Transcript

Hi again everyone, Bruce Mackay from Mackay Insurance.

You know, Covid-19 has impacted us in many ways. One of which, for business owners, is the shutdown of their business. For your buildings, you do need to check on them, and we recommend that you check on them daily.

There's a few things that you should be checking on:

First, check your sump pump. Make sure it's in working order. Also check your water systems, making sure if you have any sprinkler systems, fire extinguisers, or your plumbing - check for leaks.

Second, check on your heating and thermostat. Make sure your building is properly maintained.

Third, check on your roof. You want to make sure that there's not any missing shingles or any leaks.

Fourth, check on your property. It's a good practice to check it daily.

Also, if you're a homeowner, and there's been a change in your home or if you've had a rental home and it's now vacant. You do need to let your insurance company know. These are things that sometimes people forget. We recommend that if you have any changed use of your building, that you contact us as soon as possible.

These are trying times, and we're here to help. If you need any more information, please contact your broker or give us a call at 613-966-5740. You can also email us at info@mackayinsurance.com.

Please be safe.

Transcript

They say April showers bring May flowers, but they also bring floods, and claims.

Hi folks, Bruce Mackay here with a few tips to keep your basement dry.

First, check your downspouts and your eavestroughs. Over the winter, lots of things could have gotten into them and blocked them. Make sure you check the bottom and maybe get an extension that will take the water away from the house.

Second, if you're spending a lot more time at home, perhaps putting this on your project or to do list for the spring is to make sure the grading is pulling away from the house. So as water comes off your roof it doesn't go back towards the house, but goes away from the house.

Third, check your sump pump. Sump pumps that haven't worked in a while, you want to make sure that they're in good working condition. As well, we get storms in April and should the power go out, you need to look into getting a battery backup system. The life span can be anywhere from ten to fifteen years on a sump pump, and if yours is older than that, perhaps replacing it and getting a battery backup system in place would be a good idea.

For all these and more tips, contact your broker. We are working away from the office right now. You can contact us by phone at 613-966-5740, leave a voicemail and we'll call you back, or by email at info@mackayinsurance.com.

Please be safe. We'll see you next week.

Mackay Insurance Update April 9 - From Bruce Mackay

Video Transcript

Hi There. Thanks for joining me today.

As you may or may not be able to tell. I'm coming to you from my home office. This is my living room.

Due to Covid-19, to protect most of our staff, we have moved them to working from home.

While our offices at 35 Jim Kimmett Blvd in Napanee and 211 Dundas St. East in Belleville are temporarily closed, we are definitely open for business.

You can contact us by phone at 613-966-5740 - you'll likely get voicemail, but we will likely call you right back.

Also, you can email us (see our staff list here).

Over the next week we'll be relaunching our app and customer portal. You can go online and get your documentation as well as your liability slips directly. It's a self-serve option and it'll be really slick when it's launched.

As well, we just launched something on our website where you can pay your policy by credit card (link). As well you can send your e-transfer instead of coming in to the office. You can e-transfer to us at liz@mackayinsurance.com.

From all of my staff, we want to wish you well, we want to wish you safety, during these challenging times. And we will be in touch with more announcements in the coming weeks.

Be safe everyone.

Sometimes it seems you can buy just about anything online today.

Car insurance is no exception.

It has never been easier than it is today to shop for car insurance online in Canada.

But in exchange for the convenience of doing your research from home, you give up some potential cost savers that come with shopping over the phone or in person.

Plus, the world wide web is like the last Wild West frontier for shoppers – if you don’t know how to tell if an online auto insurer is legitimate, you might get taken for the wrong kind of ride.

In this post, we outline our tips for shopping effectively for car insurance online here in Ontario. Of course, you can always contact us directly for an insurance quote. We’re happy to do the shopping for you and find the best rate available for you from all of our vendors.

1. Get all your auto insurance needs down on paper

This may not be something you feel confident to answer yourself. But you can at least familiarize yourself with what the province of Ontario requires as far as a basic car insurance policy.

At the time of this post, the Financial Services Commission of Ontario mandates that your car insurance policy must at least meet the following requirements:

• Third party liability coverage: $200,000 minimum

• Income replacement benefit: 70 percent of gross income (up to $400/week)

• Medical rehabilitation/non-catastrophic: $65,000

• Medical rehabilitation/catastrophic: $1 million

• Catastrophic/caregiver: $250/week for dependent 1 and $50 for each additional

• Catastrophic/home: $100/week

• Death and funeral: $25,000 payout to spouse; $10,000 payout to each dependent; $6,000 funeral expenses

These are the minimum legal requirements and are not adequate for anyone. As an example the minimum liability limit anyone should consider is $1,000,000, and the other minimum limits should be reviewed. However if you do an online quote for “basic coverage,” this may be all you are buying. Check what you are getting a price on against this checklist so you know what has been upgraded and what has not.

These minimum coverages also do not give you insurance on your car – for example, if it is stolen or if you bump into someone in a parking lot and your car is damaged.

2. Write down all possible savings and discount options

Because carrying car insurance is mandatory in Ontario, once you know the coverage you want, the coverage that companies provide will be similar. 

Where insurance companies can and do get competitive is in the types of discounts, savings and perks they offer their customers.

