Can I lower my car insurance rates if I’m working from home?

Can I lower my car insurance rates if I’m working from home?

The excerpted article was written by Cathy Kearney · CBC News

Auto insurance is an essential financial protection, but as the COVID-19 pandemic forces more employees to work from home and results in others being laid off, many are left to wonder if they can drop some of their coverage to save on premiums.

CBC News reached out to several insurance brokers in Metro Vancouver who say they have been inundated with calls from drivers asking about making changes to their insurance coverage.

Kally Khosah with InsureBC says a number of people are cancelling their auto insurance altogether.

“The majority of people who have lost their jobs are coming in and cancelling their insurance,” said Khosah.

“I would say maybe one or two out of 10 customers is looking to cancel their insurance,” he said.

CBC News asked Khosah what drivers should consider when making decisions about lowering auto insurance coverage.

Can drivers lower their insurance rates if they are working from home and therefore not commuting anymore?

“They can. What they need to do is change their plan from work use to strictly pleasure. That can be changed at any time.

“And if they are going back to work — go see your broker and they will change it back to work use.”

How much will I save?

“It depends on how far you drive to work. If it’s under 15 kilometres you won’t see that big of a difference. If it’s over 15 kilometres it will be more. And if it’s for business use it will be even more of a savings.

“You can go all the way down to bare-bones basic coverage but that’s only going to give you $200,000 liability.

“At this level there’s no coverage on the vehicle if they have an at-fault accident. And there’s no comprehensive, so there’s no fire, theft or vandalism coverage at that level.”

Is it wise to drop coverage down to the the most basic level?

“I tell people never to go down that severely. A good way to decrease your insurance is to slightly lower your liability and raise the deductible. That’s a good way to save some money without losing all your coverage.”

What happens if I can no longer afford to pay my insurance?

“ICBC is offering a deferral program for up to three months.”

What should I do if I get into an accident?

“First thing you want to do is contact ICBC. You also want to write down as much information as you can about what happened and write down the other party’s information. If anybody’s seriously injured, of course you want to contact the police.”

I have been laid off and might consider doing deliveries for work. Do I need to change my policy?

Yes. Khosah says that change will be more expensive than business coverage though. The cost depends on the type of car, how old it is and how many kilometres are on it. But it will definitely be an extra fee.

Edited for ILSTV

Source: CBC News

#DriveSmartBC: Perpetuating Mediocrity

New Driver SignsI once stopped a vehicle being driven at 96 km/h in a posted 50 km/h construction zone. Approaching the passenger side, I spoke with the woman in the front seat and the young lady driving. When I explained why I stopped them, the woman suggested that she was unable to get the driver to slow down, and maybe I could do something about it.

The driver produced a learner driver’s license and no L sign was displayed on the vehicle.

To me, the solution was simple. The woman should have denied her daughter access to the vehicle unless she was willing to follow the traffic rules. The conversation told me that this was a known issue rather than a one time lapse on the part of the driver.

After they had departed and I sat doing the notes for the violation ticket I had issued, I wondered to myself if maybe it wasn’t so simple. Perhaps this woman should not have been given the privilege of teaching her daughter to drive. If the teacher is ill equipped to teach, the new driver will not learn what is necessary to drive correctly and safely.

Do parents read the Tuning Up for Drivers guide that their teen receives in the package with their new learner’s licence? The book contains 20 lessons to prepare for the class 7 road test presented in order for good skill development.

We all tend to think that we are better than average drivers, but I occasionally find myself in conversations with parents who tell me that their teen taught them about things that they were doing wrong when driving.

Yes, ICBC does test the new driver to see if they meet standards as they progress through the Graduated Licensing Program. These standards are much more stringent than they were when I took my driver’s test 30 years ago. The trouble is, attitude can easily be hidden for the duration of a test, but put back on as soon as the driver hits the highway alone.

Perhaps this young lady would be better off taking the complete GLP package at a driving school. She will receive instruction in both the mechanics and the ethics of being a good driver that she might not be getting at home.

