Different Types of Insurance and Their Importance

Thinking about getting insurance for something? It is important to understand the differences and nuances of each.

In some instances you might even want multiple different kinds of insurance. Eg. If injured in a car accident you might want Health insurance, Disability insurance, Auto insurance, Travel insurance or even Life Insurance (if you die).

1. Health Insurance: Health insurance is crucial for covering medical expenses and ensuring access to quality healthcare. It helps individuals and families afford routine check-ups, medications, hospital stays, surgeries, and emergency treatments. Health insurance provides financial protection against unexpected medical costs and promotes overall well-being. See American Health Insurance if you're American. If you're Canadian, don't worry. You're automatically covered by being Canadian.
   

2. Auto Insurance: Auto insurance or Motorcycle insurance is essential for protecting drivers, passengers, and vehicles in the event of accidents, theft, or damage. It covers liability for injuries to others, repairs to the insured vehicle, and medical expenses. Auto insurance provides financial security and ensures compliance with legal requirements in many jurisdictions.

3. Homeowners Insurance/Renters Insurance: Homeowners or renters insurance safeguards your home or rented property against risks like fire, theft, vandalism, or natural disasters. It covers the structure, personal belongings, and liability for accidents or injuries that occur on the premises. Homeowners/renters insurance offers peace of mind by providing financial support for repairs, replacements, or temporary accommodations.

4. Life Insurance: Life insurance provides financial protection for your loved ones in the event of your death (it really should be called "Death Insurance"). It offers a death benefit to beneficiaries, which can help cover funeral expenses, outstanding debts, mortgage payments, and provide ongoing financial support. Life insurance ensures that dependents are cared for and can maintain their quality of life.

5. Disability Insurance: Disability insurance protects your income if you become unable to work due to illness or injury. It provides a percentage of your salary as a monthly benefit to help cover living expenses during the disability period. Disability insurance is important because it safeguards your financial stability and ensures you can meet your financial obligations even when unable to work.

6. Travel Insurance: Travel insurance offers coverage for medical expenses, trip cancellations, lost baggage, or other unforeseen events while traveling. It provides assistance and financial protection against trip disruptions, emergency medical treatments, or evacuation. Travel insurance is important to mitigate risks and protect your investment in travel plans.

7. Business Insurance: Business insurance is crucial for protecting a company's assets, employees, and operations. It includes various types such as general liability, property insurance, professional liability, and workers' compensation. Business insurance safeguards against potential lawsuits, property damage, business interruption, and employee injuries. It helps businesses recover from losses and ensures continuity.

8. Liability Insurance: Liability insurance protects individuals or businesses against claims or lawsuits for bodily injury or property damage they may cause to others. It covers legal defense costs, settlements, or judgments. Liability insurance is important for providing financial protection and safeguarding against potential financial ruin in case of a liability claim.

9. Pet Insurance: Pet insurance helps cover veterinary expenses for pets, including routine check-ups, vaccinations, surgeries, or emergency treatments. It ensures that pets receive necessary medical care without financial strain and allows owners to make informed decisions about their pets' health.

10. Umbrella Insurance: Umbrella insurance provides additional liability coverage beyond the limits of other policies, such as home or auto insurance. It protects individuals or businesses from large claims and lawsuits. Umbrella insurance offers added peace of mind and safeguards against potentially devastating financial losses.

Each type of insurance plays a vital role in mitigating risks and providing financial protection in specific areas of life. The importance of insurance lies in its ability to offer peace of mind, protect assets, cover unforeseen expenses, and provide support during challenging times, ensuring individuals, families, and businesses can navigate uncertainties with greater confidence.

12 Tips for Shoppers Looking for Insurance

Insurance may be boring, but when you actually need it then your life is anything but boring. What you're really buying is "peace of mind" for when a car accident happens, for an earthquake or tornado, for floods, injuries, deaths and more.

1. Assess Your Needs: Begin by evaluating your insurance needs based on your specific circumstances. Consider factors such as your age, health, financial situation, and the value of your assets. Determine the level of coverage you require and the risks you want to protect against, whether it's health expenses, property damage, liability, or other potential risks.

