That depends. Car insurance may cost you more in rural Saskatchewan as compared to rural Toronto. However auto insurance still varies for new drivers. There are a variety of factors that affect how insurance companies charge new drivers in Canada. Most insurance companies will charge a new driver according to a premium that is based on a base rate.  However, the base rate is subject to change when factors such as the driver’s location of residence, age, gender, driving history and claims history comes into play. Let’s examine some of them –

Your Gender

Insurance companies charge young male drivers (under the age of 25) more as compared to their female counterparts. No, your insurance company does not harbour any gender bias. In other words, it is not you, it’s the statistics. And statistics clearly show that young male drivers are more likely to drive carelessly and get into accidents than young female drivers who take fewer risks on the road. In general, young drivers in their twenties can expect to pay $3,000 for a full coverage policy.

Your Age

The auto industry depends on younger drivers to keep itself going strong. Young roadsters refers to drivers who are younger than 25. Unfortunately, as mentioned, this also means that your auto insurance will cost you more. Insurance companies charge young drivers more as compared to their older counterparts and it is easy to see why. A young bachelor in his prime is more likely to floor it on the highway and get into accidents as compared to older drivers who have families to support. If you happen to fall under this category, your insurance company will consider you a higher risk and will be legally obligated to classify you as such.

The Type of Vehicle you Own

The amount that you are charged for your auto insurance will also depend on the type of car you drive. For instance, a revved up BMW denotes a higher risk which is why an insurance company will charge its owner a high rate for auto insurance. However, if your car is a slower model like a Volvo, you can expect to pay less to insure it.

Faster vehicles might look amazing, but they are also a road hazard waiting to happen. Of course, a vehicle does not have to be revved up in order for it to be considered risky by insurance companies. High end vehicles are more likely to be stolen, which is why insurance companies charge more to cover them as well.

Driving Record

Your insurance company will obviously charge you more for auto insurance if you have a slew of traffic violations under your belt. Similarly, they will be more amiable towards new drivers who have a squeaky clean track record on the road. The best part is that, you can control this factor when it comes to premium pricing. All you have to do is follow the rules of the road before you apply for auto insurance in the country.

Some of the many insurance plans available to business owners include –

General Liability Insurance

This is by far one of the most common types of insurance policies that businesses sign up for and it is easy to see why. This particular policy ensures protection against damages and ensures defense in the event that any of the business’s employees, services, or products damages any property or causes bodily harm to a third party.

Property Insurance

This type of policy provides insurance against damage or loss of a business as well as its contents. The policy also protects the properties of other parties that may have been affected when the loss in question occurs. However, property insurance is specified according to certain risks. For instance, a business owner who is insured against fire damage cannot collect insurance in case his property is damaged during a natural disaster such as a flood or hurricane.

Worker’s Compensations

Business owners protect their employees against any financial loss that they might incur due to injuries incurred while on the job. The policy also binds employees from suing their employers for the said injuries.

Commercial Auto Insurance

This policy does not cover an employee’s personal vehicle. In other words, it only covers vehicles that are owned by the business and are designed to insure them for damage or collisions. In general, Commercial Auto Insurance covers vehicles that carry a business’s products, equipment or employees. However, businesses can also opt for non-owned auto liability in case most of their employees drive their own car to work but haven’t insured it or have inadequate coverage.

Professional Liability

This type of insurance policy offers coverage for damages or defense in case a business renders its professional services improperly. It is important for business owners to note that this coverage is not covered in general liability insurance.

Business Interruption Insurance

This is a form of business insurance that replaces lost income in case an event disrupts a business’s operations such as a natural disaster or fire.

This type of insurance can come in handy in acquiring insurance against loss of cash flow or damage that might be caused in case a business’s operations are interrupted or halted for a specific amount of time.

Health Insurance

Businesses that are competitive often attract qualified applicants by offering them free health insurance as part of their payment packages. Health insurance offers a considerable amount of benefits for both employees and employers alike.

Data Breach Insurance

Most online businesses, especially those that specialize in ecommerce, often store personal information from clients in order to render services. Of course, this means that they are also responsible for ensuring the safety and confidentiality of that information. However, security breaches do happen nonetheless. A Data Breach insurance policy provides a business protection against the losses that are incurred as a result.

Businesses cannot afford to remain unprotected in this day and age. It’s the law. Insurance is also a legal requirement for your staff. A high level of insurance cover also ensures that your business is a respectable establishment; one that takes the safety of its employees and the credibility of its operations very seriously. The right insurance policies will ensure that your business remains protected.