Currently Nova Scotia, Quebec and Saskatchewan require a new driver to take formal training in order to get a full privilege driver’s licence. Given the level of complexity facing a learner driver today presented by both the vehicle and the driving environment, perhaps formal training should be mandatory in all provinces.

Resource Links:

Travel insurers confirm individual health insurance coverage for commercial truckers

TORONTO, March 25, 2020 (GLOBE NEWSWIRE) 

Canada’s life and health insurers are confirming that commercial truckers who hold travel health insurance policies on an individual basis will not lose coverage when entering the United States.

Measures announced today will allow insurers to take steps so that routine exclusion clauses tied to a Government of Canada “Avoid non-essential travel” advisory will not apply to those employed as commercial truckers.

Insurers have been working to take steps to confirm continued coverage for truckers who contribute to the cross-border supply chain whose coverage may have been affected by the federal restriction on non-essential travel to the US. Last week, life and health insurers clarified that out-of-country medical coverage would continue uninterrupted for commercial truckers covered by workplace, or group insurance policies.

The situation has been less clear for truckers holding individual insurance as the insurers generally do not classify individual travel health policies by employment category.

As a solution, insurers will be asking those with individual coverage to identify themselves as a cross-border commercial trucker at time of claim. Those purchasing new policies will similarly be asked to identify their trade at time of purchase.

These changes will apply to all individual out-of-country travel insurance policies containing the specific exclusion for “Avoid non-essential travel” federal travel advisories. Those holding policies with a pandemic exclusion should contact their insurance provider for additional details.

About the CLHIA

The CLHIA is a voluntary association whose member companies account for 99 per cent of Canada’s life and health insurance business. The industry provides a wide range of financial security products such as life insurance, annuities (including RRSPs, RRIFs and pensions) and supplementary health insurance to almost 29 million Canadians. It also holds over $850 billion in assets in Canada and employs more than 156,000 Canadians.

Licence renewals and payment deferrals now available during pandemic

March 24, 2020

British Columbians can now extend their expiring driver’s licence remotely, as ICBC adapts driver licensing measures to assist customers to stay home and follow public health orders on physical distancing and further protect employees during the COVID-19 pandemic.

A customer can renew their driver’s licence up to six weeks in advance of the expiry date by contacting ICBC’s Driver Licensing Call Centre at 1-800-950-1498 and temporarily extend their driver’s licence over the phone. The customer will be mailed an interim paper licence that will be valid for 90 days. Eligible extensions include routine renewals, reinstatement of a licence, and the replacement of a lost licence. Expiring BC Services Cards and BC Identification Cards are not eligible for phone renewals. ICBC will monitor the situation and determine whether the 90-day period needs to be extended further.

In addition to this change, ICBC is now offering customers the option to defer their monthly insurance payments for up to 90 days with no penalty, to support those facing financial hardship at this time. This deferral will be available to customers already on monthly Autoplan payments for up to 90 days. ICBC previously allowed for only a single deferral of 30 days.

Customers can use ICBC’s online resource tool to apply for deferrals or call the customer support team at 1-800-665-6442.

ICBC is also taking further measures to ensure physical distancing requirements to protect customers and employees, as mandated by the Provincial Health Officer. Starting immediately, the following services will only be offered online at icbc.com or through the call centre until further notice:

    • Obtaining driving records/abstracts
    • Change of address
    • Paying violation tickets

Enhanced Driver’s Licence (EDL) and Enhanced Identification Card (EIC) processing has been suspended as of March 24, 2020, as those transactions require extended face-to-face interaction where physical distancing guidelines cannot be met.

To further meet physical distancing requirements, all driver knowledge tests will be suspended indefinitely, for motorcycle and passenger vehicles, unless there is a legal requirement to obtain a licence (e.g. new resident to B.C.). Commercial vehicle knowledge tests will continue; however, they will not be permitted with the use of a translator as physical distancing requirements cannot be met. Over the coming weeks, ICBC will be working on finding ways to provide knowledge tests without the need for an in-office visit.

