We offer insurance to many professional

groups in Ontario. If your group is listed below

please click on the group to be directed to your

specific section. If you have any questions about

group insurance with North City please call.

GROUP INSURANCE
FREQUENTLY ASKED QUESTIONS

In this section we try to answer some of the most commonly asked questions that our staff recieve. If you have a question and dont find the answer here please feel free to call us at 416-225-6000 or email us at insure@northcity.ca.

QUESTION: What type of benefits am I entitled too should I be involved in an accident?

ANSWER: Please visit http://www.northcity.ca/resource/benefits.html for more information on your benefit entitlements.

QUESTION: What is “No fault” Insurance?

ANSWER: “No-Fault” insurance was established in Ontario to control the cost of disputing insurance claims in court between insurance companies themselves and to give accident victims prompt financial assistance under their own policy in the event of a claim.

QUESTION: Does “No-Fault” mean my premiums do not increase if I have a collision or unforseen event?

ANSWER: If you have a collision or unforseen event at which you were judged ”at-fault” this will affect your premium. The “No-Fault” system allows you to collect accident benefits under the policy whether you are ”at fault” or not subject to the terms and conditions of the policy. If you are “at fault” in a collision or unforseen event you are entitled to collect under the Accident Benefits section of your policy in the same way as if you had not been “at fault”. However, your policy rating as a driver will be affected if you are “at-fault” in that you will have a chargeable accident on your record.


QUESTION: What factors affect my premium for car insurance?

ANSWER: The principle factors affecting an automobile premium are as follows:

•Where you live and drive your car, as more accidents happen in large congested metropolitan areas than in small towns,

•High traffic density means more opportunities for accidents to occur,

•The make and model of your car,

•Your driving record,

•Your insurance claims record,

•Your level of driving experience and number of years licensed,

•Whether you drive your car for pleasure, commuting or business. The more time you spend on the road means there are more opportunities for accidents to occur.

QUESTION: If I have a ticket but did not lose any points does this count?

ANSWER: Your driving record is one of the many factors used in determining your insurance premium. Whether you lose points or not, any motor vehicle conviction counts on your driving record including seat belt infractions.

QUESTION: Are other drivers insured to drive my car?

ANSWER: Yes, as long as he/she has your permission to drive the vehicle and has a valid driver’s license. All licensed drivers in your household must be listed on your policy regardless of how often they use your vehicle.

QUESTION: If another driver has a collision or unforseen event in my vehicle does it count on my insurance?

ANSWER: Yes, any accident involving your vehicle counts on your driving record. In certain cases where someone driving with your permission has an “at-fault” accident, they may be allowed to transfer this claim to their own automobile policy subject to the consent of both insurance companies.

QUESTION: What do Collision and Comprehensive insurances cover?

ANSWER: Collision insurance covers any damage to your vehicle caused by impact with another vehicle or object i.e.tree, fence, guardrail. Comprehensive insurance covers loss due to fire, theft or vandalism, animal impact, hail, falling objects among other incidents.

QUESTION: What is a deductible?

ANSWER: Deductible is the amount you have to pay towards any at-fault Collision or Comprehensive claim. If you have an insurance policy with a $300 deductible and have a collision or unforseen event resulting in $3,000 damage to your vehicle, you would be responsible for paying $300 and your insurance company would be the remaining $2,700.

QUESTION: Why do insurance companies make such a big deal about a missed monthly payment?

ANSWER: Insurers see missed monthly payments as an indicator of financial weakness. This is commonly regarded as an indicator of someone who might be likely have a fraudulent claim. Be aware that insurance companies will use two missed payments as grounds to cancel your policy. Policy cancellation for non-payment is a negative factor on your insurance record and can affect your ability to get competitive premiums in the future. It is your responsibility to inform your insurer if you change bank accounts with enough lead time to ensure a payment default does not occur as a result of such a change.

QUESTION: What premium payment plans are available?

ANSWER: You may pay your account annually or monthly. Our group programs provide the facility for monthly payment plan with NO SERVICE FEE.

Commonly insurers in the regular retail market charge a 3% service fee on monthly payment plans (equivalent to 6.7% effective annual interest rate) .

QUESTION: My teenager just got a driver license. Do I have to add him/her to my insurance policy?

