Ways to avoid $6000 insurance?

[Dougal Short]

It seems driving uninsured is better than having fake insurance, since you will not be charged with a criminal offense (fraud), and "only" face a fine of $5000.

Every once in a while I read something on here that is so stupid, I just can't resist commenting. You are aware that if you are in an accident and you are uninsured, it could potentially wipe you out financially right?

In your defense (and I don't know why your rate is so high) I do know of people, including my 21 year old son, who pays close to this amount. He has had one small speeding ticket (no points) but because of his demographic, he gets screwed. We investigated the options you discussed (I own the car, he's properly listed as the principal driver etc) but it really didn't make much difference. The cost comes from the liability aspect and so is tied to the driver, not the ownership for the most part.

I think you would run into the same issue if a friend owns the car and you drive it. If you are honest, you would be listed as the principal driver, and so the rate would be similar. If you are not honest, and are in an accident, the insurance company could investigate and deny coverage.

Since you have been around here for a while, I am guessing you are not 21. So presumably this means that you are being dinged this rate because you are a less-than-great driver. Time to pay the piper. You must have done something to earn this!

 

[Dougal Short]

Ahh, thanks for clearing that up. Any idea why I have to present a copy of my insurance slip when I go to pick up a rental? If, as you say, liability is automatically covered by the insurance company and collision is covered under the optional agreement, what need have I of my personal insurance?

Probably because their insurance company will try to share the cost of any claim with your insurer.

Having said that (and I don't rent cars too often) I don't recall ever being asked to show an insurance slip, just my driver's license. Presumably, lots of folks rent cars that don't own one and don't have insurance...

 

[rhuarc29]

You are aware that if you are in an accident and you are uninsured, it could potentially wipe you out financially right?

Actual case. My sister was rear-ended. Lady that hit her was uninsured and had only been in Canada for six months. She was slapped with an $8000 fine. My sister couldn't get any money off her and claimed $800 worth of damages through her own insurance company, which she ended up paying back in an increased premium. Moral of the story, if anyone is out there driving uninsured, you're a fucking douchebag The responsible drivers have to deal with the bullshit you cause.

 

[oldjones]

Insurance is how we all together share the risk of the damage any one of us—you in this instance—could cause firing a ton or more of steel going tens of kilometres an hour at other people. I am sorry for you that the imperfect system we use to detect high risk drivers and assign them higher costs has caught you. But attempting to evade the cost just passes it on to the rest of us, and does nothing to reduce the risk.

Renting includes short-term insurance, as do the contracts with AutoShare or ZipCars. Unless you and your friend have fully discussed the downstream costs to him, you're actually tricking him into taking on the risk the system has assigned you that high score for, and the two of you would be misrepresenting the situation to the insurance company. Fraud for sure, even if there was no prosecution, and in the end we'd all pay the price in our premiums.

You were caught. Just like the guy who at last hits the RIDE check that costs his license, you have to look at what you have been doing wrong, not the system, and do what you can to fix it. I'd look at this as an opportunity to discover the convenience of letting others navigate through gridlock, of always climbing into a warm car you never have to find a parking place for, and now and then enjoying a variety of clean, well-maintained car models.

But the first and most important component would be to invest some of the insurance and car-ownership money you're saving in a remedial driving course, and use the enforced holiday from daily driving to break bad habits and establish good ones that'll keep your rates down.

Best of luck.

 

[Madeline Rhodes]

When I first started driving I was attempting to avoid a higher rate for insurance... I found something called kanetix which allowed me to plus in ALL of my info... I managed to find one that was about 100$ less a month and have been with the company ever since. Heck when everyone else was crying over increases I dealt with a whopping 8$ increase... Outside of that mine has gone down over 50% over the last 5 years.

It could be worth a try for you.

Another thing is... as dumb as it might sound try seeing if taking drivers education will help. An accredited school gives you a certificate toward your insurance. For a new driver it allows insurance companies to treat them like they had been driving about 3 years. It also negates things like tickets/accidents to a degree in the checks and balances. That 400-500$ might just save you 1000$+ over the year. Might be worth it.

 

[anon1]

Move to Quebec.

 

[Malibook]

Perhaps you could hire your friend to be your chauffeur and drive you around?

My insurance is 2400 a year. What did you do exactly - too many speeding tickets, or too many accidents?

If your friend has a car that is insured, and you don't live at the same address, I think he can lend you his car occassionally to drive and you'd be covered under his policy. However, if you get in an accident the insurance company might investigate to see how often you were driving his car. Not sure what the fine line is between borrowing a car occassionally from a friend down the street, and avoiding getting insurance at high rates by being the primary driver of a car insured by somebody else. If they discovered you bought him the car and pay his insurance just to avoid getting your own insurance, and that you drive 'your' car every day... they may not like that very much.


