Road Trip Ready in 2022

If like many, you are planning a relaxing and long awaited road trip, you may have noticed the effects of inflation. The increased price of gas, hotel accommodations and food will certainly take a bite out of our budgets.

Unlike home insurance policies, standard auto policies in Ontario do not ‘inflate’ or increase limits annually. The building limit on your home policy will increase incrementally by the automatic application of an ‘inflation factor’ to account for increased costs of rebuilding or repairing your home. However, basic auto limits are not indexed. 

Aside from the inflation perspective, auto insurance has evolved and new coverage options could now be available that were not, when you originally purchased the policy.

As you work through your trip ‘to-do’ list that might include an oil change, sunscreen and a new bathing suit, consider a review of your insurance and the potential value of additional coverage:

  • Rental Vehicle (OPCF 27): Coverage after an accident in a rented or borrowed vehicle. A Mercedes-Benz convertible could be on the itinerary. If your road trip includes higher end rental vehicles, the $50,000 limit should be increased to reflect the value of the rental car. Options are $20 to $50 a year for higher limits
  • Vehicle Replacement (OPCF 20): Commonly $1,000 is provided to rent a car while yours is being repaired due to an accident. Today, a shortage of parts and labour has caused delays in completing repairs. This has resulted in the limit being reached before full repairs are completed, leaving you without a car. Consider increasing this limit to $2,000 for $25 a year
  • Driving Record Protector: Protects your driving record from being affected by an at fault accident, and subsequent increase in premium on renewal. On average, $85 a year
  • Disappearing Deductible: Reduce your deductible annually. A zero deductible applies if there have been no losses the last 5 years. Available from $45 a year
  • Worry Free Bundle: A cost effective collection of the options stated above: disappearing deductible, driving record protection, vehicle replacement and rental vehicle
  • Roadside Assistance: Emergency roadside & driver assistance program. Features include towing, flat tire service, battery boost, fuel delivery, lockout service and extrication / winch
  • Liability Limit: While $1 Million in liability has been the standard, today it is no longer adequate. Particularly if your trip takes you state side, increase this limit to $2 Million. My apologies to the Sunshine State, but Florida has some of the worst statistics. According to Florida Highway Safety and Motor Vehicles (FLHSMV), approximately 200,000 car crashes are recorded every year. That equals more than 500 accidents every day. The cost varies but $6 to $10 a month will provide the protection needed, particularly in jurisdictions with lower, or no mandatory liability coverage for drivers
  • MyMedallion: Request access to our 24/7 Member portal. Access pink cards, securely share information with us, access policy documents or submit a claim
  • Optional Accident Benefits: This is a topic large enough in scale to require its own Medallion Minute article. Review the “Increased Optional Accident Benefits Checklist” included with your renewal or contact us to discuss
  • Identity Theft: While not an option on car insurance, for $15 a year you can add it to your home insurance

Insurance contracts can be complicated. In an effort to be brief, I have opted for ‘plain language’ above. Individual needs, coverage, qualifying criteria and costs will vary. For a full review of your current coverage and detailed options available to you, please contact us!

Wishing you light traffic, no potholes and warm hospitality on your journey,

Sarah Heiser, CIP, CRM,

Registered Insurance Broker

Medallion Group Insurance

Not a first responder?

McFarlan Rowlands can help.