Got a new job, moved into a new home or sold your car? Your insurance broker may not be the first person you think to discuss your life changes with, but in certain cases it’s important to notify them as soon as possible.
This is because many life changes can impact your insurance premiums. In some cases, a failure to notify your insurance broker within the time period indicated on your policy could result in one of several penalties, including your insurer’s decision not to renew your policy.
Read on for a list of ten life changes that you should tell your insurer about.
1. You moved
It’s important to tell both your home and auto insurance providers about changes to your address. The neighbourhood you live in is a significant factor in the calculation of your insurance premiums. Your home insurer will need more information about your new home in order to ensure you have adequate coverage in place.
2. You have a shorter or longer commute
If the length of your commute changes due to a new job or the location of a new home, you’ll want to inform your insurance broker. If your commute is shorter, you may now be eligible for a discount on your auto insurance premium.
3. You will be using your car commercially
Have you decided to earn some extra spending money doing deliveries? You’ll need to let your insurance broker know that you intend to start using your vehicle commercially. They can work with you to help find the right coverage to suit your needs.
4. You started a home-based business
If you’ve started a home-based business, you will need to notify your home insurance provider. Otherwise, both you and your business property could be left without adequate coverage in the event that you need to file a claim.
5. Somebody else will be driving your car
If the principal driver of your vehicle has changed or somebody new will be driving your car regularly, you need to update your auto insurance broker to ensure enough coverage is in place.
6. You sold your car and/or bought a new one
If you are selling or transferring the title of your vehicle you must tell your insurance broker that you are no longer the owner. Similarly, when adding vehicles to your policy, you must ensure that you involve your insurance broker in the early stages.
7. You were involved in a car accident
If you, or a driver insured on your vehicle, were involved in a collision, you must contact your insurer right away. You will need to share all the details about the accident, including which other vehicles were involved. Remember, if the damages are over $2,000, you must report the accident to the police as well.
8. You, or a driver insured on your vehicle, received a license suspension
If you accumulate between nine to 14 demerit points, your license can be suspended. License suspensions resulting from violation of driving laws will cause a substantial increase in your auto insurance premium, as well as limit your eligibility with many insurance carriers.
9. You renovated your home
It’s important to alert your insurance broker to any major changes you make to your home—especially those that significantly change your home’s value. Examples of major renovations include swimming pools, additions, alarm systems or a new roof.
10. You no longer qualify for an insurance discount you once did
Investing in certain safety measures for your home and/or vehicle—such as a centrally monitored home security system or winter tires—can sometimes qualify you for reduced home and auto premiums. If you no longer use the safety measures that once qualified you for the discount, you will need to inform your insurance broker that you are no longer eligible.
It is important to note that while you need to inform your insurer of these common life changes, this is not a complete list. If you’re unsure about whether or not you need to update your insurance broker of a change, it’s best to notify them just in case. Contact your OTIP insurance broker today at 1-800-267-6847.