We ask that customers only attend a driver licensing office if their transaction is urgent and cannot be done by phone or online, and if they are not showing symptoms.

For additional information on measures taken during COVID-19:

Regulatory and Advisory Signs

Speed SignDrivers are often confused about the difference between a regulatory sign and an advisory sign. A regulatory sign generally has black characters or symbols on a white background and an advisory sign has black characters or symbols on a yellow background. So, what’s the difference?

The regulatory sign must be obeyed exactly as it is read. Examples of regulatory signs include speed limits, turn restrictions, parking restrictions and directional instructions. Failure to obey these signs is an offence and the driver may be charged if they choose not to follow the instruction.

If there is not a specific offence such as speeding or failing to stop for the regulatory sign, a traffic ticket for disobeying a traffic control device may be issued to the driver.

An advisory sign gives advance notice of conditions on or adjacent to a highway that are potentially hazardous to traffic. A driver may choose whether or not to follow the suggestion given by the sign. Ignoring the advice is not an offence in itself, but anything that happens because the signs are not given consideration may be an offence.

A common advisory sign is the large diamond shaped sign shows a black arrow on a yellow background telling drivers of a curve ahead. Underneath it is a smaller square sign with black lettering on a yellow background showing a speed of 30 km/h.

The example of the curve was chosen to illustrate a point. We have often seen these signs and then travelled around the curve comfortably at speeds higher than that suggested. In those cases the shape of the curve and the road condition could accommodate the vehicle travelling at the higher speed.

So why was the speed warning there? Often it is because the driver’s line of sight is restricted. This would prevent the driver from seeing and reacting to a hazard in or just beyond the corner unless the speed was at or less than that suggested. Heavy trucks may also be required to slow for the corner to prevent tipping over.

A relatively new (since 2012) advisory sign is black on a pink background. These signs warn of an emergency incident ahead and tell drivers to expect responders on the roadway. Proceed with caution as full temporary traffic control may not yet have been established.

Failure to obey an advisory sign is only an offence if something happens as a result of ignoring the advice and the offence is generally for the misadventure that occurs.

Need a quick brush up on what road signs mean? Drop by your local Driver Service Center (where you renew your driver’s licence) and ask for a free copy of Learn to Drive Smart. The signs, signals and road markings are explained in Chapter 3.

Reference Links:

Court Criticizes ICBC “Failure” To Pay For Necessary Treatments

ICBC and the Provincial government have been working overtime trying to persuade British Columbians that stripping collision victims of the right to go to court to be fairly paid for their injuries is a good idea.  They claim that by taking away these rights ICBC will treat victims fairly under a so-called ‘care based’ model.

Reasons for judgement were published this week by the BC Supreme Court, Vancouver Registry, demonstrating that ICBC can be anything but fair when it comes to meeting their obligations to pay for long term injury treatments.

In today’s case (Del Bianco v. Yang) the Plaintiff sustained life long injuries in a collision.  At trial he was awarded damages which included payment for future care for massage therapy and kinesiology.  Despite being ordered to pay this money ICBC refused saying they will pay that portion of the judgement from the Plaintiff’s ‘no fault’ insurance with them over the years as the treatments are incurred.  An ICBC adjuster swore an affidavit declaring payments would be made.

The Court did not accept that ICBC would make payments, however, noting that they refused to pay the mandated no-fault benefits in the years prior to trial leaving little confidence that they would fairly meet their future obligations.  In refusing to deduct the vast majority of the awarded future care costs Mr. Justice Groves provided the following criticism of ICBC’s handling of the claim and their unexplained “failure” to pay past benefits they were obliged to:

[13]         It is concerning to the court that the representative of ICBC, Andrew Rudkowski, has not, in his affidavit, explained the failure of ICBC prior to trial to pay the massage therapy costs of the plaintiff. Liability for these motor vehicle accidents was never seriously in dispute. The injuries that required massage therapy, therapy that was necessary for Mr. Del Bianco to work, and effectively minimalize the extent of his tort claim, were lower back, shoulder and soft tissue injuries.