Here are examples of savings and discounts you may be eligible to receive:

• Discounts and perks for memberships you have, and groups you are part of. As an example, at Mackay Insurance we represent one insurance company that will give a discount for CAA membership, and another insurance company that will reward you with Air Miles points.

• Good driver discount: Accident-free for a certain period? This could save you money.

• Discounts for how you pay your premium – you may be able to save money if you want to pay in two or three installments instead of in 12 monthly installments

• Multiple policies: if you insure your cars and house with the same broker, you could get a valuable discount.

• Good grades: For younger drivers, good grades can sometimes save you money on your policy.

• On-board driver tracking device: part of a new breed of insurance policies called “usage-based insurance,” some insurers now offer savings for drivers who allow their driving to be monitored in real time.

• Limited vehicle usage: If you drive only during certain hours of the day or on certain days or at certain times of year, this could lower your premium.

• If you keep your car on your private driveway or in your garage at night instead of parking it on the street, you may be eligible for a discount.

3. Consider your deductible comfort zone

If you are still paying off a loan on your car, the lienholder may limit what your deductible options are.

In general, raising your deductible will lower your car insurance premiums. Just be sure you don’t raise your deductible beyond what you could readily pay out of pocket if your vehicle gets damaged. Get the price difference on a few deductible options and find the balance that makes sense. If a much larger deductible saves you only a few dollars, keep the lower deductible.

4. Be sure to verify that the insurer is licensed to provide policies to Ontario residents

This is a big one! When you shop for car insurance online, the burden is on you to be sure the quote you receive is from an insurer who is licensed to provide policies to Ontario residents.

Here at Mackay Insurance, we have heard just about every horror story there is about how customers got taken for a ride by unethical insurers.

We don't want this to happen to you! If you end up without insurance, you get hit three times. You may not be able to get back the premium you paid to an unethical, unlicensed company. You may pay a fine for not having proper insurance. And you won’t have the coverage you thought you were buying.

When in doubt, the best way to verify that the insurer is legitimately licensed to do business in Ontario is to contact the Financial Services Commission.

5. Research the insurer thoroughly before choosing your policy

Even after verifying that the insurer is legally permitted to offer you an auto insurance quote, you should do additional research to make sure the insurer has positive ratings and is in good standing in the community.

Look for independent reviews and read what other customers say about working with that insurer. Verify that the insurer has a local office, a brick-and-mortar physical location where you can meet with brokers or claims adjusters in person if you need or want to.

Get in Touch

Do you need help shopping online for Ontario car insurance? Our friendly, knowledgeable brokers can assist you!

Contact us online or give us a call at 1-888-853-5552.

Buying life insurance is never fun. But it doesn't have to be difficult or even stressful.

In fact, life insurance as a product is actually designed to help ease stress, worry and anxiety in your life.

With the right life insurance policy by your side, you can wake up each day knowing your loved ones will be taken care of financially should you suddenly be unable to provide for their needs.

But getting there can feel daunting, especially when you are trying to figure out which type of life insurance product offers what and how much of it all you actually need.

In this post, we aim to demystify and simplify life insurance step by step so you can select the right policy with ease and confidence.

Step 1: Choose Between Term and Permanent Life Insurance

There are two basic umbrella categories of life insurance: term and permanent.

Term life insurance

Term life insurance is the simpler of the two types of life insurance you can buy here in Canada.

Term life insurance gets its name from how it works: the policy is active for a set term and activates only if the policyholder dies. Once the policy term expires, it is necessary to buy a new term life insurance policy to stay covered, and the premium for the next term will generally be higher.

The one exception is if you purchase a convertible term life insurance policy. In this case, you can convert your policy into a permanent life insurance policy as long as you do so before the term expires.

You should choose term life insurance if:

• You have debt and just need to know your family has financial protection in place until the debt is retired.

• You have a limited budget for life insurance and need predictable premiums.

• You are building an investment portfolio elsewhere.

Permanent life insurance

Permanent life insurance is sometimes also called universal or whole life insurance, although there are some important differences about each.

Essentially, permanent life insurance is a type of policy that is, as its name implies, permanent - it stays with you throughout life and your premium is generally the same for your entire life. It also has a value in addition to the amount it pays out when you die, so it is like a combination life insurance policy and investment.  

As such, permanent life insurance is often viewed as both a protective policy and an investment policy.

You should choose permanent life insurance if:

• You want to add life insurance to your investment portfolio.

• You are able to afford the higher premiums for having a cash value to your policy.

• You want to offer your dependents a guaranteed death benefit payout.

• You are interested in the tax benefits from holding a life insurance policy.

• You want the flexibility to access the equity on your policy in emergencies.

Step 2: Decide How Much Life Insurance You Need to Buy

Because the whole topic of life insurance can feel emotionally charged, it can be good to talk through this step in the decision-making process with your insurance broker.

Having friendly, knowledgeable, objective input can really simplify the planning process.

We like to give our clients this simple 4-step worksheet:

1. How much debt are you carrying?

You may have a car note, a mortgage, student loans, credit card debt or all of the above.

In the event your income suddenly ceases, these creditors will be first in line to gobble up any available resources.