ANSWER: It makes good sense to add your teenager to your existing policy even though you rates will go up overall. Your rates will be lower than if your teen was to take out a policy on his/her own. They also start to develop their own driving record which will be credited to them in the future when they purchase a car of their own. Your son or daughter is also eligible for graduated licensing discounts and driver training discounts. Make sure to ask your customer service representative at North City about these discounts.

It is very important to let North City know right away whenever a teenager gets a driver’s license. The insurance company could deny claims if your teen gets into a collision or unforseen event, based on grounds that you did not inform them of the new driver which was a material change in risk on your policy.

QUESTION: Am I covered when driving a car in Europe of Mexico?

ANSWER: No, the Ontario Automobile policy applies only in the U.S. and Canada. Coverage may occasionally be purchased for Mexico for an additional premium. No coverage can be purchased for driving in Europe from Canada.

QUESTION: Do I need extra coverage when I rent a car?

ANSWER: Check out everything thoroughly before you go. You don’t want to duplicate coverage; you want to be sure you are getting what you think you are. Some companies cover your rental car but only if your car was damaged in a collision or unforseen event. Some credit cards will cover your rental but again, they also have different limitations and stipulations. Read the fine print and ask questions.

QUESTION: Can I buy coverage for rental car on my own policy?

ANSWER: Yes, the OPCF #27 coverage provides legal liability for damage to non-owned vehicles (rental). This coverage will involve you placing a claim under your personal auto policy and will count on your driving record if you have a collision or unforseen event in the rental vehicle.

QUESTION: My car was “totalled” even though I could still drive it. How do they reach these decisions?

ANSWER: If the cost to repair your car is higher than its value, an insurance company must “total” your car and pay you its book value. Book value is determined by the age, options and condition of your car at the time of the accident.

QUESTION: What can I do if I disagree with my insurance company’s assessment of fault in a collision or unforseen event?

ANSWER: Fault in motor vehicle accidents is determined under a set of pre-determined guidelines called Fault Determination Rules. If you are unhappy with the decision on fault you should speak to your North City representative and find out how your rates will be affected by such an at-fault accident. At-fault can also be partial fault which will still affect your driving record. You may be dissatisfied with the insurer’s decision and you have the right to pursue this matter in court. These matters can usually be dealt with in a Small Claims Court.

QUESTION: How do Highway Traffic Act charges and convictions affect my insurance?

ANSWER: According to the regulations the Fault Determine Rules must be applied with regard to road and weather conditions; visibility or the point of impact on the vehicles. As well, determination on fault is made independently of decisions make by police officers to charge a driver. A charge under the Highway Traffic Act does not necessarily mean the person who is charged was at fault for insurance purposes. In the same way the lack of charges does not mean that no one was at fault.

QUESTION: If I attended court and found not guilty does this mean I am not at fault in a collision or unforseen event?

ANSWER: No, after you report a collision or unforseen event to your insurer the company will investigate the circumstances of the accident and then make a liability decision based on the fault determination rules. These rules were established to help insurance companies provide consumers with prompt cost effective claims handling and consistent treatment. These rules are made under the insurance act and cover more than 40 accident situations using diagrams to illustrate the specific incidents.

QUESTION: Who determines “fault” after a collision or unforseen event?

ANSWER:After a car accident if it is not clear who was “at fault” the insurance companies must determine the degree of “fault” to be assigned to each driver for purposes of determining which coverage applies to the accident and to ensure that the “at-fault” vehicle’s premiums are adjusted appropriately.

QUESTION: How does an “at-fault” accident affect my record?

ANSWER: To the degree to which you are “at-fault” affects the amount of insurance you will receive from your insurer to repair your vehicle. If you are 50% “not-at-fault” then 50% of the repair cost would be paid under the Direct Compensation Property coverage. If you have collision coverage you may claim the other 50% of the repair under that coverage, less 50% of your deductible.

Generally, your rates will increase at your next renewal if you have been found to be fully or partially “at-fault” in a collision or unforseen event.

QUESTION: If my vehicle is involved in a “hit-and-run” accident how does my deductible apply?

ANSWER: When an unidentified third party hits your vehicle, your Collision or All Perils coverage deductible stated in your policy will apply. You should report the incident to the police immediately as this will be required by the insurance company for validation of your claim. Never allow a third party to leave the scene of a collision or unforseen event without obtaining at least their license plate number
North City General Insurance • 2175 Sheppard Ave E, Suite 307 • Willowdale ON • M2J 1W8 • 416-225-6000