Waiver of Depreciation

[tjaffer]

I am looking for insurance for automobile, and needed some information waiver of depreciation.

How much will insurance premiums increase in the 2nd year for waiver of depreciation for this extra coverage? The first year they are asking $5 a month. I know it depends on history of driving and years.

I have no claims or tickets and also have had my G for 8 years?

Thanks for your help.

TJ

[bsd058]

---I posted this in a duplicate post of yours. I don't know if you got the reply, so I decided to post here too.---

Hi, tjaffer.

This is an international forum. I live in Alberta (originally from ON) but when you're asking how much your premium will increase in the second year for anything it all depends on the claims that the insurer has had for the year, and the inflation rate (increase in the severity of claims). Also, in Ontario, the government is always involved in supressing or increasing the price or increasing/decreasing soft tissue damages cap, and there are so many factors that will affect your premium. Plus each insurer is a little different. It doesn't always depend on your driver's abstract either. It depends mainly on your insurance history. You could have a clean driver's abstract, but have not been driving for the past 8 years. In saying this, however, assuming that you have 8 years of insurance history (all clean with proof from another insurer), then your rates should remain fairly stable with the rate of inflation assuming the insurer doesn't have a bad claim year.

On a premium of an extra $60/year ($5/month) I would say you're usually lookimg at an increase of about $10-15/year the following year assuming just inflation. Such a small premium will not change much.

PS - inflation in auto insurance is not the same as inflation in the CPI. You measure it by the things being protected and cost of fixing/replacing, not by the increase in the price of eggs and bread, etc..

[LHUW]

Last company I worked for simply did an annual endorsement for 24 months with a price change on the second year. Only if the vehicle was purchased new by the insured. In Ontario this is the OPCF 43.