – riskier (i.e., “high risk”) – and therefore will be charged higher rates. Car insurance can be much more expensive for those who have had numerous recent claims and/or driving violations, like at-fault accidents, speeding tickets, and DUIs.

  • How much is high-risk insurance in Ontario?

    Unfortunately, high-risk insurance in Ontario tends to be more expensive than your average auto insurance policy. There’s really no way around it. Depending on your risk profile, you might be paying anywhere between 25% to 250% more than your average driver.

  • How long will I be considered a high-risk driver?

    You will no longer be considered a high-risk driver once some of your tickets fall off your record. Most traffic tickets, suspensions, or policy cancellations, etc. will be removed from your record after three years. At-fault incidents and criminal convictions, however, can remain on your record and keep you labelled a high-risk driver for up to six years.

  • Why would you need high-risk auto insurance?

    To remain insured. Few standard auto insurance providers will insure high-risk drivers, meaning you’ll need to place your policy with a non standard insurance company through an experienced high risk  insurance broker. High-risk insurance does typically cost more, but the high-risk label isn’t permanent.

  • How does high-risk insurance work?

    High-risk insurance functions similarly to standard auto insurance, in that it covers your vehicle and supplies the necessary coverage to render your vehicle “road-legal” but three criteria may differentiate it from your typical policy. One, your insurance will likely cost more. Two, your payment options will be reduced (because many drivers are high-risk due to cancellations for non-payment), and three: insurance coverage will be limited. Your liability limits may be capped, and you may be required to pay higher deductibles in the event of a claim. You will be stuck with having to carry high-risk auto insurance until your high-risk label comes down. This, unfortunately, is only done with time.

  • What is high-risk or non-standard auto insurance?

    In insurance, high-risk means that your risk appetite is higher than that of the average driver’s. This may be because you are a young driver with a poor driving record or little driving experience, because you have been involved in too many at-fault accidents, you have a history of being cancelled due to non-payment, you have had a DUI charge, or other risk-related characteristics. High-risk drivers do not qualify for standard auto insurance and so, in order to remain insured, must acquire “non-standard auto insurance” (or high-risk auto insurance) which may differentiate from your standard policy in a number of ways.

  • Do I need to buy travel trailer insurance?

    Because travel trailers are towed behind your vehicle and do not operate on their own, they do not require their own auto policy and it is not mandatory to purchase travel trailer insurance. However, they do not have coverage under your car insurance for damages or collisions and it is recommended you purchase a proper travel trailer insurance policy to have peace of mind. Recreational vehicles that can be driven and operate on public roads (like motorhomes) may require insurance to be used.

  • What is the average cost of trailer insurance?

    Because you and your travel trailer are unique, there is no single cost that accounts for all the travel trailer insurance policies out there. However, you can compare quotes with Excalibur Insurance’s Trailer Quoting Widget, in partnership with Aviva Insurance, to have a better idea of how much your travel trailer insurance will cost. Here are some average figures:

    • Per month, your travel trailer insurance may cost between $25 and $40.
    • This averages out to around between $300 and $500 annually.

    With our quoting widget, getting a travel trailer insurance quote is quicker and allows you to get on with your next family adventure faster.

  • What are the different types of travel trailers?

    Trailer is a broad term used to encompass a variety of different trailer types. These may include travel trailers, which attach to your car or truck by a hitch. There are fifth wheel trailers, which have more space than your average trailer, are more stable, and typically the safest. Camper trailers are similar and towed behind your vehicle/can be interchangeably used to refer to travel trailers. Horse trailers are used to pull horses or other livestock safely behind a vehicle. Finally, there are also stationary trailers which may be insured like travel trailers apart from the collision component (as they do not move.)

  • Is trailer insurance covered by my car insurance policy?

    Your car insurance may offer liability coverage for your trailer, but this is likely to apply only when your trailer is hitched to your car. Any physical damages, theft, or vandalism to the physical structure of your trailer or to its contents may not have coverage. For this, you will need to purchase separate travel trailer insurance.

  • What is a high risk driver?

