A call received from a concerned client last week reminded us how important it is to consider all insurance implications when moving. Our clients are now retired and wanted to downsize a bit and move into the city (Toronto) from the suburbs (Ajax). Certainly, we got them looked after with a new condominium policy arranged weeks before the move. We also changed the rating on their cars to pleasure use only. What was not anticipated was the difference in their car insurance premiums based on a higher rated area.
In their case, the premium for both of their vehicles went from $2494 annually to $3181 including the change to strictly pleasure use! "Why? Our driving records have not changed and we're using our cars even less. We really had not prepared for his added expense…Ouch!" If the move had been the other way, they would have been pleasantly surprised with lower premiums but going from a lower to a higher rated territory can be expensive.
Ontario is divided into many different rating territories with Toronto further sub-divided into even more. These territories reflect auto insurance companies claims experience for such things as accidents, vandalism, thefts, traffic density, and other factors.
So, if you're considering a move and, like most of us, are carefully watching your budget (especially with more limited retirement income), keeping this in mind and checking on the new territory rates well before hand will help avoid this unexpected "after shock".
Courtesy of The Insurance Advisors @ Guthrie Insurance Brokers Ltd