Type of Insurance Coverage's and Warranties (Before Deciding to buy a…
Type of Insurance Coverage's and Warranties
How Insurance Rates are set
Personal Characteristics - Age, Gender, Marital Status, Personal Habits (smoking etc.) and type and frequency of vehicle use.
Geographic Location (classified by postal code) - Rural locations usually have lower rates; urban locations usually have higher rates
Driving Record - Accident with death, bodily injury, or property damage may trigger surcharge on premium for three years. Number and kind of moving violations (total associated points) and number of years insured with the company.
Vehicle Characteristics - Damage, repair, theft record of type and model of car, and age of car.
Types of Insurance Coverage
Comprehensive (about 12% of Premium) - Pays for damage caused by vandalism, hailstorms, floods, theft, etc.
Rental Reimbursement- Pays a specific amount per day to rent a car while yours is being fixed. Towing and labour is included.
Liability (40-50% of Premium) Bodily-Injury coverage and Property-Damage coverage
Collision (up to 30% of Premium) - Pays for the physical damage to your car as a result of an accident, limited by deductible.
Medical - Covers medical payments for driver and passengers injured in an accident
Before Deciding to buy a Service Contract, Find out:
Which repairs the contract covers
Whether the warranty already covers the same repairs
Whether there is a deductible and if so, how much?
Whether repairs and service can be performed at the locations other than at the dealership
Whether the contract covers incidental expenses such as towing
Whether there is a cancellation or refund policy, if so, the cost
Whether the dealer or company offering the service is reputable
Whether you can purchase the service contract later
Types of Warranties
As-is (no warranty) - No expressed or implied warranty. If you buy a car and have problems with it, you must pay for any repairs yourself. Some provinces do not permit "as-is" sales on used cars.
Dealer Warranties - Offered and specifically written by the dealer. Terms and conditions can vary greatly. Useful to compare warranty terms on similar cars or negotiate warranty coverage.
Implied Warranties - Warranty of mercantibility - a product will do what it is designed to do. Warranty of fitness for a particular purpose - a product will do what the seller promises it will do. Always in effect unless the product is sold as-is or the seller says in writing that there is no warranty
Unexpired Manufacturer's Warranties - Manufacturer's warranty can sometimes be transferred to the new owner. There may be a fee for the transfer process.