    Being a high-risk driver typically means that insurance companies consider you more likely to be involved in an accident or have a claim compared to the average driver. Several factors can contribute to being classified as a high-risk driver, including:

    • Driving Record: If you have a history of traffic violations, such as speeding tickets, distracted driving, impaired driving, or at-fault accidents, insurance companies will view you as a high-risk driver.
    • Young Age or Inexperience: Younger drivers, especially teenagers, are often considered high-risk due to their lack of driving experience. Insurance companies may also classify individuals with limited driving experience as high-risk.
    • Driving Habits: If you have a history of frequent insurance claims or driving long distances regularly, insurers may consider you a higher risk.
    • Previous Insurance Claims: If you have a history of filing multiple insurance claims, regardless of fault, insurance companies will view you as high-risk.
    • Lapse in coverage: If you have gone without car insurance for a period of time, it can be harder to get affordable coverage again.
      Being classified as a high-risk driver typically results in higher insurance premiums compared to other drivers. However, there are still insurance options available for high-risk drivers, including specialized high-risk insurance companies or government-run insurance pools.

    These options may offer coverage at higher rates but can help ensure that you are still legally insured to drive. Improving your driving record and maintaining a clean driving history, will reduce your risk profile over time and lower your insurance premiums.

  • What does full coverage mean?

    Full coverage typically refers to an auto insurance policy that includes a combination of liability coverage, comprehensive coverage and collision coverage.

    • Liability coverage: This covers bodily injury and property damage that you may cause to others in an accident for which you are deemed at fault. It typically includes both bodily injury liability (which covers medical expenses, lost wages, and legal fees) and property damage liability (which covers repairs or replacement of the other party’s vehicle or property).
    • Comprehensive coverage: This covers damage to your vehicle caused by incidents other than a collision, such as theft, windstorm, fire, vandalism, falling objects, and hitting an animal.
    • Collision coverage: This covers damage to your own vehicle when it is involved in a collision with another vehicle or a stationary object.

    Keep in mind that the specifics of what “full coverage” entails can vary depending on the insurance company and the policy options you select. Additionally, full coverage doesn’t necessarily mean you’re covered for every possible scenario; there will always be limitations and exclusions in your policy.

  • Will auto insurance cover…?:

    An Unlicensed Driver – If you do not have a driver’s license, you cannot purchase auto insurance in Ontario.

    Stolen Items – If your vehicle is broken into and the thief makes off with your backpack, GPS, laptop, or other items, your claim is not covered by your auto insurance. Since property was stolen from your vehicle, your claim would fall under your home or property insurance.

    Windshield Replacement – Comprehensive insurance coverage will replace a broken windshield, subject to your deductible .

    Vandalism – Comprehensive insurance coverage will cover vandalism to your vehicle.

    Engine Failure – No, engine failure is not covered by your auto insurance policy, because it is often caused by improper maintenance of your vehicle.

    Pre-Existing Damage – Pre-existing damage to your vehicle is not covered by your auto insurance policy.

    Medical Bills – The Accident Benefits portion of your auto insurance policy will cover medical bills, up-to a specific limit, in the event you are injured in a car accident.

    Hail Damage – Comprehensive insurance coverage will repair your vehicle in the event of hail damage.

  • Why is auto insurance so expensive in Ontario?

    Auto insurance rates tend to be higher in the province of Ontario. Why? Unfortunately, this is largely due to rising instances of insurance fraud, poor weather, and distracted driving cases that have risen in the last couple of years in the province. Moreover, vehicles are more expensive , vehicle repairs are more expensive , and Ontario has over 8 million licensed drivers.

    If it seems like a losing battle, try not to be overwhelmed! Excalibur can offer you many ways to save on your auto insurance rates, like raising your deductible, opting for public transport where possible, and ensuring you are receiving all of the eligible discounts.

  • Can auto insurance companies raise rates?

    Each insurance company sets their rates based on their loss experience and the make-up of their customers, including their ages, driving experience, and operating region. Since Excalibur Insurance is a brokerage, we are not responsible for setting any of the rates – we simply let customers know what rates are available to them in the market.

  • Can auto insurance be cancelled at any time?

    Yes, auto insurance can be cancelled at any time. However, depending on your insurance company, you may still have to pay a portion of your premium based on how much time is left on your policy. Additionally, your insurance company can also cancel you or choose not to offer you a renewal, if you have multiple accidents, tickets, or cancellations for non-pay. Speak with a broker to determine which insurance companies will write you depending on your insurance history.