[14]         Equally concerning is the apparent exaggeration, even today, less than one year into a potentially 40-year commitment, as to the extent of ICBC’s commitment to pay what was ordered after trial. In paragraph 6, Andrew Rudkowski deposes that “ICBC will reimburse Mr. Del Bianco for the necessary health care services he has incurred since March 22, 2019 and he incurs in the future”. That is, as noted by defence counsel, not true. They will only reimburse under their payment schedule of $80, when the court determined on the evidence the cost of such treatment at $85.

[15]         Counsel for the plaintiff ably argued about the difficult financial circumstances that his injury and the actions of ICBC placed on the plaintiff from the time of the accident until, essentially, the time of this application. For whatever reason, unexplained, ICBC refused to pay for his massage therapy treatments. The suggestion from counsel for the plaintiff was that ICBC took the position that because he had a hernia operation after the accident, not related to the injuries suffered in the accident, that the hernia problem was the source of his discomfort. That, to a great degree, defies logic, as the hernia was, for lack of a better term, in the plaintiff’s groin or abdomen, whereas the soft tissue injuries requiring massage were in his back.

[16]         The court is faced with the representations of a claims specialist from ICBC that they will, in the future, pay these costs. The evidence about the lack of financial viability of ICBC, as attested to by the Cabinet Minister responsible for ICBC, the Attorney General, is not significantly disputed. Nor is it disputed that ICBC is not prepared to pay for massage therapy at a rate that the court has ordered.

[17]         Additionally, and though this was not raised by counsel, but is a concern to the court, it is hard to know and predict, dare I say impossible to know and predict, at what rate ICBC will, in the future, be paying for massage therapy costs. This is not just a short-term future. This is 40 years. If, as now, this would require the plaintiff to pay the difference himself, to pay over and above what ICBC is prepared to pay, when the tort award was intended to fully compensate him. He may perhaps then seek reimbursement from ICBC. This creates a 40-year responsibility on this plaintiff to keep track of receipts, to make requests and deal with adjusters at ICBC. That is completely inconsistent with the general purpose of litigation and tort awards, to create some finality between the parties.

[18]         In light of the history of non-payment by ICBC for no apparent reason, as experienced by the plaintiff, it is unrealistic, in my view, to require him for a period of 40 years, to have to continue to deal with an adjuster at ICBC in order to obtain what the court has already ordered he is entitled to.

[19]         Additionally, as noted by the plaintiff, there is just too much uncertainty as to the ability of ICBC to make the payments at a rate ordered by the court. They are, today, not prepared to pay at the rate the court ordered. There is too much uncertainty related to their past history of being disinterested or disrespectful of the plaintiff’s claims. There is too much uncertainty as to what the future holds for ICBC, as evidenced by the affidavit of the plaintiff, for the court to have absolute confidence that if money is deducted from the tort award for Part 7 scheduled benefits, that they will actually be paid.

[20]         I note the case of Li v. Newson, 2012 BCSC 675, a decision of Mr. Justice Abrioux, as he then was. He notes in para. 14, inter alia, that “uncertainty as to whether a Part 7 benefit will be paid must be resolved in favour of the plaintiff”. I find on the facts before me considerable uncertainty that payments consistent with the tort award would be paid to Mr. Del Bianco for massage therapy for the 40 years as awarded.

[21]         As such, I am not prepared to deduct amounts for massage therapy under s. 83 from the plaintiff’s tort award. These comments relate to the massage therapy treatments to age 65 and the massage therapy treatments from age 65 to age 75. There is, as noted above, in the circumstances of a 40-year payment period, too much uncertainty and, frankly, too much of a requirement placed on this plaintiff to potentially request reimbursement weekly for funds not paid directly by ICBC, but payable out of his pocket. That is simply too much to expect.

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