DRIVING and INSURANCE RECORD
The more stars you have the lower your premium.
You basically get one star for each year you are licensed, insured, and accident free. (Remember, if you did not cause the accident and not at fault this is not an accident that would reduce your star rating.
Suppose you have had a driver's licence and insurance for the past ten years, however let's suppose you had an accident two years ago that was deemed to be your fault. You would go from ten star to a two star driver. However, this may not be true with every company.
Very recently we have had some companies realize that safe drivers don't become unsafe drivers the day they have an accident. Even though you may have had one at fault claim they may credit you with three or four stars because you have demonstrated that you are a safe driver. Other companies have approached it from a different angle and provide a rider (at a price) that will forgive your next accident so you maintain the star rating you had prior to the accident. This rider is only available to those drivers that have demonstrated a history of safe driving so it is not available to everyone.
If your premium has gone up because of an accident it will be in your best interest to shop around.
There is a star rating for both Liability and Collision
For example - Let's pretend that you backed into a post and damaged your car without injuring anyone or damaging the post you ran into. You would only be claiming for damage to your vehicle. You could be a 6 star for Liability and 0 star for collision.
Please Note: Some companies may provide up to a ten star rating. The conditions below are pretty usual in the industry.
7 Star Risks (Preferred Driver Plan) are those the following conditions apply:
a) The principal operator has held a valid operator’s driving license throughout the past 15 years.
b) No operator of the vehicle has had an “at fault” accident of any kind in the past 6 years.
c) No operator of the vehicle has had a criminal code conviction, a serious traffic conviction or more than 1 minor traffic violations in the past 6 years.
d) Qualifies for Class 01, 02 or 66 (Motorhomes).
6 Star Risks are those where the following conditions apply:
a) Each operator has held a valid license for six consecutive years.
b) Has not been involved in a chargeable accident whether or not a claim has been paid in the past six years.
c) Has not had a criminal code conviction, a serious traffic conviction, or more than 2 minor moving traffic violations in the past three years.
Except that…
1. In the event that there are two or more vehicles in the household each principal operator will be rated on his/her driving record.
2. If there is an occasional underage operator on the policy for which a charge is being made, they will not affect the principal operators driving record.
5 Star Risks are those where the following conditions apply:
a) The Principal operator has held a valid operators license and insurance for five consecutive years.
b) No operator of the vehicle has been involved in a chargeable accident for which a claim has been paid.
c) No operator has had a criminal code conviction or a serious traffic conviction.
d) Has not had a criminal code conviction, a serious traffic conviction, or more than 3 minor moving traffic violations in the past three years.
4 Star Risks are those where the following conditions apply:
a) The Principal operator has held a valid operators license and insurance for four consecutive years.
b) No operator of the vehicle has been involved in a chargeable accident for which a claim has been paid in the past four years.
c) No operator has had a criminal code conviction or serious traffic conviction.
d) Has not had a criminal code conviction, a serious traffic conviction, or more than 3 minor moving traffic violations in the past three years.
3 – 2 – 1 – 0 Risks are those rated where a principal operator has held a valid operators
license and insurance consecutively for the period being applied for.
Exceptions
New drivers may be credited with one star even though they have not held a drivers license or insurance for a full year.
New Drivers that have completed an approved driver training course will be credited with a 3 star rating as long as they remain accident free.
ACCIDENT DEFINITION
Accident means an occurrence resulting in bodily injury or damage to property of others,
or collision damage arising out of the ownership, use or operation of an automobile, in
consequence of which:
1. An amount has been paid in respect of:
i) Bodily injury or damage to property of others; or
ii) Collision damage or
2. A loss remains unsettled or unpaid; or
3. A civil suit remains pending against the applicant
NOTE:
1. Claims expenses only, payments under Accident Benefits coverage only, medical first aid expenses only, or a combination thereof, shall not constitute a loss under this definition, with the exception being a loss involving a pedestrian.
2. Only collision damage under the All Perils coverage shall affect the rating of All Perils.
3. A loss under Bodily Injury or Property Damage shall not affect the claims rating for All Perils or Collision, nor will a “collision only” loss affect the claims rating of
Bodily Injury and Property Damage, with the exception of those risks rated at driving record five (5), six (6), or seven (7).
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