So you definitely want to make sure you purchase sufficient life insurance to cover your debts until they are paid in full.

2. Who is financially dependent on you?

Do you have a spouse? Children? Grandchildren? Elderly parents? Pets?

Consider who among your loved ones may find themselves in sudden financial distress if you were to pass prematurely.

3. What is your monthly net income?

At the very least, you want your life insurance policy to be able to cover your ongoing monthly financial obligations (such as debt) plus replace your monthly net income.

4. What are your dependents' future financial needs?

If you are saving for a child's higher education or have an aging loved one who may need future care, these are examples of financial needs to factor in when choosing your policy amount.

Buy Earlier And Pay Less in Life Insurance Premiums

Like any insurance product, life insurance premium quotes factor in a variety of risk variables.

The major risk variable when it comes to life insurance, however, is, well, death. So it just makes sense that you may well pay lower insurance premiums when you are young.

This can be helpful for budgeting as well as future financial and investment planning.

Other Ways to Save on Life Insurance Costs

You may also be able to trim your premium costs by taking advantage of these cost-saving tips.

• Ask your employer about group life insurance (employer-sponsored life insurance).

• Opt for term life insurance if premium costs are a real issue.

• Choose a shorter term up front.

• Use a life insurance broker like Mackay Insurance that can shop around for the best rates on your behalf.

• Pay for your premiums once annually instead of monthly or semi-annually.

• Ask about preferred rates (these can include non-smokers, health history, etc.).

• Buy a stand-alone life insurance policy instead of mortgage life insurance.

Get in Touch

Do you need expert, objective guidance to help you protect your loved ones through the purchase of a life insurance policy? We can help! Just complete this simple online form to get a no-obligation life insurance quote.

Contact us online or give us a call at 888-853-5552.

Have you ever heard of “insurance potholes?” As their name implies, insurance potholes are unexpected coverage gaps that arise when you least expect them.

In the case of a travel trailer, camper or recreational vehicle, insurance potholes in your regular homeowners or auto insurance policy often aren’t noticed until it is too late.

You make a call to your insurer because your trailer has become damaged, destroyed, stolen or vandalized, only to be told you have no insurance coverage or only minimal coverage for such issues.

What now? What can you do? The answer is often, sadly, “not much.” We don’t want this to happen to you! This is why Mackay Insurance offers flexible, personalized coverage for these special types of non-motorized wheeled vehicles.

What Is Trailer Insurance?

Trailer insurance is a product specifically designed to cover a vehicle that is not really a vehicle – one that has wheels but doesn’t have a motor.

The exact configuration of what you are towing can vary – you may have a small pop-up camper, a large fifth-wheel trailer, a teardrop sleeper camper or some variation thereof.

As long as it has wheels but no motor and is designed to be towed, not steered, trailer insurance is the right policy to protect what you own.

What Types of Trailers Does Trailer Insurance Protect?

As we just outlined, trailer insurance is designed to protect wheeled vehicles that lack motors.

More specifically, these are the major categories of trailers that trailer insurance is designed to cover:

• Fifth-wheel campers

• Tent campers

• Pop-up campers

• Truck campers

• Travel trailers

When Do You Need Trailer Insurance?

Depending on the details of your personal homeowners insurance and auto insurance, you may actually have some amount of coverage for these non-motorized, wheeled, recreational vehicles already.

But then again, you may not.

Before taking out a separate trailer insurance policy, be sure to talk with your Mackay broker and review what existing coverage you already have to see what is and isn’t covered.

What Is Included in a Trailer Insurance Policy?

Like other insurance products, trailer insurance can be personalized to a degree. This means you have flexibility when it comes to options like your deductible, coverage levels, types of coverage, seasonal coverage, etc.

These are the typical categories of coverage that trailer insurance is able to provide:

• Emergency roadside assistance

• Damage, destruction or theft of the trailer

• Damage, destruction or theft of trailer contents (including perishables like food)

• Collision coverage

• Water damage coverage

• Debris damage coverage

• Lock replacement coverage

• Injury to people or pets

• Extended warranty for parts or appliances

In addition, there are special riders available to cover less typical needs.

How Much Trailer Insurance Do You Need?

This is where you will want to look closely at any existing coverage you may have through your homeowners insurance or auto insurance policy.

For example, your homeowners insurance may offer coverage for damage, destruction or theft of some of the contents of your travel trailer. Your auto insurance may cover liability issues when you are on the road with the trailer hitched behind your vehicle.

But the only way to know for sure is to read the fine print and review policy details with your Mackay broker.

Whatever is not covered under any existing insurance policies you already have is what trailer insurance is designed for.

Here, as with other insurance policies, you will have a deductible. The deductible is designed to give you more control over your premium costs, but you don’t want to choose a higher deductible than your finances can comfortably accommodate.

So take a look at the full replacement value of your trailer, minus what existing insurance provides coverage for, minus any amount (if applicable) you can afford to pay out of pocket to fix or replace your trailer. That is the amount of coverage you need.

Should You Rely on Your Homeowners or Auto Policy?

One thing we always tell our clients here at Mackay Insurance is that sometimes purchasing more insurance is actually less expensive in the long run!

For example, let’s say your homeowners and auto insurance policies do provide some level of coverage for your trailer as well. So you assume you don’t need trailer insurance, but then something happens.

