A recent auto insurance inquiry to our office resulted in some surprising, and very disappointing observations.Â This involved a routine inquiry from someone who had been referred to us.Â They were satisfied with our recommendations and terms and wanted us to proceed with the insurance.Â A check of their driving record indicated an otherwise spotless record had only one minor incident whereby a child who, when opening the car door in a parking lot, hit the car beside.
This came as a complete revelation to our prospect.Â It was explained that this happened over 2 years ago.Â At the time, everything was handled âby the bookâ and the owner of the slightly damaged vehicle had repairs arranged through their own insurance company under the âDCPDâ coverage (Ontario Insurance provision) with no deductible.Â As there was no damage to our prospects vehicle, there was no claim presented and it was only reported for the record.Â Â Not surprisingly, no knowledge of the outcome or the amount settled was ever conveyed to our caller by their insurer at the time.
You can imagine the surprise then to find out this had been recorded on their official record as an âat faultâ claim (insured vehicle striking a parked third-party vehicle).Â Â To make matters worse, it affected the terms we were presenting.Â Even some of Canadaâs leading insurers required that their policy now be âaccident ratedâ at a substantial (and in our opinion highly unwarranted) premium.Â Some may find this fair and logical.
Fortuantely, not all insurers were of the same opinion and some allowed common sense to prevail.Â We we were successful in arranging a new policy on a more logical âaccident freeâ basis with another insurer.Â Results ended up being better than expected and our clients were left far more knowledgeable and still satisfied with the new insurance arrangements.
PS.Â If wind had ârippedâ the car door from the childâs hands would the third-party have been stuck with their comprehensive deductible for a windstorm claim?Â At least would not have had any impact on the car door owners insurance.
The Insurance Advisors @ Guthrie Insurance Brokers Ltd
Toronto â (416) 487-5200Â â 1-888-310-SAVE (7283)