FAQ
What's the difference between an insurance broker and an insurance agent?
An insurance agent is a representative of one insurance company and only sells products on behalf of that company. An insurance broker is an independent business person who acts on your behalf. They usually represent five or six different insurance companies and will work with you to find the best combination of products and prices that meet your needs.
The Economical Insurance Group only sells products through independent insurance brokers.
How do I purchase a home or automobile policy with The Economical Insurance Group?
Contact your local independent insurance broker who will help you determine what your insurance needs are. The broker will search the companies they represent to find the coverage that's right for you. They'll also assist you in completing an insurance application and setting up a payment plan. In the event of a claim, your broker can also assist you through the process.
What information do I need to provide when applying for an insurance policy?
Your independent insurance broker has the knowledge and expertise to guide you quickly and efficiently through the application process.
The law in Canada requires that all drivers have valid car insurance. In some situations, high risk drivers are unable to obtain insurance through an insurance company, in which case they turn to the Facility Association (FA).
FA is an insurance pool that all auto insurance companies in Canada belong to. It is an insurer of last resort and ensures that car insurance is available to those high risk drivers who might otherwise find it difficult to buy car insurance.
What do I do if I think I may be eligible for a claim under the British Columbia Unclaimed Property Act?
Residents of British Columbia who think they may have an outstanding claim under the Unclaimed Property Act should contact The Economical Insurance Group's Vancouver Branch at 604-684-1194 or 1-800-951-6665.
How do I report insurance crime?
When someone steals a car, burglarizes a home, vandalizes property or makes a false or exaggerated claim, everyone has to pay more than they should for insurance. A full 10% to 15% of insurance premiums for home, car and business insurance go to pay for false or exaggerated claims (insurance fraud). Auto theft accounts for an additional $43 of the average auto insurance premium.
To find out more, or report insurance crime, visit www.ibc.ca.
How are insurance premiums determined?
The cost of your insurance is determined by a number of factors that are individual, local, national and international.
The basic concept of insurance is that the premiums paid by everyone pay for the claims of the few who need them. As more claims occur, the cost of insurance has to rise to cover them.
Overall, the total number of claims - and the costs of these claims - has increased over the past few years. Natural disasters, reinsurance costs and fraud all have an effect on the amount you pay for insurance as well.
Rates have increased steadily over the years to cover increasing claims costs. Unfortunately, claims costs in Canada continue to increase more rapidly than inflation:
- Healthcare expenses have increased by about 10 per cent a year
- The cost to fix a damaged vehicle has risen by about eight per cent a year
- Adverse weather conditions in the last decade have caused a lot of damaging ice storms, torrential rainfalls, severe tornados and massive snowstorms
- The cost to repair water damage has increased by more than 20% per year
Reinsurance companies - those who insure insurers - have increased premiums as a result of natural and man made disasters (e.g. Hurricane Katrina, September 11, the Quebec Ice Storm). This means that costs for Canadian insurance companies have also increased.
Insurance fraud in Canada now costs over $1.3 billion a year. This represents about 10 per cent of claims payments. Automobile theft has increased 60 per cent in the last 10 years. Legal expenses in the insurance industry have almost doubled in recent years.