Now you are in the stressful position of having to make a claim on your existing homeowners insurance or auto insurance policies if something happens with your travel trailer.

These types of major insurance policies tend to be more expensive in every way, including the hike in premiums you are likely to face after making even a minor claim.

This is why we say that, often, it can be a safer bet for your finances to simply let a separate trailer insurance policy handle any claims you may need to make to repair or replace any aspect of your trailer.

How Much Does Trailer Insurance Cost?

As with other types of insurance policies, the cost of your trailer insurance will be based on the value of your trailer and its contents.

Let’s take a very general example just so you can get a sense of how this might work.

For every $10,000 of value, you can expect to add another $15 or so to your monthly premiums. So for a very basic trailer worth $10,000, your monthly premium would likely be around $15. For a trailer worth $20,000, your monthly premium would be around $30 per month, and so forth.

Do You Own a Travel Trailer or RV?

Mackay Insurance now provides a special type of insurance policy to ensure your travel trailer is protected.

Get in Touch

Contact us online or give us a call at 1-888-853-5552.

Special-event insurance is a less well-known product – in fact, most people don’t even know they need it until after their event date has passed!

But depending on what you’re planning, you really may need it. In this litigious society we live in today, you just never know when an unexpected oops might turn into a headline-making lawsuit.

In this post, find out more about what special-event insurance is, when you need it, how much insurance you need and how to get it.

What Is Special-Event Insurance?

Special-event insurance might more accurately be named “special-event planner insurance.” It could also be called “one-day event insurance,” since in most cases it is active only for the time the event is taking place.

The primary purpose and goal of this type of insurance product is to protect you, the event planner, from any event or action that might cause you financial or personal distress.

More specifically, special-event insurance is designed to cover anything and everything that might occur during your special event that no other existing insurance policy will cover.

What Does Special-Event Insurance Cover?

Special-event insurance, like most insurance products, can be customized to some degree. This means the answer to the question of when you need special-event insurance may not be clear-cut at first.

It is always smart to talk with your Mackay broker to share the details of the event you are planning and discover if special-event insurance is a smart choice.

For general purposes, special-event insurance is designed to cover issues such as the following:

• Damage/destruction of rented property (i.e., venue, tables, chairs, tent, vehicles)

• Bodily injuries sustained by bystanders, participants, staff or you

• Extra costs sustained by last-minute vendor cancellations or changes

• Financial losses due to participant cancellations (permits, security deposits, etc.)

• Issues related to alcohol (this often requires a special rider on the policy)

• Event cancellations due to weather, fire, power outages and other unforeseen issues

When Do You Need Special-Event Insurance?

Here are some common event-planning scenarios to help you think through whether or not you may need a special-event insurance policy.

You are hosting an event at your home

In general, if you are hosting small events in your home, your homeowner’s insurance policy will probably be sufficient to cover you.

Here, you want to read the fine print of your policy, because sometimes there are exclusions for gatherings over a certain number of people, where alcohol will be served, specific types of gatherings (such as bachelor/bachelorette parties) and similar limitations.

If you will be bringing in a band, a DJ, portable bathrooms, a tent, valet parking attendants or any similar additions, you may also need one or more permits from your municipality.

And if you are hosting a party where most of the guests are personally not known to you, be sure to talk with your Mackay broker to find out if you need special-event insurance to increase liability coverage during the event.

You are hosting a personal event at a rented space

Purchasing special-event insurance is always a smart move if you are hosting an event at a rented space. If alcohol will be served, be sure to mention this when you take out your policy. Often this will require a separate policy rider.

Here, it does not matter whether the event will be private (invitation-only) or open to the public. In either case, and especially in the latter case, unless the rental venue specifically states otherwise, purchasing your own independent special-event insurance policy is a protection you don’t want to be without on the day of your event.

You are hosting an event for work

If the event you are hosting is for your employer and is part of your job description, it is quite likely your employer already has insurance that will protect you, but be sure to ask!

If the event you are hosting is for your own small business, talk with your Mackay broker about whether your existing small-business liability insurance policy is sufficient to protect you or if you need to add a separate event insurance policy for the day.

How Much Special-Event Insurance Do You Need?

As with any insurance policy, you have options when it comes to purchasing your policy. In general, event insurance is an inexpensive product and also one you have a great deal of control over.

Life insurance is not the cheeriest topic in the world. No one loves to spend their weekend poring over pamphlets about death benefits and future payout potential.

But we do it because of them – our partners, our children, our parents, even our pets.

We do it because we don’t want to lie awake at night worrying about what will happen to our loves when we aren’t there to care for them. We do it because the unexpected is a smart thing to expect in today’s day and age.

Learn about your life insurance options as we move into the holiday season – perhaps this is the year you give this gift for the living to those you love!

Two Basic Types of Life Insurance

Despite what you may have heard or read, there are really only two basic categories of life insurance: term and permanent.

Regardless of which type of life insurance you select, you can expect to make a premium payment (typically remitted monthly or annually) to keep your policy active.

In exchange for your premium payments, your loved ones can expect protection in the form of a death benefit payout should the unfortunate occur.

What Is Term Life Insurance?

