To be fair, home insurance premiums can go down as well. Let’s look at some of the reasons your premiums can change and how they are determined in the first place.

Insurance premiums reflect risk. A seemingly high or low premium doesn’t just speak to the probability of a claim, however. Premiums also consider the insured value of an item. A house, for example, is expensive to replace. Houses don’t roll around bumping into things, though, like a car might, so the premium prices at a lower risk than a car but a higher cost of repair or rebuilding.

The cost of rebuilding has changed
Among the most common reasons for a home insurance premium to change is that the cost of rebuilding or repairing your home has changed. Many policies make periodic adjustments to the insured value of your home to adjust for the cost of materials and labor. Inflation affects almost everything we buy, including your home insurance.

Other factors in the area have changed
Local, regional, or even national events can cause a change in rates. If you consider the cost of big storms or natural disasters to insurers, often the only way for insurers to remain well-capitalized for future claims is to adjust insurance rates to better match the risks in the area. The nature of insurance is to distribute the costs of losses so that any single insured household doesn’t suffer a huge loss. Regional risks or even local risks can also affect rates, like a significant increase in burglary or fire claims in your neighborhood.

You had a claim
Often – but not always – making a claim can change your rates. Insurance seeks to distribute the cost of a loss, but premiums also consider individual risk. A claim is proof of risk. However, the amount of the change in premium depends on the type and severity of the loss and there may not be any immediate change in premium following a loss.

A claim from the past is no longer being surcharged
Old insurance claims don’t last forever. Over time, many negative items on your insurance history are no longer used as rating factors. A claim from ten years ago may be disregarded while a claim from ten months ago may have a lingering effect on your premium.

You earned a discount
Many insurers offer loyalty discounts, claim-free discounts, or multi-policy discounts. If you’ve been with your insurer for a long time without a claim, you may have earned a new discount. If you don’t already have a multi-policy discount, reach out to your broker for a quote on other types of insurance. Combining home and auto insurance with one company is often an effective way to reduce your overall insurance costs.

If your loved ones depend on your income for their daily needs, life insurance offers you the peace of mind that they’ll have the financial support they need when you’re no longer here for them. One substantial way life insurance makes a difference is with final expenses.

Final expenses are the costs your loved ones will have to pay for burial fees, memorial services, cemetery charges, and other items associated with your passing. According to Eric Vandermeersch, the founder and CEO of Basic Funerals, the average cost for after-death arrangements in Canada is $8,500.

What specifically are you paying for? Here’s a quick breakdown:

1. Death certificate (Up to $22 depending on city/province) and registration (Approx. $55)
This is the cost to legally register your death and obtain a death certificate, which is required for your loved ones to claim insurance, settle your estate, and receive any benefits they may be entitled to as beneficiaries.

2. Body transfer services ($100 or more)
Covers the cost to transport your body from the place of your death to the funeral home or crematorium. This can be costly if you die outside of the province where you will be buried or cremated.  

3. Casket ($700 to $3,000 and beyond) or urn ($20 to $200)
Casket and urn prices vary greatly based on your personal preference. You can opt for a simple casket for several hundred dollars or choose an ornate one that costs thousands. Likewise, a simple urn can be purchased for as low as $20 while more decorative keepsake urns can cost hundreds of dollars.

4. Body preparation ($150 to $550)
This cost covers all the processes necessary to get your body ready for visitation and either burial or cremation such as bathing, embalming, dressing, and applying cosmetics if necessary or desired.

5. Funeral and memorial services ($2,000 and higher)
Depending on the location and number of family members and guests to be accommodated, the actual cost of formal ceremonies can be the greatest after-death expense for your family, particularly if licensed memorial services staff are required to attend.  

If these expenses would be a serious hit to your bank account, then term life or whole life insurance is worth the investment. When you purchase your policy, you will name a beneficiary that understands your desire to use a portion of the death benefit to cover these final expenses. You may even be able to designate your preferred funeral home as the beneficiary for final expenses.

Talk to your insurance broker to discuss this option as well as other steps you can take to protect your family’s financial future in the event you are no longer here to support them.

Active Insurance & Financial Group is growing! You asked and we listened! 
 
We are happy to announce that we have partnered with The Mortgage Centre, one of Canada’s leading and most established mortgage brokerage networks, to offer our valued clients mortgage services. Mortgages are not a one size fits all solution – we’ll have Canada’s leading lenders compete for your mortgage, then we’ll provide unbiased advice so you get the mortgage that’s right for you.

