I recently had an automobile accident (not my fault) when a transport truck backed into me. I was obliged to report it to the Police Reporting Station and also to my Insurance Company. I don't know if you are like me but I always get panicky when talking to my insurance agent. All I can visualize is my premiums going up. However, this was a pleasant surprise when they told me since the accident was not my fault I would not suffer an increase in premiums.
For many months now I have been trying to get an interview with an insurance agent, and this opened the door for me. Mr. Burke Neale, CIP, of McFarlan Rowlands Insurance Brokers, who has his office at 1 Main Street W. Norwich, Ont. NOJ lPO
Phone (519) 863-3024 or 1-800-563-7093 was kind enough to give me an interview.
Q. Where do seniors rank in terms of the risk factor?
A. Between 50 and 70 their risk factor is the lowest, after 70 the risk factor increases based on accident ratio in that age group.
Q. How is senior's insurance determined once they are out of the work force and no longer use their car for business?.
A. l) Insurance should be reduced when car is long longer used for business.
2) Retiree discount will be in place unless you re-enter the work force.
Q. What factors affect insurance increases?
A. Convictions pertaining to speeding, tickets, purchase of a new car, number of accidents and where you live in the Province or the City.
Q. Each person has a rating of 0 to 9 starts. Where does this rating appear on your policy?
A. On policy declaration page or call broker and ask for rating. A 9 star rating will be affected by accidents. One accident will drop you to five stars, two accidents will drop you to 0 stars.
Q. How long does an accident stay on your record?
A. Approximately six years.
Q. Why does my insurance premium not go down as my car gets older?
A. The only part of your insurance that can be reduced is on collision. Other factors such as liability and accident benefits have been increasing more than the collision part has been reduced.
Q. Is there any relief in sight for car owners?
A. As your policy comes due, your insurance company should reduce the rate by 10% as of August, 2004.
Q. Would you advise your clients to shop around?
A. By all means, different insurance companies have different programmes and rules.
Q. I have heard the rumour that some brokers push consumers to deal with certain insurance companies because they receive financial advantages. What would you say to that?
A. Brokers receive a 'contingent profit commission' based on profit. There is no other financial consideration involved. Ontario regulations prohibit insurance brokers from realizing any unwarranted incentives.
Q. What advice would you give to seniors who are confused about insurance rates?
A. You should never be afraid to question your broker with regards to your policy. Review your policy and make a list of questions to ask. You must keep your broker informed if you make lifestyle changes e.g. move, change cars, not in the work force etc.
You can also go in person to talk to your customer service broker.
I hope this information is helpful to my readers and many thanks to Burke Neale for giving me his time to answer my questions. Bye for now and drive safely.
Dorothy is over 65 years old, lives in London, Ontario and is a freelance writer specializing in senior's issues. To contact Dorothy
Please write to the London Free Press, 369 York Street, London, Ont.
No reproduction of this column is permitted without the consent of the writer.
Please email ideas@senioryears.com with any comments, questions or suggestions for Dorothy.
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