2. Research and Compare: Take the time to research different insurance providers and policies. Use online resources, insurance comparison websites, and customer reviews to gather information about their reputation, financial stability, and customer service. Compare coverage options, pricing, deductibles, policy limits, and any additional features or benefits.

3. Seek Recommendations: Ask friends, family, or trusted professionals for recommendations on insurance providers they have had positive experiences with. Their insights can provide valuable guidance and help you narrow down your choices.

4. Evaluate Financial Stability: Assess the financial strength and stability of insurance companies before making a decision. Look for independent rating agencies' assessments, such as A.M. Best, Standard & Poor's, or Moody's, to gauge an insurer's ability to pay claims. A financially stable company is more likely to fulfill its obligations and provide reliable service.

5. Understand Policy Terms and Conditions: Carefully read insurance policies to understand the coverage, exclusions, limitations, and any policy-specific terms and conditions. Pay attention to deductibles, claim procedures, waiting periods, and any restrictions or limitations on coverage. If you have any questions or concerns, reach out to the insurance provider for clarification.

6. Compare Premiums and Costs: While cost shouldn't be the sole determining factor, compare premium rates and costs across multiple insurers. Consider the deductibles and co-pays associated with each policy, as well as any additional fees or discounts available. Strive to find a balance between affordability and adequate coverage.

7. Assess Customer Service: Investigate the reputation of insurance providers for their customer service. Look for reviews or ratings that reflect the insurer's responsiveness, efficiency in handling claims, and overall customer satisfaction. Prompt and helpful customer service is crucial when dealing with insurance-related matters.

8. Consider Bundling Policies: Inquire about potential cost savings by bundling multiple insurance policies with the same provider. Many insurers offer discounts for combining policies, such as auto and home insurance or renters and umbrella insurance. Bundling can streamline your coverage and potentially reduce premiums.

9. Review Coverage Regularly: Periodically review your insurance coverage to ensure it continues to meet your needs. Life changes, such as getting married, having children, or purchasing new assets, may necessitate adjustments to your coverage. Regularly reassess your policies and make updates accordingly.

10. Seek Professional Advice if Needed: If you feel overwhelmed or uncertain about insurance options, consider consulting with an independent insurance agent or broker. They can provide expert advice, evaluate your needs, and recommend suitable coverage options from a range of insurers. An insurance professional can assist you in understanding complex policy details and help you make well-informed decisions.

11. Check for Discounts: Inquire about available discounts that you may qualify for. Insurance providers often offer discounts for factors such as safe driving records, home security systems, multiple policies, or affiliations with professional organizations. Take advantage of these discounts to potentially lower your premiums.

12. Be Honest and Accurate: When applying for insurance, provide complete and accurate information about yourself, your health, and your assets. Being honest and forthcoming is essential to ensure you receive the appropriate coverage. Failing to disclose relevant information can result in coverage denial or policy cancellation in the future.

Remember, insurance is a vital tool for protecting yourself, your loved ones, and your assets from unexpected risks. By following these tips and conducting thorough research, you can make informed decisions, find suitable insurance coverage, and gain peace of mind knowing that you are adequately protected.

List of Weird Types of Insurance

Spring is here and the weirdos are coming out of the holes they were hibernating in.

1. Alien Abduction Insurance: Believe it or not, some insurance companies offer policies that provide coverage in the event of an alleged alien abduction. While the likelihood of such an event is highly improbable, some individuals opt for this unusual insurance as a form of entertainment or novelty.

2. Wedding Insurance: Wedding insurance protects against unexpected events that could disrupt or cancel a wedding ceremony. It covers issues like vendor no-shows, extreme weather, sudden illness or injury, or damaged wedding attire. While not entirely weird, it is an insurance policy that caters to a specific event.

3. Body Part Insurance: Certain celebrities or individuals in specialized professions insure specific body parts. For example, a supermodel may insure her legs, a musician may insure their hands, or a taste tester may insure their taste buds. These policies offer compensation in case of damage or loss to the insured body part.

