Protective measures

Before leaving the province, travelers should ensure that their auto-insurer will cover them for the where they are driving, the purpose they are driving, and the duration they are outside of their own jurisdiction. In some instances, coverage may change, or the insured person’s insurance premium may also change given their potential travel plans. This is especially important for Snowbirds who are typically gone longer than a quick trip down to Disney Land.

“The first step is having that conversation with your auto insurance provider to make sure your policy will extend coverage to you for the duration of time when you’re in the States,” Charles says. “It’s something many people don’t even think about, but you don’t want your policy to be void because you didn’t notify them of an upcoming trip, which could affect premiums or coverage.”

This is of particular importance given the discrepancy between a typical Ontario auto-insurance policy and a run of the mill USA auto-insurance policy. In Ontario, insured drivers generally have a Family Protection Policy of at least $1,000,000. Generally speaking, American’s have less. That’s something that’s proven true in Charles’ experience, who says she sees policies ranging from $50,000 to as low as $15,000 — and if you’ve sustained a significant injury, “that’s just not going to be enough.”

Depending on the injured person’s age, earning history, and degree of injury, a lawsuit resulting from a car accident can be in excess of several million dollars. This is why Charles’ suggests that insured drivers should discuss with their insurance broker purchasing additional coverage under their Family Protection Policy, and increasing their funding under their Statutory Accident Benefit insurance. Charles indicates that whenever a person is underinsured, if you are hit by them, your own auto-insurance through your Family Protection Policy will kick in to contribute the rest of your damages to ensure you are fully indemnified, assuming you’ve purchased enough coverage.

“Before you take a trip down to the States, it’s an important conversation to have with your insurer to see if you need more insurance based off of your life circumstances,” Charles says, adding that in general, it’s a good idea to make sure your family protection policies are large enough for your lifestyle.