December 16, 2008:

While you can allow any driver with a current, valid driver's licence to borrow your car, it is your auto insurance policy that will provide coverage should there be an accident. Even if the person has a car insurance policy of their own, if they are driving your car, you are responsible; if they are in an at-fault accident, the accident will go under your insurance history and your insurance rates will likely go up.

In effect, when you lend your car, you lend your insurance.

Leaning towards lending?

According to the Insurance Bureau of Canada, the person you are lending your car to will be covered under your policy if:
•You have given permission to the person borrowing your vehicle.


•The person borrowing your vehicle is a licensed driver who is legally allowed to drive in the province.


•The person borrowing your vehicle does not use your car regularly. If, as part of a regular routine they use your car he or she must be named as an occasional driver under your insurance policy

Lending your car to someone is very risky plus my broker told me that making a claim for another driver who doesn`t have an insurance policy of their own will raise a red flag and be scrutinized.
They can easily check the driver`s abstract to see what is going on and they can make you fight for the claim and even if you win they will take their pound of flesh going forward.

Stinky`s friend would have to be a poor desperate idiot or a naive fool to go along with this scheme.

 

[anon1]

Move to Quebec.

http://ca.news.yahoo.com/blogs/dail...surance-premiums-canada-quebec-202319886.html

 

[sasemohan123]

Doesn't look like your nuts has been stinking young, so i guess you been hit with high-risk categorized, coverage cancelled ...or such, and the rate you got (6000) is Facility. If that's the case, pay your due now, for one year you will be allowed to go back to "regular" rate with ins comp without going through Facility, thus significantly reduced from 6000. There is no other way, i mean legally.

Do not think of any "smart" way around the problem. There is none.

 

[EntertainmentMan2000]

Don't drive. Period. Buy a Metropass and take the TTC.

 

[FatOne]

Don't drive. Period. Buy a Metropass and take the TTC.

Do the rest of us a favor and follow the advice before you kill someone.

 

[Lenny Weinrib]

Autoshare or ZipCar or the Universal Solution....find a way to make more money

When I signed on to AutoShare, they did a driving background check on me.

 

[ctv250]

The OP has been posting his woe is me threads for a couple of months now. First it was the legal system that was out to screwhimand now it's the insurance companies. No accountability for his own actions. I'm betting that he will bedriving without insurance in no time. Let's hope he doesn't involve any of us or our loved ones if he goes that route.

 

[night ride]

One way around it would be to get one of the electric motorscooters gaining popularity. They don't require licensing or insurance. They have a governor limiting them to something like 18 km/hr but undoing one wire gives you almost double the speed. Took one for a ride last summer and I was impressed.

Reminds me of the joke "how are fat girls and scooters the same"?
A: They're fun to ride but you don't want your friends to see you.


They are now selling senior scooters that are like little cars. Roofs/looking doors, radios, signal lights. Again, no license or insurance required.

May be kind of lame, but better than walking.

 

[stinkynuts]

Lots of interesting ideas and suggestions. Thanks.

I am considering my options. I am very sad that it has come to this point. It has been a reality check. I admit that this is all my fault. I had an interview, and they allowed me to keep my license.

I will drive more carefully from now on.

 

[Hotdog]

Ahh, thanks for clearing that up. Any idea why I have to present a copy of my insurance slip when I go to pick up a rental? If, as you say, liability is automatically covered by the insurance company and collision is covered under the optional agreement, what need have I of my personal insurance?

I know alot of people who rent cars who don't own a car and thus don't have liability insurance and I've never been asked to show my insurance slip to rent a car. Just use a credit card that covers collision damage.

 

[AlannaJohnson]

'Move' to Kitchener. Your insurance will drop to <$3000/yr. I'm in the same boat as you and currently drive rentals due to my ridiculous insurance rates (no DUI guys just silly new driver mash-ups a few years ago.) The Kitchener 'move' would save me lots but I've got a few things pending currently which is why I haven't gotten a vehicle of my own yet.

Alternatively, rentals thru Enterprise will likely still cost you less than $6K/yr + your lease/financing payment. I've been informed that rental rates are coming down next Tuesday (yey) with the change of season. You may soon be able to get a weekly rental at a very decent rate. Just get rental car coverage on your credit card and you're set.

Best of luck!

 

[pencilneckgeek2]

Lots of interesting ideas and suggestions. Thanks.

I am considering my options. I am very sad that it has come to this point. It has been a reality check. I admit that this is all my fault. I had an interview, and they allowed me to keep my license.

I will drive more carefully from now on.

If your comments above are serious, you should come out of this just fine, and a better, more cautious driver.

When is your 1st infraction scheduled to be dropped from your record?

 

[Damondean]

Autoshare or ZipCar or the Universal Solution....find a way to make more money

You can't join if you have coinvictions.

 

[buttercup]

Get a bicycle.