This is the simpler of the two options. Term life insurance is more affordable, faster and easier to apply for. It is a popular choice for singles, young couples and young families.

Term life insurance is designed to provide protection for a specific date range, or term.

After the selected period of time has expired, the insurance product also expires, whether there has been a death payout or not. If you continue to need protection, it is then necessary to purchase a new term life insurance policy.

What Is Permanent Life Insurance?

The second type is permanent life insurance. Here is where confusion often sets in, because permanent life insurance goes by lots of different names.

Some common names for permanent life insurance include whole life insurance, universal life insurance and even term to 100 life insurance. But basically, these are all just types of permanent life insurance with different benefit structures.

Permanent life insurance is also designed to provide protection in the form of a death benefit payout. But rather than having an expiration date, permanent life insurance endures until the policyholder passes, so there is never a need to purchase a new life insurance policy.

There is also an additional benefit in that the policy itself can function as a type of retirement investment product. It can be used in multiple ways while the policyholder is alive and passes the benefits on to designated beneficiaries when the time comes.

Why Choose Term Life Insurance?

Term life insurance is designed to be simple, although we realize it may not seem that way at first glance!

Term life insurance is a great fit if you are single, coupled or starting your family. This is the most popular type of life insurance with these three categories of shoppers because the basic goal is simply to protect dependents in case a primary income stream suddenly disappears, through death.

There are different protection periods to choose from. Term-10 is a policy that lasts for 10 years from the date of issue. Term-20 lasts for 20 years. Term-30 lasts for 30 years.

The premium you pay is calculated based on an average risk over the term you choose. Say you choose a term-10 life insurance policy. On the date your policy starts, the risk of death is probably low. But it will increase slightly every year for obvious reasons.

The premium you pay each year will be an average of all 10 years’ worth of risk. For this reason, your premium will not increase during the course of your policy term.

This is what makes longer-term periods attractive to term life insurance policyholders – you get a locked-in rate that includes the lower risk cost of your younger years.

However, when your policy expires after 10, 20 or 30 years, there is no cash value to you (no payout—payouts are not made unless in the case of death) and you will then need to purchase a new policy.

Why Choose Permanent Life Insurance?

Permanent life insurance is by necessity a more complicated type of life insurance product. This is because it is designed to do more than simply provide protection in the form of a death benefit payout.

The first difference is found in the cost of your premiums. This is because permanent life insurance does not have an expiration date. Your premium costs are calculated based on risk of death from now until you actually do pass, whenever that may be.

So the premium payments you make will be higher than they ever will be for term life insurance right from the start. As well, to keep your payments from skyrocketing later in life, premiums start out higher than they would be in a term life insurance policy and stay that rate.

This is important because your policy actually accrues cash value over and above any future death benefit. Each year, your premium payments are held in reserve and appreciate in value.

If you choose to cancel your permanent life insurance policy, you will then receive a refund based on how much you have paid in over and above what your actual risk to date has been.

Get in Touch

Is it time to think about giving your loved ones the gift of protection through taking out your personal life insurance policy? Our friendly, experienced Mackay insurance brokers are happy to help you choose the policy type that meets your needs!

Contact us online or give us a call at 888-853-5552.

Being classified as a high-risk driver can impact your life in some surprising ways. Sure, you expected your auto insurance premiums to increase after that last accident.

But what you probably didn’t expect was to have your auto insurance policy cancelled!

Unfortunately, even as the entire landscape of Ontario auto insurance is changing (read our blog post about this change here), there isn’t much that can change once you are classified as a high-risk driver.

Once your status changes to high-risk, typically your sole goal becomes finding someone, anyone, who will issue you auto insurance.

In this post, find out what you need to know about high-risk auto insurance: what it is, who needs it and how can you get it.

What Is High-Risk Auto Insurance?

As the name suggests, high-risk auto insurance is designed to provide coverage to drivers who have been deemed a “high risk” on the roadways.

What may not be so clear, however, is that different insurers are permitted to create their own set of criteria for determining who falls into the high-risk category and what type of policy they will provide, if any.

For example, some insurers may base this designation solely on your driving record. Other insurers may factor in additional information such as demographics (vehicle type, vehicle age, payment history, etc.).

So while it is always smart to shop around and gather several quotes before choosing an insurer for any type of insurance product, this makes shopping around especially important if you have been designated as a high-risk driver.

Who Needs High-Risk Auto Insurance?

A number of different factors can play into who gets designated as a high-risk driver. While every case is different, let’s look at some of the most common reasons you may be reclassified as high-risk behind the wheel.

Impaired driving

If you have a DUI (driving under the influence) charge on your driver record, even standard high-risk auto insurance may not be sufficient for your needs. DUI insurance is a special category of high-risk auto insurance that some insurers provide for this purpose.

Reckless driving

Reckless driving, which may include careless driving and stunt driving, can quickly get your driver status reclassified to high risk. A number of insurance companies have started to treat a cellphone/distracted driving ticket as a major problem, the same as careless driving.

Driving a high-risk vehicle

These two get frequently confused (for obvious reasons), but driving a high-risk vehicle is not the same as being a high-risk driver.

However, both can end up placing you in the high-risk category when it comes to auto insurance. Insurers view driving a high-risk car as similar to exhibiting high-risk driving patterns – both can end up being expensive for them if you submit a claim.