]]> https://www.halifaxadvisor.com/types-of-business-insurance-coverage/feed/ 0 https://www.halifaxadvisor.com/diversify-your-portfolio-like-a-pro/ https://www.halifaxadvisor.com/diversify-your-portfolio-like-a-pro/#comments Sun, 03 Nov 2013 14:31:20 +0000 http://www.halifaxadvisor.com/?p=42 Smart investors know that it takes a diverse portfolio to receive the best investment returns. After all, holding stocks across a number of countries and sectors gives you a better chance in investing big than you would if you only purchase a few stocks in a single industry.

Why? Remember, putting your bets in more than a single economy can be a recipe for disaster especially if you happen to be new to the investment game. Let’s see how you can expand your portfolio and your prospects –

1. Invest in another Economy

Just because you live in Canada doesn’t mean that you only limit your choice of investments to local markets. Canada’s market is composed of three major industries –

1. Resources
2. Financial
3. Materials

A Canadian fund will either have one or all of these sectors covered. However, if you want to expand your portfolio, you need to explore international options as well. For example, you can search for potentially profitable opportunities in US healthcare or technology.

Depending on one country might be a safe option, however, exposing your choices to more than one country will provide you access to better prospects. Remember, global markets are more correlated now than they were before. The more economies your portfolio covers, the better your chances are of bouncing back if one of them happens to fail.

1. Get to Know Asset Classes

A diverse portfolio holds more than just equities. The smart investor knows about the value of asset classes and ensures that his portfolio includes assets such as bonds and stocks. Experts also recommend that a portfolio should include gold since the market value of the commodity rises as stocks fall. You should be well aware of the rates of return that you should be expecting from the different classes.

Of course, investments can be vulnerable to market volatility. As an investor, you cannot afford for your stock to lose value once the market turns for the worst. However, you can protect yourself against certain incidents such as inflation by using a well diversified set of asset classes.

2. Other Sectors

Speaking of market volatility, it will be in your best interest if you spread your choices across sectors. A certain type of sector may do better than others depending on the state of the economic market. For example, inflation may compel people to save or wait before they have a considerable amount of funds to purchase new vehicles. The auto sector may feel the brunt of their decisions during times such as these.

Successful investing and diversification go hand in hand. While opting for a single economy or asset class maybe a safe option, it will hardly give your portfolio the opportunity to flourish. You run the risk of losing it all if the specific industry you put all your hopes in crashes. After all, there is no telling when the financial tide may turn for the best or worse. Fortunately, some info about the prospects that are available to you and a little bit of caution is all it takes to invest successfully or develop a portfolio that covers a variety of assets.

Table done

For the purpose of comparison, it’s assumed that the balance will be carried for the entire year, that every payment will be made, and any profit will be taken.

Payday Loans

In British Columbia there is a special rule regarding payday loans that requires that a third loan taken out within a 62 day period must be spread over three pay periods.  This has the effect of substantially reducing the total amount of interest paid from 23% per pay period to effectively (23%*3)/5=13.8%.  In the other provinces we consider, it is much more straightforward.    The important thing to take away from this is that while payday loans quote similar rates as credit cards, they are radically higher.

Credit Cards

Credit cards are always quoted in Annual Percentage Rate, or APR.  This is expressed in what is sometimes called simple interest, which doesn’t factor in compounding at all.  Assuming you pay off the interest on your credit card but on average carry a balance, the interest calculations are pretty straightforward.  You take the quoted rate, divide it by the compounding period and multiply it by your balance.  Normally the payment period is monthly but I’ve adapted it to biweekly, which has no effect on the amount paid.  Interestingly, this is the only case where the amount paid actually matches the amount quoted in a meaningful way but only because we were assuming that we were paying off interest all the way through.

Investments

Investments are nearly always quoted in Effective Annual Rate terms, which is to say it factors in compounding.  The thing to notice is that without compounding, it actually comes out lower than the quoted rate.  This is how investment products market themselves to investors, by choosing a means of reporting that maximizes the amount they are able to claim to generate in returns.

If one or more credit card that is currently at their max limit and you visit the mall weekly, you are probably over spending. Two other indicators are, holding your breath when it’s time to check out for fear your card won’t go through, and only making minimum payments on your credit card each month. Another sign is activating new cards only to switch the balance of an older card over to it. Next ask yourself how often you need to borrow money from family or friends. You’re also spending too much if you have to consider selling plasma or blood to buy a new outfit. If you owe more on a credit card then what your total monthly income is, you need to spend less. Finally if there are old clothes with tags in your closet and you resort to a title loan, or payday loan for a source of income you are spending too much. If any of these items describe you, it’s time to set a budget, stick with it, and get out of debt!