Wedding Bells

Insurance essentials for couples

In the excitement of getting married or moving in together, many couples forget to discuss their insurance coverage.

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In the excitement of getting married or moving in together, many couples forget to discuss their insurance coverage. And it’s an important discussion to have, because at this stage of your lives you could be buying new homes, cars, and even wedding rings, as well as developing financial reliance on each other for your quality of life.

Once you take all that into account, it’s easy to see how insurance could be one of the wisest investments you’ll make. Without it, one unforeseen incident could jeopardize your financial security. Here are some tips to help you get the most from your insurance coverage:

• Don’t skimp on liability coverage. Liability coverage helps protect you financially if you or another driver on your policy are found liable for injuring someone or causing damage to another person's property or automobile. Minimum coverage under law in most provinces is $200,000, but in an at-fault car accident even $1 million in liability coverage could be used up quickly.
• Check with your insurance company when buying a new car. Make sure you budget for your insurance premiums as well as your car loan or lease payments. A call to your insurance agent before you buy can help you avoid surprises later.
• Take stock when buying a new home. The purchase of a new home calls for a full assessment of your insurance needs. Mortgage or loan insurance can help pay your debts in the event of death or disability. Contents insurance provides replacement value of your possessions in the event of theft, loss, fire, or certain other circumstances.
• Reassess coverage when you make a major purchase. Don’t forget to update your home insurance policy to reflect new purchases such as a wedding ring or furniture. You can purchase additional coverage, known as a rider, for specific valuable items like jewelry.

Did You Know?

An average home insurance policy provides up to $5,000 in coverage for jewelry; however, a diamond ring alone can easily exceed that amount. In fact, that same policy may only cover the replacement of certain types of losses, such as theft, but not for unexplained losses such as the diamond falling out of a ring.

• When you go, take travel insurance with you. The last thing you want to worry about on your vacation or honeymoon is lost luggage, trip cancellation, flight delays or unexpected illness. Travel Insurance may help ensure that a mishap doesn’t spoil your trip.
• Purchasing or expanding a life insurance policy – Couples should adjust their life insurance policy after marriage to ensure their spouse is the beneficiary and would be secure in the event of a serious illness or death. Keep in mind that life insurance is usually less expensive if purchased when you are younger.
• Review your insurance coverage once a year. As your life changes, so do your insurance needs.

Definitions

Homeowner’s insurance: If you own a house, this type of insurance is required to cover repairs or replacement value of the structure in case of fire or certain types of damage.

Disability/health: Protects your income stream if you are unable to work because of illness or injury.

Contents insurance: Provides replacement value of your possessions in the event of theft, loss, fire, or certain other circumstances.

Deductible: The amount you pay out-of-pocket for a claim before your insurance pays. Higher deductibles can lower your premiums, but make sure to choose an amount you can afford in the event you have to make a claim.

Policy options that will help you reduce expenses at claim time:

• Accident Protection Endorsement prevents your premiums from increasing after your first at-fault accident, protecting your driving record, and usually costs less than $5 per month.
• Waiver of depreciation guarantees that no depreciation will be applied to your new vehicle for 24 months - so depreciation is not taken into account when settling a claim to cover loss or damage to your vehicle
• “Loss of use” coverage covers the rental vehicle cost if your car needs to be repaired or replaced after an accident, and costs as little as $20 per year.

RBC Insurance offers a variety of discounts that can help you save on premiums and at the time of a claim.

• Save 15%¹ when you insure more than one vehicle with us.
• Save 5% when you get an online quote.² It’s a fast, easy way to get an initial cost. You can then review your options with one of our licensed RBC Insurance advisors.
• Save up to 12% when you insure both your car and home with RBC Insurance.³
• Choose a deductible that is right for you.² Selecting a higher deductible can lower your premiums while a lower deductible can save you money at the time of the claim.

Authorized RBC Insurance® Advisors, are available across Canada to help you choose the right life insurance, health insurance and Guaranteed Investment Funds for your needs. Speak to one at your local RBC Insurance branch or find one using our Insurance Advisor Locator.

Legal

1 This discount applies to certain sections of your policy and to certain classes of auto insurance.
2 The Online Discount is not available in all provinces, and where available varies by province, type of insurance, renewal term, and auto plan membership. Other exclusions and limitations also apply.
3 Certain conditions apply. This discount also excludes endorsements – any additional (usually optional) enhancements that you add to your policy.
4 On qualifying vehicles.