4. Lottery Winner Insurance: Lottery winner insurance is intended to protect individuals who win large lottery jackpots. It offers financial planning, security, and assistance to help manage the sudden influx of wealth. This type of insurance aims to prevent the mismanagement or loss of lottery winnings.

5. Fantasy Sports Insurance: Fantasy sports insurance is designed for fantasy sports enthusiasts who participate in high-stakes leagues. It provides coverage if a key player on a participant's fantasy team gets injured, thus affecting their chances of winning the league. This unique insurance aims to compensate for the potential loss of winnings.

6. Hole-in-One Insurance: Hole-in-one insurance is often taken out by event organizers hosting golf tournaments. It covers the cost of a prize if a participant hits a hole-in-one during the tournament. This insurance is meant to protect the organizers from unexpected expenses resulting from a successful hole-in-one shot.

7. Immaculate Conception Insurance: This type of insurance, which has gained attention in the entertainment industry, offers coverage for actors or musicians who may face unexpected claims of paternity. It protects against false paternity claims that could damage a celebrity's reputation or result in legal battles.

8. Vampire Attack Insurance: Although it may seem bizarre, a few insurance companies have offered policies against vampire attacks. These policies typically provide a payout in case an individual is harmed by a vampire. While purely fictional, these policies add a touch of humor and entertainment value.

It's worth noting that these "weird" types of insurance are often niche and may not be widely available or offered by mainstream insurance companies. Their purpose is often more for novelty, amusement, or specific circumstances rather than for widespread practicality or real-world risk management.

 HAPPY APRIL FOOLS DAY!

Dashcam Discounts on Car Insurance

For awhile now I have been trying to convince my wife to get a Dashcam (aka Dashboard Camera) for her car that records her driving - and records what happens during an accident, likely proving that other drivers were at fault.

For car insurance purposes Dashcams provide the insurance company with a way to make the other person end up paying for the damages. (And consequently the other insurance company.)

For providing proof of who was at fault during a car accident, even if the owner of the dashcam is at fault, it justifies raising their insurance premiums - however statistically the people who buy dashcams tend to be rather safe and conscientious drivers. They know they are being watched by their own dashcam, and thus behave responsibly.

Thus it makes good sense to offer a discount to car drivers who use routinely use a dashcam. (At some point in the future, all cars might automatically come with a dashcam, just like they all come with seatbelts and other safety features.)

Also, Dashcams reduce the likelihood of people committing insurance fraud. So that is a bonus reason for insurance companies to provide a discount.

However not all companies provide a discount to owners of dashcams.

eg. TD Insurance does not provide insurance.

TD Insurance does provide a discount if the car owner has an approved after-market anti-theft system or an approved anti-theft etching system.

But nothing for Dashcams.

Which is disappointing because TD Insurance is my wife's source of car insurance.

So either I need to convince TD Insurance to provide a discount for Dashcams... or I need to convince my wife to switch to a car insurance company that does provide a discount and equitable insurance coverage.

There is another problem too.

So far very few companies in Canada do actually provide discounts to drivers who have a dashcam. A few do, but it isn't anywhere near an industry standard.

Which means consumers need to be doing a better job of ASKING for a discount.

And then saying "Oh, you don't provide a discount to people with dashcams? Oh. I guess I will find a different insurance company."

As it currently stands I am thinking of contacting TD Insurance to ask the following:

"Hello! I am trying to convince my wife to buy a dashcam. She is already a TD customer. Does TD Insurance provide a discount to drivers who have a dashcam?"

I already know the answer is no. But when they say no, I will say: "Oh. Okay. I will tell her to switch companies then. Goodbye!"

It is then implied that TD Insurance just lost a customer.

If enough people do what I am talking about, insurance companies will suddenly realize they should be providing a discount. It makes sense since it is in their own best interest to save costs. Even a small discount makes sense.

There are many Dashboard Cameras available on the market. I have not reviewed any yet, as I obviously still need to convince the wife that we should buy one in the first place.