If you own an exotic car, a vintage restored car, a rare car or a car that frequently tops car thieves’ lists of “most desirable car,” you may wind up paying high-risk insurance rates.

At-fault accident

Ontario has elected to use the no-fault system of administering auto insurance claims. However, this doesn’t mean that you won’t be declared “at fault” by your insurer during the claims settlement.

More than 40 different accident classifications exist, including types where no one is at fault. But what is most important to know here is that you can be cited for being at fault in an auto insurance claim even though Ontario itself is a no-fault province.

Once you have been cited as at fault in a traffic incident, you can expect your premiums to increase. Different insurers have different criteria for when a driver is moved to the high-risk category for at fault accidents.

Traffic tickets

Another common reason drivers get reclassified as high risk is citation for other types of traffic incidents, including speeding and running red lights.

Other non-traffic reasons

If you are taking out an auto insurance policy for the first time, no data exists to help an insurer calculate their risk to insure you. This alone may place you temporarily in the high-risk category. 

Still another reason you might find yourself in the high-risk insurance category is if you have credit issues. Many people do not realize that allowing an insurance policy to be cancelled because you do not pay the premium will become part of your insurance record the same as having an accident does, and can put you into a high-risk category. 

How to Get High Risk Auto Insurance

Many insurers do offer high-risk auto insurance, although these types of policies are generally less well advertised than mainstream policies.

The best way to begin is to make a connection with an auto insurance broker and explain your situation.

By taking a more personal approach (versus just shopping around anonymously online), your broker can get to know you, learn the details about why you have been classified as a high-risk driver and advocate on your behalf to get you the best deal on a high-risk auto insurance policy.

This can be especially useful when you have been classified as high risk for non-traffic reasons!

As we shared in the introduction here, it can be beneficial to gather at least a few policy quotes so you can compare what each insurer has to offer. Your broker can assist with this process by reaching out to providers in their network to generate quotes on your behalf.

Get in Touch

Are you seeking high-risk auto insurance for yourself or a family member? We can help!

Reach out to us and one of our friendly Mackay Insurance brokers will be able to assist you with gathering high-risk auto insurance quotes and choosing the best policy to meet your needs.

Contact us online or give us a call at 1-888-853-5552.

If you owned a brick-and-mortar business, you would want business insurance coverage to protect the premises as well as the contents.

But when your business is wherever you happen to be, and your professional tools and equipment travel with you from one appointment to the next, you need tool insurance that can travel with you and protect you wherever you are, day or night.

Mechanics tool insurance is not one of the better-known commercial insurance products, but it is also not the type of insurance you want to learn about only after your valuable tools and equipment have been stolen, damaged or destroyed.

In this post, learn timely information about mechanics tool insurance coverage, why you need it, when you need it and how to get it.

When Do You Need to Insure Your Tools?

When do you need to insure your tools? Is this insurance just for working professionals who use their tools and equipment as part of their career?

The short answer is no.

The longer answer is that tool insurance doesn’t just cover professional mechanics, contractors and businesses such as electricians or plumbers whose livelihood depends on their tools.

If you own a valuable tool collection for personal use, you can also benefit from tool insurance.

But Doesn’t Your Auto or Home Insurance Cover Tools and Equipment?

This is one of the most common misconceptions people hold about auto and home insurance policies!

Unless you have specifically requested a rider to cover valuable property such as tools and equipment, it is unlikely that either your homeowners insurance or your auto insurance policy will cover loss, theft, damage or destruction to your tools.

Even if you have a commercial auto insurance policy in place, this policy may not cover tools and equipment you transport, or your coverage limit may not be adequate to the full value of your tools and equipment.

What Does Tool Insurance Cover?

Tools and equipment insurance can vary depending on the insurer. In most cases, “tools” are belongings that are valued at $1,000 or less per item.

Common examples of tools covered under a professional tool insurance policy include hand tools, power tools, supportive gear (ladders, wheelbarrows, etc.) and safety gear (goggles, gloves, knee pads, etc.).

What Is Equipment Insurance?

If you also own equipment that you rely on to do your job, or if you have a personal collection of valuable equipment for projects or home safety, equipment insurance is a policy designed to protect your investment.

In most cases, “equipment” is defined as belongings with a replacement value of greater than $1,000.

Common examples of equipment covered under a professional equipment insurance policy include compressors, generators, backhoes, excavators, scaffolding and similar types of equipment.

Options for Ensuring Your Tools and Equipment Are Adequately Insured

If you are taking out an insurance policy as a part of your professional career, even a single day’s interruption could be costly for you.

So, as with any insurance product, it is important to set up your coverage in a way that fully safeguards your ability to get back to work quickly no matter what happens to the tools and/or equipment you rely on for your daily work.

Contractor insurance offers different options to address loss, theft, damage or destruction to your professional tools and/or equipment and also to the vehicle you use for work purposes.

Full replacement value versus market value

There are two ways you can be reimbursed for tools or equipment that have been lost, damaged, stolen or destroyed.

You can choose to receive the full replacement cost of the item (i.e., what it would cost you to purchase the item new) or you could choose to receive the market value of the item minus depreciation.

