Insurance Frequently Asked Questions

At times insurance can be confusing – often leading to clients playing a lively game of 50 Questions with their broker. That said, we’ve answered some of the most frequently asked questions (FAQs) that we receive from customers on a weekly basis.

Q – Can you get car insurance without a license or with a suspended licence?

A – No. You must have a valid driver’s license to purchase car insurance. In both of these cases, your insurance broker would not be able to pull your driver’s abstract (since you don’t have a licence or it is suspended) to finalize your quote and issue an insurance policy.

Q – Does insurance cover a stolen car?

A – If your auto insurance policy includes comprehensive coverage or specified perils coverage, you will be reimbursed as per the assessed value of your vehicle. However, if you only have collision coverage on your auto policy, your insurance will not cover the cost of a stolen car.

 Q – Can I get insurance without a car, or on a car I don’t own yet?

A – If you are in the process of purchasing a car you can begin looking for insurance. However, your policy cannot be finalized until you obtain the ownership for the vehicle.

Q – Can insurance companies deny coverage?

A – Insurance companies cannot deny you coverage after an accident or property insurance loss. However, your insurance can be voided if you lie to your broker or you fail to disclose major risks associated with your home or auto policy.

Q – Can you cancel insurance at any time?

A – Typically insurance companies allow you to cancel your policy at any time. In many cases, any unused premium will be refunded to you, but sometimes your insurance company may charge you a fee for cancelling in the middle of your policy term.

Q – Will 2, 3, 4 demerit points affect my insurance?

A – Insurance companies will consider the severity and number of tickets on your licence in order to calculate the best insurance rate that they can offer you. Depending on these factors your insurance rates may experience an increase.

Q – Is a 2 door vehicle more expensive to insure?

A – Generally the answer to this question is yes, but there are exceptions to every rule. Typically the rates are calculated based on repair costs – and 2 doors vehicles are often more expensive to repair than 4 door vehicles. Other factors may also come into play if it is rated as a sports car, as many 2 door vehicles tend to be.

Q – How does an insurance deductible work?

A – An insurance deductible is the amount that you agree to pay in the event that you have a loss and must file a claim. When you first set up your insurance policy your broker will ask you how much you want your deductible to be. Typically, deductibles are $500 or $1,000. After you pay your deductible, your insurance company will cover the remaining fees up to your policy limit.

Q – How does an insurance claim work?

A – After a car accident, home fire, property theft or other form of loss – you are required to contact your insurance company to report the damage. That said, you do not have to file a claim if you would rather pay out of pocket for the damages. If you feel the damage is substantial enough and want to file a claim, you will have to first pay your insurance deductible before the insurance company will cover the remaining value up to your policy limit.

Have another question you want answered? Contact one of our Excalibur Defenders at 1-888-298-7343, email us – or stop by one of our office locations.