Enterprise Car Rentals + 2014 Jeep Patriot

By C. Moffat and D. Eze

We recently took a vacation and decided to get a car rental for the trip. Hence why this is a review of both Enterprise Rent-A-Car in Toronto, and also a review of the 2014 Jeep Patriot - as that was the car we took on the trip.

#1. Enterprise - 3.5 Stars out of 5

The prices were fair, on par with similar car rental companies, the biggest difference however was that we requested a compact economy car for the trip and they instead gave us a free upgrade to a Jeep.

The free upgrade was nice, but the gas bill was larger for obvious reasons.

Also we got insurance with the rental, and originally the tab was supposed to be $161 + HST for the car (so the total should have been $181.93), but apparently the insurance for the Jeep was more expensive and they conveniently neglected to tell us that the insurance costs more for the Jeep... so the total ended up being about $242.

So $60 more than. The service was good, but we do feel we got ripped off on the price of the insurance.

#2. 2014 Jeep Patriot

We loved the Jeep.

Power, comfort, air conditioning, all the gadgets you could want on a car, and we were able to figure out how to lower the back seat without needing the instruction manual. We needed to lower it so we could fill the space with 3 coolers, camping gear and more.

So yeah, easy to figure out and spacious inside there. We had more than enough space for all of our stuff and could have brought two large German Shepherd dogs with us too if we had been so motivated.

Further below are photos of us with the 2014 Jeep Patriot after filling up the gas tank to 75% at the gas station (if you don't fill it up to the level you received it with then Enterprise charges you $2 per litre for the difference). And yes, like all SUVs the Jeep Patriot is thirsty... but we don't care because it was otherwise awesome.

Conclusions

We enjoyed our vacation, we enjoyed the Jeep - we are wishy-washy on Enterprise since they overcharged us on the insurance - but overall we are not overly angry at them since their service was otherwise excellent. Just wish they had warned us that the insurance was going to be a lot more.

You can really tell we liked the Jeep because we had big goofy smiles on our faces. :)

Consumer Tips to prevent Vehicle Theft

Aside from your home, your car is the biggest investment that you make in your life and whether it’s a luxury car you take pride in, or just what gets you to and from the loss of such a large personal investment is devastating. While there are many ways to minimize theft, being aware of the most targeted models is important when choosing your next car.

The top 10 most stolen car models are:

DODGE TRUC CARAVAN
HONDA ACCORD EX 4DR
CHEVROLET / SILVERADO
FORD TRUCK F350 SUP
DODGE TRUC RAM 1500
CHEVROLET SILVERADO
GMC TRUCK / SIERRA 1
HONDA CIVIC LX 4DR
FORD TRUCK F350 SD

In other words trucks are the most stolen vehicles in Canada since most of the top ten vehicles are trucks (and Chevrolet Silverado is on the list twice...? Not sure why.). And it is usually the result of someone leaving their truck for "a few minutes" and leave their keys in the ignition. Trucks are also easier to break into and easier to hot wire and typically don't have any anti-theft features.

Most vehicle crime is opportunistic and therefore preventable. Here are some helpful tips to help prevent your car from being targeted:

Know where your keys are at all times.

Never start your vehicle and leave it running with the keys in the ignition unattended.

When you take your car in for service make sure that you’re taking it to an accredited repair facility that you are familiar with.

Be careful about loaning your vehicle to people, their actions can have implications on your insurance.

Make sure to always close the garage door at night and that vehicles are locked. Check to make sure that you haven’t left anything valuable in your car, and make sure your sunroof is closed.

If you’re out shopping don’t leave any cash lying around in the car, make sure that your wallet, keys and purse are all out of sight or safely locked in the trunk.

At times thieves will target specific types of cars and gain access through an unlocked door in the house in order to take the keys of your vehicle and drive away. Make sure that all of your house doors are locked at all times.

The cost and time spent on repairs, buying a new vehicle and replacement of stolen items can easily be prevented by following the above tips. Having theft insurance helps too, but basically you're just begging to have your car stolen if you are careless.

