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Pa Page 12 TERRACE BAY/SCHREIBER NEWS Wednesday, April 19, 1989 Changes to auto insurance explained The driving records of the peo- ple who use your car - including their accidents, convictions and years behind the wheel - will be important factors in deciding how much you pay for coverage under the new Ontario car insurance scheme. Designed and regulated by the new Ontario Automobile Insurance Board, a government agency, the program spells out various rate levels insurance com- panies must charge motorists, including surcharges for recent accident claims and driving con- victions. The plan, going into effect by June 1, eliminates drivers' age and sex as criteria for setting pre- miums. Besides driving records, the new system decides insurance prices according to vehicle type, geographical territory, vehicle use and annual distance driven. Car insurance expert Lea Algar explains that the new sys- tem looks back a basic six years in considering driving records. "A vehicle's drivers are classi- fied in a series of rate categories according to their years of experi- ence and whether or not they have had formal driver training," says Algar, manager of insurance services with the Insurance Bureau of Canada. Training lowers rate The basic experience classes are: under one year licensed; one year, up to and including three years; over three years, up to and 'including six years; and over six years. More experienced drivers are considered lower risks and generally pay lower premiums. Completion of driver training courses also results in lower rates within each experience group. The experience rules apply to principle and secondary drivers of the insured vehicle. Algar notes that the new plan eliminates the former "occasional driver" classi- fication - typically applied to drivers under age 25, who statisti- cally have more accidents. Now such drivers are consid- ered secondary users. Where sev- eral secondary drivers might use a car, the least experienced - con- sidered the highest accident risk - will be the designated secondary driver and a suitable surcharge added to the premium. Surcharges can also be added for car insurance claims and for driving convictions recorded over the previous six years. These will be in set dollar amounts, rather than the percentage surcharges used in the former insurance sys- tem. Algar explains that accident claim surcharges apply only for accidents in which the insured driver was responsible. "They're calculated using a matrix that takes into account the number of claims paid and how long ago they happened. For example, one claim a year ago can result in a surcharge, but four claims more than six years ago do not count." One 'free' claim The new plan also provides for "forgivencss" of one claim per vehicle of up to $700 during the policy period. "That means you can make one $700 claim without a sur- charge. But if the claim is for more, a surcharge ranging up to $1,700 will be added when the policy is renewed," Accident records usually fol- low individual drivers, to be counted as risk factors when insuring the cars they drive. But if your car has an accident while being driven by an out-of-town visitor who isn't likely to drive it again, the resulting claim record counts against your vehicle. Under the car insurance plan, driving convictions are sur- charged by three levels of severi- ty. At the lowest level, called "minor" offences, are such infrac- tions as speeding, making an improper turn, failing to stop for a stop sign and not using a seat belt. The next level covers "major" offences, including such charges as failing to stop for a school bus, careless driving, failure to report an accident and driving while under suspension or without insurance. The worst offences are labelled "serious" and include impaired driving, failure to pro- vide a breath sample, dangerous driving and racing on public roads. Surcharges are calculated according to a graduated scale that measures the number and severity of driving convictions over the past six years. Convictions increase remium cover For example, a recent serious conviction adds $115 to the cost of collision coverage, $35 to the accident benefits premium and $320 to third-party liability cov- erage. "A driver is allowed two free minor convictions in any three- year period without facing a sur- charge." Algar notes. "But if those two minor offences are combined with one serious con- viction, all three are surcharged." She notes that the surcharging system is intended to make the relatively few drivers who are most likely to cause accidents - and insurance claims - pay premi- ums that reflect that risk. "Between 80 and 85 percent of Ontario's drivers are conviction- free at any given time, and the great majority of convictions recorded are for exceeding speed limits. So it's likely the conviction surcharges will affect relatively few motorists." Next: Seeking ways to check the rising costs of car insurance. ONTARIO CAR INSURANCE AND DRIVERS' RECORDS QUALITY DRIVER TRAINING DEINING SCHOOL YEARS LICENSED CONVICTIONS = 2 -- Cay = Peeer4 A © ACCIDENTS : POLICE REPORT J. DOE SPEEDING 127 K.PH 100% Acrylic White, Pink Receiving Blanket Hudsons Bay Company Save 20% off Newborn Dresses Reg. 15.98 Sale 12.97 1 pce Jumpsuits Poly/Cotton Blend Asst'd Plains Reg. 10.48 Sale 7.97 Infants 2 pce Hooded Knit Set Reg. 12.98 Sale 9.97 Infants T-Shirts Short Sleeve Asst'd Motifs Reg. 5.29-6.29 Sale 4.47 Dorel Safe-T-Ryder 3 in 1 Car Seat Navy, Grey Reg. 89.98 Sale 69.97 By Esmond 75cm x 100cm 100% Acrylic, Loom Woven Reg. 6.49 Sale 4.97 » Fancy dresses in a variety of fabrics, styles and colors. 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