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| Watch this space for the answers to some of the most frequently asked questions. |
Q. Someone backed into the door of my three-year-old car and dented it. I had the damage appraised, and then took the car to a body shop for repair, as my insurer advised. I was furious to find out afterward that the body shop had replaced my door with a used one. As if that's not bad enough, the paint on the replacement door isn't an exact match with the rest of the car. I think my insurance should pay to have the car repainted to match the door, but the company refuses. Why? 
A. There is a "repair and replacement" clause in your automobile insurance policy that says the insurer has the choice of repairing, rebuilding, or replacing a damaged part. Naturally, it will opt for the most cost-effective way to return your car to the condition it was in before the accident.
If the part is too badly damaged to be repaired or rebuilt -- like your door -- then the insurance company will replace it. However, it is obligated only to replace the part with one "of like kind and quality." In the case of your three-year-old car, that does not mean a new door, but rather, a used one similar in condition to the one you had. Remember that your insurance is intended to put you back to the way you were before, not to replace older parts with new ones. If that were the case, you would be profiting from your insurance, and we would all have to pay much more for our insurance premiums.
But if you insist on getting a brand new door, that is your option, as long as you pay the difference in cost. The same holds true if you want your entire car repainted.
Should your car be a write-off -- in other words, it's too badly damaged to be repaired at all -- the insurer will pay you actual cash value for it. The value is based on the amount you could have received if you sold the old car the day before the accident.
Note: Remember, policies vary, so when in doubt, consult your insurance representative.
Nova Scotia
Q. My four-month-old car was in a major accident, which caused more than $10,000 in damage. My insurance adjuster tells me that the car is going to be repaired. After consulting with several collision technicians, I am sceptical that the car can be restored to its original condition. Is it possible for me to have my insurance company re-evaluate whether my car should be repaired or replaced?
A. Unfortunately, there are no straightforward answers to your question. All insurers deal with issues such as these in different ways. Begin by talking to the claims manager of your insurance company. Express your concerns and share the information that you have received from automobile experts, i.e., collision technicians. The claims manager will explain why the company decided to have your car repaired, based on the comparison between the cost of the damage and the actual cash value of the car.
From a safety perspective, your insurance company would not agree to repair your car if it didn’t have 100% confidence in the outcome of the repairs. Your insurer, along with the repair shop, is offering you various guarantees as a client. Both the repair shop and the insurer have been in this position many times. They make these decisions based on many years of experience and combined knowledge. They are also fully aware that the safety of the client (you), and the integrity of both the repair shop and the insurer are at stake.
It is important to discuss your concerns with your insurer’s adjuster and claims manager. Ultimately, however, you will have to accept the answer you get from both the repair shop and the insurer. If they are convinced that repairing the damage is a good idea, ask them about guarantees in case something goes wrong. Whatever decision your insurer makes, you should feel confident that it is based on lots of experience and is the best one for your situation.
Ontario
Q. I'm a 19-year-old male who wants to purchase a 1999 Mercury Cougar coupe. The price is right and the car is great, but the insurance premiums are not. As a primary driver in this age bracket, what strategies might I use to lower my premiums?
A. The cost of auto insurance in your age bracket is based on insurers’ previous experiences of the number and severity of losses for drivers of a similar age.
This loss experience can, and does, vary from insurer to insurer. As a result, you might find a considerable difference in premiums between one insurance company and another.
Compare quotes from different insurance companies to see if it is possible to reduce your insurance costs. One easy way to compare premiums is to get quotes from insurance sites online. Shopping around is definitely your best course of action.
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