Funny Insurance Commercials

Honestly.

My biggest issues with insurance companies is not how funny their commercials are. My issue is whether their insurance is actually worth it, and whether they pay out when you actually send them an insurance claim. Shadier companies will refuse to pay out due to technicalities in the fine print.

Automotive Insurance Vs Leasing / Renting

I want to take this moment to point something out.

If you live in a city and don't actually drive that often you can save a bundle of money by renting or leasing... Simply because you don't to pay for insurance quite so much.

This is especially true if you are young and male.

Example - A friend of mine has his car in his wife's name just so they can save on insurance. Because it is in her name they only pay $3000 per year on auto insurance. If the car was in his name the insurance would be $5500 per year.

However lets pretend for a moment that they took the subway / TTC to work and they only drove two days per week... Well then they would save a huge bundle of money on the following things...

Auto insurance.
Car repairs / maintenance.
The cost of purchasing a car.
Renting or leasing thus can be a huge money saver.

It is true that you can later sell the car... And then buy a new one, which is another problem because then your insurance goes up because its a newer / more expensive car. If you buy a new car every 5 years you will end up spending a bundle on new cars, replacement parts, automotive insurance, repairs...

Thus if you don't really drive that often it really makes huge economically sense to rent or lease only when you actually need a car.

Travel Insurance

 I must admit that travel insurance is one of the few types of insurance I agree with.

Health insurance, very good.

Accident / liability / theft insurance for your car, very good.

Life insurance... kind of pointless after you are dead. Really only useful if you have family to worry about and haven't already arranged your funeral.

But travel insurance is basically health insurance for when traveling in other countries. Its also supposed to cover financial default of travel suppliers (eg. if they suddenly declared bankruptcy and no longer honoured prepaid tickets), and other losses incurred while traveling. But most of the "other losses" are pretty vague and not used very often so its really just health insurance for tourists.

Standard travel insurance is supposed to cover:

• Medical emergency (accident or sickness)
• Emergency evacuation (volcano, earthquake, tsunami, hurricane, war-zone, etc)
• Repatriation of remains
• Return of a minor
• Trip cancellation
• Trip interruption
• Accidental death, injury or disablement benefit
• Overseas funeral expenses
• Lost, stolen or damaged baggage, personal effects or travel documents
• Delayed baggage (and emergency replacement of essential items)
• Flight connection was missed due to airline schedule
• Travel delays due to weather

Thanks to the internet (Huzzah!) you can now buy travel insurance online very easily. You can even buy travel insurance on your iPhone in roughly the same time it takes you do download an app.

So lets pretend you go to Mexico... and you get sick from drinking the water... or shot by kidnappers... or robbed by bandits... injured during a hurricane... fall in a sink hole and break your leg... Seriously, every year there is some problem with Canadian tourists stuck in Mexico and there has been some kind of catastrophe, murder, kidnapping or whatever.

I know Mexico is really cheap (and fascinating if you love pyramids like I do), but its really got a bad reputation to stuff happening. Having travel insurance when traveling to Mexico should be pretty much mandatory.

So yeah, if you are traveling to a dangerous part of the world like Mexico is, you really should get travel insurance. Mexico is like a jaguar... beautiful, but dangerous.

I remember when I was in South Korea (a country that is still technically at war with North Korea... and the North has nuclear missiles) I got travel insurance. Mostly to cover my health costs in case I ever needed a hospital.

One time I got sick and did need to see a doctor and get antibiotics.

Another time I was mountain climbing (freehand) and nearly fell. Thankfully I did not fall. But if I had fallen I would have either been:

1. Dead, in which case who really cares if I have travel insurance.

2. Very injured, in which case that insurance probably would have been used quite a bit.

That is really the point of travel insurance I guess. When traveling you are more likely to be doing new things - including mountain climbing, horseback riding, deep sea diving, swimming with sharks, dolphins, jellyfish, piranhas, and eating new foods that you could be allergic to. Or drinking water that might not be safe.

