Insurance and Credit

Every summer, millions of people embark on driving vacations across North America. Before you hop in the car this summer, it is important to be aware of important aspects of summertime traveling in Canada and the United States. The following is a list of driving tips that will help make your North American driving experience both safe and enjoyable.

Car Rental: Often people will choose to rent a car because it safe and reliable. The size of the vehicle will affect your gas budget. Smaller cars tend to burn less gas. Larger vehicles will have more space for luggage and gear. Front wheel drive will safely transport you across most of North America, but some locations may have rougher terrain so before you rent, make sure you are aware of the type of roads you will be driving on. For instance, will you be driving in a mountainous area or flat paved road? Make sure seating is both comfortable and roomy. Small cramped seating will make the trip an unpleasant experience. If you are going to travel in the south, make sure you have air conditioning for the hot climate. If you have small children, music or even a television in the back will keep them occupied if you are on the road for long periods of time. Also, make sure you have both liability and collision insurance coverage. You never know when an accident may occur.

Road Side Emergency Kit: In the event that you find your self stranded on the side of the road, you should make sure that you have an emergency safety kit. Basic items to include in a kit are a pair of 12 ft jumper cables, road side flares, flashlight and extra batteries, extra quart of oil, first aid kit, tire pump, tire sealant or patch kit, brake fluid, antifreeze, window washer fluid, and some extra rags. You should also have a good Roadside Assistance package and a working cell phone for emergencies.

Follow the Rules of the Road: North American traffic can vary according to the volume of vehicles on the road. Practicing defensive driving is essential to a safe road trip. Driving in both the United States and Canada is greatly policed. You can receive fines or even have your drivers’ license taken away for breaking traffic rules. You must be ready for dangerous actions of other drivers or hazardous driving conditions. Obey all traffic rules such as speed limits, traffic lights, stop signs, and railway crossings.

Maintain Traffic Speed: A vehicle traveling slower than the speed limit may cause a car crash. When entering and exiting freeway ramps, make sure that you maintain an average speed. Keep a safe distance behind the car in front of you. If a car suddenly slammed on the breaks, it could result in a car accident.

Weather Conditions: Rain, fog, and slippery roads, can make for hazardous driving conditions. Make sure you practice safe driving when in bad weather. Use headlights when appropriate.

Alert Driving: If you are driving for many hours, you can often be overcome with extreme tiredness. If you are tired, stop for a rest, or get another passenger to drive. Falling asleep at the wheel can be fatal.

A Heavy Load or Trailer Tow: It is important to take precautions when driving with a heavy load or towing another car, trailer, or boat. You need more space to pass other vehicles. Keep a safe distance from the vehicle that is in front of you. Before you tow something, make sure that your vehicle is properly equipped. When traveling slower than the traffic, put on your hazard lights or pull over to let vehicles pass.

Every year vacationers travel long distances across North America. When planning a summer road trip, make sure that you are equipped with the right knowledge and equipment to make your trip safe, fun, and memorable.

If you own a membership to an auto club, you have the peace of mind that comes with knowing help is there if you ever break down on the side of the road. However, you may not realize that you can also get a variety of insurance products through the club, often at a discounted price. This is just one of the many advantages to having an auto club membership, so before you purchase your next insurance product, find out what the options are through the club.

Auto Club Membership Is Not Insurance

First, remember that your auto club is not the same as car insurance. The auto club will provide emergency roadside assistance and a variety of other helpful tools to you as a driver, but it is not insurance. You need to purchase automotive insurance outside of your auto club membership in order to drive legally.

Auto Club Members Can Get Discounts on Insurance Products

While membership to your auto club does not equal car insurance, you can use your membership to get car insurance, sometimes at a deeply discounted rate. Because the auto clubs have so many members, they are able to partner with insurance providers to get excellent rates for their members. Personal insurance through the auto club is an additional expense on top of membership, but many members are able to enjoy the discounted insurance premiums.

