I want to buy a car

Mini car insurance lexicon

Always handy when buying or renewing insurance... so you can understand insurer's language!

Deductible

This is the amount of money you must pay in the event of a loss that is covered. For example, if repairing your car after an act of vandalism costs $1,100, you must pay the deductible to the mechanic, say $250, and your insurer will pay the balance, $850.

Driving record

To determine the risk you represent as a driver, the insurer refers to the Automobile Claims Database. This is a public register listing all the claims in wich you have been involved as a driver. You can request a copy of your file at 1-877-288-4321.

Endorsement

A document that modifies your insurance contract. It may add or substract coverage. For example, Endorsement 27 covers damage that you may cause to a rented or borrowed vehicle, such as a moving truck.

Exclusion

Something that is not covered by your automobile insurance; for example, tire wear and rust.

Joint report of automobile accident

A form that you must fill out in the event of an accident where no-one is injured. It makes it easier for your insurer to process your claim. You can order some by calling 1-877-288-4321 or by visiting http://www.infoinsurance.ca/en/.

Loss

An unforeseeable event that causes damage, suchas an accident or vandalism.

Premium

The amount of money that you must pay to have your car insured. Some insurers allow you to spread the payments over 12 months, at no extra cost. Be sure not to miss any payments, to avoid having your insurance coverage cancelled.

Renewal

Your insurance contract will be renewed automatically. Make sure you receive your insurance certificate prior to the renewal date, either by mail or on-line. Check whether there are any increases to the premium and any changes to the contract.

Have you found a better price or better conditions from another insurer? You must notify your current insurer before the renewal date; otherwise, your insurer will impose a penalty fee.