Thus travel insurance, even if not traveling to a dangerous part of the world, is still a wise precaution.

Medical Claims, Forms and Insurance

I have never had to fill out a form for a medical claim.

Now part of that is that I've never been seriously sick, never broken an arm or a leg, and I've never needed serious medical attention.

Another part is that I live in Canada - where health insurance is free and paid for by the Canadian government.

Thus filling out forms for medical claims to be emailed to insurance companies... well, I've just never needed to do so.

Furthermore when traveling overseas my only worry has been travel health insurance. Which to be fair, I've never been forced to use.

Now there was that one time I nearly fell off a cliff I was climbing in Jeollabuk-do province in South Korea... I was doing some freehand climbing (no ropes) and I slipped, and I could have fallen to my death or at least been seriously injured.

But I didn't fall thankfully.

Also I am pretty fit. I admit I went through a fatter stage years ago, but I've since lost 40 lbs of fat and put on a healthy chunk of muscle. Basically the point I am making here is that I am unlike the typical American, who is either overweight or obese, and therefore has a lot more medical problems.

Thus as a non-American I have never had to fill out any UB04 claim forms. I barely even know what an UB04 claim form is.

Call it a fundamental difference between the USA and Canada. In Canada we have a health card. When we go to a hospital or a clinic we just pass them our health card to prove we are Canadian. Its a bit like having a credit card with unlimited access. In the USA its all about money being funneled through the insurance industry and then they scratch their heads and wonder why health care in the USA is so darn expensive because its never occurred to them to cut out the middle man.

Put simply an UB04 claim form is a very commonly used document in the USA and is a reimbursement claim form submitted by:

• ambulance companies and helicopter ambulance companies
• ambulatory surgery centers
• home health care agencies / clinics
• hospice organizations
• hospitals (emergency department, psychiatric department, inpatient, and outpatient services)
• psychiatric drug/alcohol treatment facilities (inpatient and outpatient services)
• skilled nursing facilities
• sub-acute facilities
• stand-alone clinical/laboratory facilities
• walk-in clinics

 And so forth. Basically any medical facility in the USA you go to they probably have a few of the forms kicking around.

Now the thing is that companies that manufacture such forms (somebody has to print them out after all!) sell these forms by the truckload to various facilities and insurance companies. Its a lot of paper being wasted, and some of it is presumably recycled, although often such things are placed in warehouses full of records, because insurance companies are perfectionists about keeping old records for everything.

Now the good news however is that some companies are now creating these documents electronically, which means they can also be submitted electronically... Which is great. Saves on postage and shipping costs. Saves on trees too.

Although to be fair, I once worked for a pension plan company, and they also track health claims (because if somebody is off work for 6 months, then in theory they aren't entitled to a pension for that time period unless they can prove an illness or disability with a doctor's note)... And do you know what the company does?

They receive the document electronically and then they print it out as a backup copy (which is then placed in a warehouse full of old records, because pension companies are also perfectionists about keeping old records).

So what is the moral of this story?

Move to Canada maybe? No, not really. We don't really want hordes of Americans moving to Canada. Sounds like a really bad idea.

Is the moral that we do things electronically now, but we still print out backup copies anyway? No, not really. These days the recycling / paper industry is pretty self sustaining.

I think the issue is that some companies are idiots when it comes to keeping records of everything. Sure, the USA needs their UB04 forms for everything because that is just the system they use down there. But eventually they need to start recycling all those old documents in warehouses after 10 or 20 years. Or just get rid of the physical backup copies anyway. Yes, I know, better safe than sorry in case something ever happens to the digital copy...

But to be fair if its stored on warehouses of computers (which I estimate takes up a lot less space than thousands of warehouses full of paper records) the only way those records are going to be destroyed is if there's a nuclear bomb or a flood or some kind of horrific tragedy.

In which case, paper records burn anyway. And water from a flood would likewise destroy them. Thus we would have much bigger worries to worry about than a few lost records from old insurance claims.

Thus why not just go completely digital in the first place? Paper documents will just burn anyway.

Just a thought!