Getting Acquainted with Insurance

 
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So, you just saved enough money to buy your first car but failed to budget for insurance. Most of us hate insurance – talking about it, paying for it, claiming it. But understanding when and why it’s necessary is a good first step. Let’s talk about the hard stuff.

For The Newly Engaged…

Congrats! While you’re busy admiring your new hardware, consider this: your engagement ring is probably going to be the most expensive gift you ever receive. And a diamond is forever unless you lose it. But, did you know? You can easily include expensive gifts (i.e. your engagement ring) in your home insurance. “Scheduling” a ring into your policy gives it extra coverage so that you don’t have to worry about losing it every time you wash your hands.

But I’m not Beyoncé.
Who is? Whether your engagement ring is worth $25k or $5k, you might want to consider adding it as a “speciality” item to your home insurance. Because, FYI, while your home insurance covers personal items, there’s a limit; and that limit likely doesn’t cover your new accessory. If your ring is over $5k, you’ll also need to get an appraiser to set an official value to it. Once you do that, it’s easy to get a company like Sonnet Insurance to add it to your plan. Read more about insuring expensive gifts here.

For Road Trip Warriors…

Road trips are fun but renting a car can be confusing AF – the booking, the pick-up, the drop-off. Check insurance off your list of things to do by adding it to your policy. Did you know? It could cost around $30/day to buy insurance at the rental counter, but as little as $30/year if you add it to your auto policy. This also applies to borrowing your bf’s car to drive up to the cottage to meet the girls. You need insurance.

Wait. I need insurance to drive someone else’s car?
Yep. If you get into an accident driving your friend’s car, they’ll have to claim damages on their policy, and you’ll have to contact your insurer as well. So, it’s best to ensure you have enough coverage so that things don’t get awkward. Read more about getting coverage to drive cars you don’t own then head over to Sonnet Insurance to choose (or revise) the right plan for you. It’s fully online, clear and concise, and the quote you get is actually the price you pay.

For New Tenants…

Don’t learn the hard way. You may think that just because your landlord has insurance, you’re covered. But, if a fire damages the walls in your apartment and all your stuff, guess what? Only the walls are covered under your landlord’s plan. You need tenants’ insurance to make sure everything you bring to your new bachelor pad is covered.

Great. Another expense.
Probably just $25 a month. That’s a lot less than replacing a new MacBook. Tenants’ insurance actually covers a lot more than you think. For example, if you take your stuff from your apartment to the gym and your bag with your laptop and cellphone and clothes gets stolen, your insurance will cover it even though your bag was stolen at the gym. Some plans will also cover your living and food expenses should you need to move out temporarily while your landlord fixes damages from a fire. Read more about what tenants’ insurance covers here.

For Avid Travellers…

Whether you’re heading out on a road trip or flying toward an epic adventure, make sure the items you’re taking with you are protected. The last thing you want is for someone to pick-pocket your new fancy camera, but life happens, so protect your stuff. If you have high-ticket items stashed at home, whether you take them with you on vacation or not, you might want to consider “scheduling” them under your home policy. FYI, your home insurance already covers a lot of your stuff, but if any of that stuff gets stolen (at home or abroad) and you want to make a claim, you’ll have to pay a deductible first. If you have a valuable item “scheduled,” no deductible applies.

What exactly is a deductible?
It’s the amount you have to pay before your insurance kicks in. For example, let’s say your $2,000 laptop gets stolen and your deductible is $500. If you want to make an insurance claim to get a new laptop, you’ll have to pay $500 out-of-pocket before your insurance company pays the remaining $1,500. Learn more about covering your valuables while you’re on vacation here.

For New Car Owners…

It’s illegal to drive without car insurance in Canada. Which means you have to get it. End of discussion. The added monthly expense covers you in a car accident – your injuries, damages, and injuries and damages to someone else. The cost of insurance depends on how old you are, your driving record and experience, and where you live.

If you really like to go on road trips, consider adding non-owned auto coverage to your plan. It could cost around $30/day to buy insurance at the rental counter, but as little as $30/year if you add it to your auto policy. This also applies to borrowing your BF’s car to drive up to the cottage to meet the girls.

If you’re buying or leasing a brand-new car, consider adding a waiver of depreciation coverage to your plan. Under this coverage, new cars under 5-years-old are covered for repair or replacement without any adjustment for depreciation.

You can save money by combining insurance plans. Reminder: you need home insurance for the condo you’re renting with your BFF. If you purchase both your home insurance and car insurance from the same company, you probably qualify for a discount. Read more about auto insurance coverage then head over to Sonnet Insurance to choose (or revise) the right plan for you. It’s fully online, clear and concise, and the quote you get is actually the price you pay.

Make the switch to Sonnet Insurance. It’ll take 5 minutes and you won’t need to call your mom. Start here.

 
Jacqueline Leung