WHY WORK WITH OUR TEAM OF MORTGAGE SPECIALISTS?

INDEPENDENT ADVICE. Because we provide mortgages from various lenders, you're not tied to one lender or one type of mortgage.

MORE MORTGAGE CHOICES. Through our Mortgage Market technology, we have electronic access to major lenders in Canada, so we're able to show you a wide range of rates and features available to you.

WE WORK HARD TO GET YOU A COMPETITIVE RATE BY LEVERAGING OUR WIDE LENDING NETWORK. Fast, convenient, local service. We are here to keep your mortgage moving forward. What's more, you're working with a local business person with ties to the communities where they do business.

SPECIALIZED KNOWLEDGE. Through training and certification, we have a good understanding of available products, features, and rates. We're also great at explaining the sometimes complex industry-specific language in everyday terms, so you know exactly what you're getting into.

REPUTABLE LENDERS. We deal with reputable and established Canadian financial institutions. Plus, we have access to mortgage specialist-only lenders who offer competitive rates and features that you may not find at your local financial institution.

CONTACT OUR SPECIALISTS TODAY FOR MORE INFORMATION OR A FREE MORTGAGE CHECK-UP!

Direct: 647-475-4739  
Email: mortgages@activefinancial.ca
Website: www.activeinsurance.ca

 WE ALSO SPECIALIZE IN:
● FIRST TIME BUYERS
● PURCHASES
● TRANSFER / SWITCHES
● REFINANCING
● DEBT CONSOLIDATION
● HOME EQUITY LINE OF CREDIT
● EQUITY TAKE OUTS
● NEW TO CANADA
● BUSINESS FOR SELF / SELF-EMPLOYED /      STATED INCOME 
 
Diane Thompson
Mortgage Agent License #M08006052
 
In partnership with:
Joseph Trimboli
The Mortgage Centre - I direct Mortgages Inc.
Brokerage license number #10584

Auto insurance often involves a lot of confusing terms, sometimes just shortened to acronyms that only make sense to brokers. Fortunately, it's not that difficult to decode some of the key auto insurance terms and acronyms.

What is PLPD Insurance? 
Personal liability and property damage coverage is the basis of your auto insurance policy. This coverage is for your liability if you are involved in an automobile accident. Specifically, it pays for your personal liability for the injuries to others, which is the “PL” part of the acronym, and it also pays for property damage liability. Property damage can include damage to anything we might bump into with our cars, including other cars, buildings, lamp posts, or just about anything else.
 
PLPD insurance does not pay for damage to your own vehicle if you are involved in an accident. Damage to your own vehicle is covered by your collision coverage if you are at fault.
 
The minimum required coverage for PLPD insurance varies throughout Canada but, in most cases, it's recommended that you purchase more than the minimum required coverage. If your liability in an accident is higher than your coverage, you're responsible for paying the difference between the actual liability and the amount the insurer paid. A higher coverage amount leaves you less exposed.
 
What’s the Difference Between Collision and Comprehensive Coverage? 
Both collision and comprehensive coverage pay for damage to your vehicle, but which coverage applies depends on how the damage occurred. Collision coverage is the easiest to understand, although neither is difficult.
 
Collision coverage pays for damage to your vehicle due to an impact with another vehicle or with a stationary object. If your vehicle rolls over, collision coverage would also apply.
 
You can think of comprehensive coverage as coverage for everything else, which is almost true. There there are some exceptions, such as intentional damage. Most of the other ways in which cars are commonly damaged are covered by comprehensive coverage. Theft, vandalism, falling branches, and even impact with animals are covered by comprehensive auto insurance coverage.
 
Both collision coverage and comprehensive coverage are subject to the deductible amounts you've chosen for each, which can lower the amount of your claim payout if you need to place a claim.
 
If I Let Someone Drive My Car, Am I Covered?
Generally, if you let someone borrow your vehicle, this is called permissive use and your coverage won't be affected just because there's someone else behind the wheel of your car.
 
The rules surrounding this are clearer if the person driving your car doesn't live in your household. If the person driving your car lives in your household but is not on your auto policy, your coverage could be affected and your insurer may require that you add that person to your policy. When in doubt, ask your broker before handing over the keys.