Rental reimbursement rider

It is not always easy to go right out and replace certain high-end tools and equipment. You may need to wait days or even weeks to obtain certain items.

A rental reimbursement rider can get you back to work quickly if you need to rent the required tools or equipment you need to do your job while you wait for the replacement items to arrive.

Commercial vehicle insurance

As mentioned earlier, if your business includes a mobile component, the vehicle you use also represents a valuable part of your business viability.

If that vehicle is also your personal vehicle, your personal auto insurance policy will NOT cover any claims that arise while you are using that vehicle for work purposes. You will need a commercial auto insurance policy to protect your vehicle when you are using it for work.

Even if you have a commercial vehicle that you use only for work purposes, you will still need commercial auto insurance to protect your vehicle as the business asset that it is.

Here again, it is important to review coverage levels with your broker to ensure your business is not interrupted while a claim is being processed.

How to Estimate the Total Value of Your Tools and Equipment

If you need help estimating the full or market replacement value of your tools and/or equipment, your Mackay insurance broker can help.

To get the process started, we invite you to create a complete list of your tools and equipment inventory.

Be sure to include carrying cases, safety gear, supportive gear, cleaning supplies, replacement parts and other items that you use to maintain your tools and equipment.

Get in Touch

Are you shopping around for an insurance policy that will cover your personal or professional investment in tools and/or equipment? We can help!

Contact us online or give us a call at 1-888-853-5552.

Since early January of this year, Ontario’s leadership has been putting the entire auto insurance industry under a magnifying glass, beginning with a survey sent to current policyholders.

Its goal? To initiate reforms to lower premiums to a level in line with the relatively low volume of reported auto-related accidents and fatalities.

To that end, officials have been surveying customers to discover exactly what is – to use their precise words – “broken” in the auto insurance industry. 

In this timely blog post, find out breaking news about these auto insurance changes that may impact what you pay, your coverage levels and your access to electronic resources for managing your auto insurance policy.

What Policyholders Had to Say About Navigating Auto Insurance

The January Ministry of Finance policyholder survey results didn’t surprise anyone who has ever had to navigate the increasingly complex and expensive world of Ontario auto insurance.

More than half of the respondents reported that they found the fine print on their own auto insurance policy too complicated to easily understand. A full 55 percent of respondents said there were few options to customize their auto insurance to their individual needs.

Even as the survey results were being tallied, a Newswire editorial simultaneously reported on continued auto policy rate hikes across Canada.

Some of the steepest hikes took place in Ontario, where policyholders saw increases of up to 9.06 percent. The report cited insurance fraud and increased claims as a reason for the hikes.

The New Proposed Plan: Putting Drivers First

In early April, the government unveiled the new auto insurance plan, entitled "Putting Drivers First."

Lots of proposed changes will be coming down the pike, each of which is designed to help Ontario drivers get lower rates and individually tailored coverage.

Here are five changes we feel are particularly relevant and compelling – be sure to discuss these changes and how they may impact your auto insurance policy!

Reducing Industry Regulation

With fewer auto industry regulations imposed from the provincial level down, insurers will be free to customize rate plans and policy benefits to a greater degree.

This will benefit policy holders by creating more healthy competition among insurers to create new tailored auto insurance plans and packages that appeal to different customer segments.

No More Postal Code Discrimination

Ontario officials have indicated their plans to stop rate increases that are based solely on the policyholder’s address.

Increasing Options to Trim Policy Costs

A number of options are on the table to potentially reduce the costs of issuing and administering auto insurance policies.

Among the most anticipated are two that many feel are long overdue in the industry.

1. Drivers will now be permitted to permit insurers to review credit scores and credit history to influence policy rates.

2. During the claims process, drivers will now be given options to use certain repair facilities or healthcare clinics and receive reduced policy rates.

Fraud Prevention Is a Priority

Ongoing issues with widespread auto industry insurance fraud has impeded the industry’s efforts to better serve customers.

Ontario officials plan to implement stricter controls to improve industry-wide customer data security, control escalating auto insurance claims-related legal expenses, institute new rulings on unfair practices in the industry, develop an online process for submitting and tracking claims and more.

Better E-Insurance Options

January customer survey respondents highlighted a lack of electronic options as a chronic source of frustration when managing their auto insurance policy information. 

Officials have announced that customers will now be able to make policy payments online, access coverage details and documents, connect with their brokers, use e-POF (proof of insurance) documents as needed and communicate via email about auto insurance matters.

Streamlined Claims Processing

The current ponderous claims process has contributed to issues with auto insurance and medical fraud and has caused rising costs. 

Under the new Driver Care Plan, benefit limits for catastrophic injury claims will be increased from $1 million to $2 million in benefits.

After filing an accident/injury claim, proposed changes include providing the insured with a type of insurance debit card that has been pre-loaded with funds that can be used toward covered medical expenses such as physical therapy. 

What to Expect Over the Coming Months

With new rate hikes coming on the heels of the announcement of Ontario’s long-awaited auto insurance industry overhaul, it is hard to know exactly what we can expect in the coming months.

What we do know is that the proposed auto industry-wide reforms are designed to take place in a gradual rollout over the next few years to soften the impact to Ontario’s budget. 