Types of Insurance Available

The types of insurance that you can purchase through your auto club will vary from state to state and club to club. Most auto clubs offer auto insurance, since it is almost a given that their members will need this coverage. Some offer homeowner’s insurance as well. The homeowner’s coverage is typically underwritten by an organization other than the auto club, but is offered at exclusive club member only prices. Life insurance is another insurance product almost all auto clubs can offer.

A few select clubs offer short-term medical insurance and health insurance for students. These are not intended to replace traditional health insurance coverage, but are rather designed for those individuals who cannot get traditional coverage because they are unemployed, not offered benefits, or pursuing a degree.

Getting Insurance

Getting insurance through your auto club involves the same steps you would use when getting insurance any other way. You will start by contacting your auto club for an insurance quote. You will then compare the quoted price to other insurance products you have inquired about through traditional avenues. You will choose the policy that has the most affordable premium combined with the best coverage and apply for it.

While you will likely find that your auto club has the best rates, this is not a given. Take the time to shop around, because there may be a more affordable policy out there. However, always compare the price and the coverage, because some of the cheapest options have the worst coverage. You want to have insurance that covers you sufficiently, even if you have to pay a little more for it. When getting quotes on your insurance policies, always ask about the coverage as well as the price so that you can compare like products.

No matter where you are driving in Canada, the law requires that every driver has car insurance. Automobile insurance is mandatory in all provinces and territories. Your vehicle must be covered under an insurance policy with a minimum set coverage, If you are caught driving without insurance you can be fined, have your drivers license suspended, and even have your vehicle towed and impounded. Fines can range from $5000 to $50,000.

If you are in an accident while driving without insurance, you could face a number of consequences that include:

If another person is injured or there is a loss of life and you are at fault, you could be liable for all vehicle damages, medical costs, and other losses You will not be entitled to receive compensation for your own injuries and damage to your vehicle, as well as other losses such as income. You may be prohibited from filing a claim against another driver if they are at fault.

If convicted of driving without insurance, your insurance company could label you as a high risk driver and increase your premiums. They could also cancel your policy.

There are a number of factors that determine the amount you will pay for insurance. They include:

New Driver: New drivers do not have a driving history so companies normally rate them as high risk. Insurance premiums will likely be expensive until you have established a good driving record.

Driving Record: Your driving record will affect your insurance premium. Insurance companies look at how long you have been driving and the number of convictions you have acquired. Convictions can include speeding tickets, car accidents, and traffic violations such as running a red light. If you have a clean driving record, your premiums should be low.

Type of Car: The type of car you drive will affect your premium. Vehicles are rated according to the make (truck, SUV, expensive sports car). Companies look at the risk of theft, vehicle collision history, and injuries associated with the type of car. The age of the car and mileage is also a factor when determining rates

Common insurance discounts include: age discount, multi-vehicle discount, multi-line discount (insuring your home and auto with the same insurer) anti-theft device discount, low mileage discount, and auto club membership discount.

There are a number of features that can be included in an insurance policy. The two most important forms of coverage are:

Collision Coverage: This coverage compensates for damage to your vehicle as a result of a collision with another vehicle or object.

Third-Party Liability: This insurance covers you if you are held legally liable when your vehicle injures someone or damages their property. Liability is mandatory in all provinces and territories in Canada.

In some provinces there are limitations on how much compensation you can receive. For instance, in Prince Edward Island, Nova Scotia, and New Brunswick, the maximum amount one can claim for pain and suffering is $2,500. This capped amount is separate from what you receive in insurance benefits. Pain and suffering claims are separate from claims of property damage, medical expenses, or loss of employment income.

There are a number of places where you can purchase car insurance. You can buy it from an insurance broker, insurance agent, or direct writer. Insurance brokers sell policies for a variety of insurance companies. Insurance agents represent only one insurance company. Direct writers are insurance companies that sell their own insurance directly to the customer. The insurance company is responsible for providing the coverage that is noted on a drivers Certificate of Automobile Insurance. You are only covered for what is listed on the certificate. Prices vary among companies so make sure you shop around.

Because car insurance is mandatory in Canada, you should always have insurance before you drive. The costs getting caught without it are much greater than the actual cost of acquiring insurance.