Why Use a Licensed Insurance Broker?

Are you thinking about purchasing an income property or renting out part of your home for an extra boost to your income? It is important to consider the additional risk you will be taking on and to make sure you will be properly covered by rental property insurance, otherwise known as landlord insurance.


What is a licensed insurance broker?

A licensed broker is a registered independent insurance professional governed by the Registered Insurance Brokers Act in Ontario. Brokers sell general insurance like coverage for your car, home, business, etc. They are not tied to one insurance company, so brokers can shop around and provide independent advice that is in the best interest of their client.


What is required to become a licensed broker?

In Ontario, insurance brokers are regulated and licensed by the Registered Insurance Brokers of Ontario (RIBO). To be licensed, your insurance broker had to study and complete the Level 1 Exam (with a pass rate of only 62% in 2019) and be employed at a RIBO licensed brokerage. In addition, they cannot hold another form of employment or participate in a secondary business and must only be employed as an insurance broker. To maintain their license, your insurance broker has to earn 8 hours of continuing education credits each year in RIBO accredited courses, adhere to the RIBO code of conduct, and be bonded and covered under a professional liability policy.


Is being licensed the same as the designations next to my broker’s name?

You may see CIP, CAIB, or CCIB (to name a few) after your broker’s name and wonder what these mean or if they are the same as being licensed. These are additional designations and are different from being licensed by RIBO. Just like other professionals, many insurance brokers are dedicated to their profession and want to stay up-to-date and learn more about their industry. Each designation has their own course requirements and final examinations but it does not mean that they are licensed to sell insurance.


How do I know if my broker is licensed?

You can do quick search on the RIBO website using their first and last name, but keep in mind that they can be licensed under their legal name but practice under an English preferred name.


What are the consequences of buying insurance through an unlicensed broker?

The Financial Services Regulatory Authority of Ontario (FSRA) advises against purchasing insurance from unlicensed brokers. Customers of unlicensed brokers will not be protected under Ontario’s Insurance Act and the regulations that govern Ontario’s licensed insurance companies and brokers.

The BrokerTeam promise

At BrokerTeam, our team of trained and licensed professionals will always represent your best interest and ensure your most valued assets are protected


Increased Car Insurance Premiums: True Cost of Speeding Tickets

For many of us, driving during the pandemic lockdown has meant less traffic on the road. But unfortunately, many are using the empty roads as their personal speedway. Within a single week in July, the Toronto police ticketed more than 3,000 drivers for traffic-law violations, the majority of them for speeding!


Cost of Speeding Tickets

Speeding comes with a price and costs you money. The first thing that comes to mind is the fines imposed by the authorities. Let’s use the city of Toronto as example and see how the set fines break down:

  • Speeding over 1-19 km/h => a fine of $5 per km
  • Speeding over 20-29 km/h => a fine of $7.50 per km
  • Speeding over 30-49 km/h => a fine of $12 per km

Speeding over 50 km/h => an automatic court summons for the vehicle owner

As an example, speeding over 49 km/h could result in a fine of up to $718, including a set fine of $588, a victim surcharge of $125 and $5 in court costs.

For stunt driving in Ontario, the convicted could be fined up to $10,000, and end up with six months in jail and a 2-year license suspension. Before we even get into the speeding ticket insurance increase, it already doesn’t seem worth to have leadfoot.


Speeding Ticket Insurance Rate Increase

Other than immediate fines or suspension, these drivers also face major increases to their car insurance as a consequence of their actions. That makes sense since insurance companies calculate premiums based on the risk it takes to insure the driver and their vehicle.

So of course, bad driving habits such as speeding tickets result in higher costs to insure that driver. Other than safety, it’s one of the main reasons to drive carefully: keeping your insurance premium low.

Different insurance companies have their own calculations on how they rate speeding offences. But let’s take a look at how speeding tickets can increase your auto insurance premiums.

For auto insurance rates, multiple factors come into play, such as gender, age, vehicle model, usage, and home location, etc. But on average:

  • 1 minor traffic ticket could lead to a 15% increase in your auto insurance premium
  • 2 minor tickets could be a 30% increase
  • 1 major offense such as stunt driving could result in a 40% increase
  • Got 2 majors tickets? You could be looking at an insurance increase of 75%

Aftermath Costs of Speeding Tickets

Having speeding tickets will not only increase your car insurance premium for the first year. Did you know that traffic tickets remain on your driving record for three years? Some companies look at your driving record from the past six years.

This means you can expect to pay a higher price for your car insurance for many years after, even if you keep a clean record after the speeding ticket. You would also lose the conviction-free discounts that you previously enjoyed for years.


Becoming a High Risk Driver

If you have multiple major traffic tickets or even criminal tickets on your record, you could be labeled as a high-risk driver by insurance companies. Not only will you see a speeding ticket insurance increase, but high-risk drivers may not be able to get insurance from the regular market. This means you have very limited choices, need to pay higher premiums, and may need to put down payments for your policy.


If you want to know more about how speeding tickets affect insurance, contact us today. We can provide you with auto insurance options that are available to you. You can also use our online quoter to get a quick estimate of how speeding tickets affect your premiums. And remember: drive safely.


Why CAA Insurance May Be Right for You

With CAA Insurance, you are being covered by a brand with over 100 years of history helping drivers stay safe on roads across Canada. You can trust CAA Insurance to provide the coverage you need.

CAA Insurance offers a full range of auto, property, travel, life and even pet insurance to safeguard you and your family members, furry ones included. With BrokerTeam Insurance, our knowledgeable brokers will find the right mix of insurance products for your peace of mind. We are here to help every step of the way from questions about coverage, to policy changes, to claim situations.

Exclusive discounts and perks with a CAA Membership

While you don’t have to be a CAA Member to get CAA Insurance, by getting a CAA Membership you can receive exclusive insurance savings of up to 10% on your home insurance and 5% off your auto insurance.

In addition to roadside assistance any time across Canada and the US, you will also receive exclusive savings on everyday purchases and discounts at restaurants, hotels, attractions and more.

For even more home and auto insurance savings, you can earn CAA dollars from shopping at select partners and redeem them towards your CAA Insurance renewal premium.


Added value of CAA Insurance

With a 24/7 claims line and online claims portal, CAA Insurance puts you first in your time of need.

In keeping with their pledge to put their clients first, CAA Insurance provided relief during the financial stress of COVID-19. CAA Insurance offered 2 auto insurance relief benefits that clients saw automatically through credits or cheques in the mail, as well as 10% rate reductions for both home and auto insurance policies.

For more information on CAA memberships or if you have any questions, call Shahin Shirdarreh Team