Christmas and the holiday season are fast approaching. As you look for gifts for those people special to you, some gifts, in a round-about way, could have an impact on insurance rates for the person receiving the gift.
Here are 5 gift ideas that are tremendous and fun and can be written about on an insurance blog.
Cell Phone
A cell phone itself doesn’t inherently affect insurance premiums. If a person happens to be using said cell phone while driving, that brings in the potential for a couple different financial implications.
The fines and penalties for distracted driving in Canada vary province-to-province.
Aside from the above fines, insurers are beginning to more fully understand the direct correlation between those who drive distracted and the chances of being involved in an at-fault accident. In fact, one of Canada’s largest insurers is now classifying distracted driving as a major conviction – the same classification as driving while impaired.
Car
If your gift to a special someone is a new vehicle, remember to factor in a potential increase in car insurance premiums.
If a vehicle is leased or financed, full (collision and comprehensive) coverage is mandatory on the vehicle. The minimum coverage required in Canada, often associated with older vehicles, is third party liability coverage.
If a person is needing to upgrade their coverage to accommodate their new vehicle, their premiums will increase. Keep in mind, your gift could add hundreds of dollars in added car insurance expenses.
Fitness Equipment
While Fitbits and other gadgets are all the rage, especially as stocking stuffers, if you decide to give into the infomercial featuring the latest and greatest home gym equipment, know that the person receiving the gift will need to update the contents on their tenant policy.
Even with the ‘’easy’’ payments and all the stuff you get included for ‘’free’’, odds are the equipment is worth at least a few thousand dollars (see Bowflex TreadClimber, Body-Solid Gym System, Nordic Track FreeStride Trainer, etc).
Include a friendly reminder to make sure their insurance covers their new fitness equipment, in the event it gets stolen.
Hoverboard
Hoverboards are really cool. They can also cause fires. Really.
A CHCH news report, from September 2017, detailed how a hoverboard caused a fire that resulted in $150,000 in damage to a Burlington, ON family’s home.
The hoverboard was charging when a spark started a fire that burned down the home’s garage.
If you're gifting a hoverboard to a spouse or child, double-check the fire coverage on your home insurance policy. It would be a shame for the latest toy to cause a little more trouble than bargained for home
Drone
It is spectacular the quality of videos and photos drones can produce. Insurance wise, there’s a big difference between using a drone for personal use versus business use.
In order to insure a drone, one needs a stand-alone drone policy.
A personal use drone is a drone that weighs less than 5 kilograms. No license is required to fly a personal use drone. Under a stand-alone drone policy for personal use, liability coverage is available.
A commercial use drone is a drone that weighs more than 5 kilograms and is used for business. A drone license is required to operate a commercial use drone.
A commercial use drone policy has higher premiums than a personal use drone insurance policy.