Officials cite the need to design, test and implement the proposed reforms, which have the potential to impact an estimated 10 million Ontarian policyholders, as another reason for the multi-year rollout.

Rest assured that we will keep all of our policyholders updated on important industry reforms that may affect their insurance rates and coverage, claims processes and policy benefits.

Do You Have Questions About Auto Insurance Policy Changes in Ontario?

If you have questions about options to lower your auto insurance policy rates, available discounts and credits, bundling options and family auto insurance plans, we invite you to give your broker a call or send us an email. 

Remember to update your information if you have moved, added a new vehicle, changed your driving habits significantly or taken a seasonal vehicle out of storage for summer use. 

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Are you shopping around for a new auto insurance policy? We can help!

Contact us online or give us a call at 888-853-5552.

As the price of real estate continues to increase, more homeowners are choosing to renovate an existing home rather than trying to upgrade by moving.

This makes a lot of sense, especially if you like where you live and enjoy your neighbors and community.

But there is a crucial task many homeowners fail to do before launching into a remodel, and that is to alert their home insurer.

According to Canadian Underwriter Magazine, a mere six percent of Ontario homeowners thought to review their homeowner’s insurance policy before beginning their renovation project!

And just 14 percent of homeowners contacted their insurance provider to be sure their current coverage would protect them during the remodel.

In this post, learn about common myths, misconceptions and realities regarding homeowners insurance during home renovations.

3 Questions to Ask Your Home Insurance Broker

No homeowner likes to contemplate an increase in an existing insurance policy. But not asking the right questions at the right times can end up being a lot more expensive than taking the time to be sure your current policy is sufficient.

These are the three questions you absolutely need to ask your broker before launching into your home remodel.

1. Will my current homeowners insurance policy provide sufficient coverage while my home is being remodeled?

If you are planning to move out of your home temporarily while your renovation project is completed, this can impact your existing insurance policy.

This is especially true if you will be out of your home for 30 days or longer. You may need to change your home’s status to “under construction” or obtain a home vacancy permit in order to have coverage for perils like vandalism or theft while your home is unoccupied.

2. Will my policy protect me if a contractor, subcontractor or construction worker is hurt on my property while working on my home remodel?

The simplest answer to this complicated question is often “no.” You need to verify that your contractor carries a general liability insurance policy, and also that they are covered by workers compensation.

If you do the work yourself, obviously the risk of a contractor damaging your home or being injured is not a factor. However, this doesn’t change your need to notify your insurer about remodel plans. DIY renovations are still home renovations.

3. Will my homeowners policy need to be changed after I complete my home upgrades?

Did you know that some home upgrades can actually lower your future homeowners policy premiums?

Some examples include beefing up your home security system, installing extra safety lighting, upgrading your roofing or electrical system, upgrading to new energy-efficient appliances or windows, updating your plumbing or installing basement waterproofing.

Other upgrades, however, may cause your policy premiums to increase. In most cases, this is because the upgrades themselves increase either the square footage of your home or its overall value or both.

Examples can include installation of a pool or spa, expanding the square footage of your home, converting an unused room to a home office, adding on an apartment above your garage, installing expensive extras such as granite countertops and any customized one-of-a-kind upgrades.

If you are on the fence about certain upgrades, talking with your insurance broker can be a useful tiebreaker!

Be Sure to Read Your Policy Fine Print Before Starting Your Renovations

Every year, unhappy homeowners find out too late that they have voided their homeowners insurance policy by failing to notify their insurer before a remodel.

Some find this out when something is damaged during the renovation and they learn they are not covered. Others discover long after the renovation that the increased value of their home is not insured because their broker was never informed.

Unfortunately, these homeowners don’t have much recourse once they find out this requirement to notify was outlined in the fine print of their policy documents.

The moral of this sad story is to always err on the side of informing your broker!

What If You Run Into Trouble During Your Home Renovation?

If you have ever been through any type of remodeling or renovation project in the past, you probably know all too well that surprises often crop up once the project gets underway.

Sometimes these surprises occur when you go to file for a permit and discover the building standards have changed and you now need to make unanticipated upgrades to plumbing, wiring, insulation or other components of your home.

At other times, you may be surprised to uncover an unanticipated leak, crack, mold outbreak or other issue that you have to stop and address before your remodel can proceed.

In these cases, your project may take longer than you originally anticipated. Here again, it is vital to contact your broker right away to make sure you have the right coverage for as long as you need it during your renovations.

What to Do After Your Home Remodel Is Complete

Once your remodeling project is finished, it is essential to let your insurer know that your project is complete. You may need to change your home status back from a building under construction and adjust your limits accordingly.

If your remodel has changed the overall square footage, replacement value of items or resale value of your home itself, you will want to edit and update your homeowners insurance policy accordingly to stay fully protected.

In most cases, your policy premiums will not significantly increase, and as we’ve mentioned, some delighted homeowners have even seen their premiums decrease thanks to energy-efficiency, security or safety upgrades!

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Planning a home renovation and need to update your homeowners insurance coverage accordingly? Our friendly, knowledgeable team of insurance brokers can help!

Contact us online or give us a call at 1-888-853-5552.

Click here to get an instant, online, no obligation home insurance quote now.