  • How are auto insurance premiums calculated?

    The cost of auto insurance premiums are calculated based on your age, gender, convictions, driving history, years of experience, distance of your commute, model of your vehicle, operating region, and more. Since there is a lot that goes into an insurance quote, premiums can change dramatically from person-to-person.

  • What is an auto insurance deductible?

    A deductible is the amount you pay out of pocket before the insurance company will begin to cover the cost of repairs. For example, if your deducible is $1000 and you get in an accident that cost $7500 to repair. You would pay the first $1000 to the repair shop, and your insurance would cover the remaining $6500.

  • How much auto insurance coverage do I need in Ontario?

    Every auto policy in Ontario will likely provide a minimum of $200,000 for liability coverage in Ontario, if such a claim should ever arise. This is the bare minimum that the provincial minimum coverage requirements allow. However, due to the severity of lawsuits and their frequency, many insurance carriers will recommend you carry much higher coverage limits. Discuss with your broker about what your liability limits should be.

  • Is auto insurance in Ontario mandatory?

    In Ontario, all drivers are required to have liability coverage. Liability coverage provides protection for bodily injury or property damage as a result of the operation of an automobile. Failing to have insurance coverage leaves you liable for any damages should an at-fault accident occur. Additionally, drivers who can’t produce proof of insurance could be faced with fines, vehicle seizure, license suspension, and criminal charges.

  • Why are my auto insurance rates going up?

    Insurance premiums increase when the insurance industry experiences a period of time where they pay out more in claims than they receive in premiums. This is known as a “hard market.” You can learn more about why insurance premiums go up by checking out our YouTube video titled “Why Are My Insurance Rates Going Up?” or our blog titled “Why Did My Insurance Go Up?”

  • When should I get auto insurance?

    If you are not planning on buying your own vehicle, your parents can add you to their insurance policy as an occasional driver of their vehicle. If you are planning to buy a vehicle, you need get auto insurance the same day. When you’re shopping around for a new vehicle, you can contact a broker to compare quotes on different models to find the cheapest premium for you. Once you’ve purchased a vehicle, insurance coverage is legally required before you’re able to pick up your new car from the dealership.

  • Which auto insurance company is the best?

    There are dozens of car insurance companies across Ontario, that all offer different rates for auto insurance. Some companies offer discounts for young drivers, while others prioritize experience and an accident-free driving record. When you find an insurance company that goes above and beyond to meet your unique needs, it’s truly something to rave about. In fact, many people have found that same feeling about The Excalibur Insurance Group. To date, we’ve received over 400 reviews from our customers: https://excaliburinsurance.ca/testimonials/

  • How much does auto insurance cost in Ontario?

    Technically, there is no single overarching number that sums up the cost of auto insurance for every driver in Ontario. Your auto insurance rates will depend upon a few different variables, such as the make/model of the car you drive, the drivers listed on your policy, and the length of your average commute, to name a few. You can expect to pay more if you have young and experienced drivers named on your policy, drive long distances during high traffic times, and/or have experienced an accident in the past.

    Excalibur has provided the following figures for you to get a better idea of how much auto insurance can cost in Ontario:

    • You can expect to pay an average of $1,500 year for auto insurance in Ontario.
    • This means you may be paying anywhere between $125 and $150 month for your auto insurance policy.

  • How do I compare auto insurance quotes in Ontario?

    You could call up your prospective insurance companies and compare quotes directly, but that could take a lot of time out of your day and no one wants to spend hours of their day on the phone. A brokerage – like Excalibur – has access to many of the best auto insurance companies on the market and can compare rates for you with the same requirements in mind. This can be done quickly and hassle-free with Excalibur.

  • Which auto insurance policy is best for me?

    Your insurance needs are different than those of your neighbour’s, so you need an insurance broker that recognizes that. An Excalibur Insurance broker will ask you all the questions needed to guarantee that you have the right coverage and the best auto insurance policy for your needs. Additionally, your broker will walk you through the coverage options available to you, including comprehensive coverage, collision coverage, and increased liability limits. Once you determine your optimal coverage plan, your broker can help you find the best coverage at the best price.