For more than five years, Frank Hunt’s moving company has been a pillar of his community in Barrie, Ont., but he says his award-winning business is now on its knees — and he blames his insurance company. 

“They’re killing us. They’re literally shutting down the business,” he told CBC News. He says onerous demands from his insurer have led to a loss of about 75 per cent of his revenue.

Hunt, 73, says his company pays about $10,000 for commercial vehicle insurance each year. He says there have been no claims or accidents. “Not even a broken windshield,” he said.

His problems began in May, when his insurer suddenly demanded his drivers upgrade their licences to beyond what Ontario’s Ministry of Transportation requires. He and his drivers are legally allowed to drive the company’s five-ton moving trucks with a basic G licence.

“This year, the insurance company comes up with, ‘Oh, you’ve got to have a different licence, a D licence, or you can’t drive.’ I only have a G licence, so I can’t even drive my own vehicles anymore,” Hunt told CBC News.

The Insurance Bureau of Canada says if small business owners want to know why their policy requirements are getting tighter and their premiums are getting higher, they should look no further than COVID-19. The bureau says insurers “have been confronted with increased costs” due to the pandemic.

But that’s little consolation to Hunt and his wife Karina Shaak, 65. They tried to switch insurance companies. They were told they couldn’t, unless they agreed to pay much higher premiums — as much as $25,000, more than double what they previously paid.

So the couple hired new drivers with D licences, or higher. Their insurer refused to cover them, though, claiming the new hires didn’t have three years

ERIE, Pa., Oct. 12, 2020 /PRNewswire/ — Whether shopping for electronics, furniture or a new car, we all love getting the most bang for our buck – and insurance companies know drivers are looking for bargains when it comes to their car insurance. That’s why many insurers advertise low monthly rates to convince customers they’re getting a great deal. But in the event of an accident, that super-cheap auto insurance might leave you stuck paying out of pocket for car repairs or medical bills.

Cheap auto policies can often fall short, but there are ways to save on your premium without compromising your coverage.

Erie Insurance helps sort it out with a four ways cheap auto policies often fall short, and nine ways to save on your premium without compromising your coverage.  

What are the downsides?

  • You could pay more out of pocket later. When you’re found at-fault for an accident, you’re on the hook to pay for anything your insurance policy doesn’t cover. The cost of repairs, medical bills or legal fees from a multi-car pileup can get expensive. Even something simple like a fender bender can cost thousands of dollars in parts alone.
  • You take on more risk. If you run out of cash to pay what you’re responsible for, that could put your savings, investments or assets like your home or car at risk.
  • You get fewer perks. You typically pay a little extra in premium for features like rental car expense coverage, emergency roadside service coverage or a diminishing deductible. But you’ll be happy to have those little extras there when you need them.
  • It’s less personalized. A good insurance agent can help tailor your policy with endorsements and other optional add-ons to be just the right fit for your life. For example, customized coverage can come in handy when you drive occasionally for Uber or Lyft.
  • Ways to save with ERIE:

    The third-quarter reporting cycle is finally here. PACCAR Inc. PCAR is set to kick off the earnings season for the Auto-Tires-Trucks sector next week.

    Per the Oct 9 Earnings Preview, the auto sector’s earnings tanked 123.5% on a 49.7% revenue slump during the second quarter. However, things seem to be gradually looking up for the sector. While earnings and revenues are expected to have declined in the September-end quarter as well, these declines are likely to be less severe. In the third quarter, overall earnings and revenues for the sector are projected to fall 35.1% and 4.8%, year over year.

    Dismal Q2 Performance

    The coronavirus outbreak hit the auto industry hard in the latter half of the first quarter and the second quarter. The pandemic hurt the industry significantly amid factory closures, low footfall at dealerships and supply-chain distortions. Depressed demand of vehicles amid waning consumer confidence has dented the margins of most automakers across the globe. Amid the coronavirus crisis-induced lockdown, with thousands of people working from homes, consumers had put off big-ticket purchases like cars, causing the global auto sales to plummet during the April-June period.

    Per the S&P Global Market Intelligence analysis, U.S. auto sales plunged 33.3% year over year in the second quarter, with the overall non-seasonally adjusted U.S. vehicle sales for the period summing up to 2.95 million units, down from the 2019 figure of 4.42 million units. Notably, vehicle sales from each of the Detroit 3 carmakers — Ford, General Motors and Fiat Chrysler — dropped year over year during the June-end quarter.

    U.S. Auto Industry Gathered Momentum in Q3

    The pandemic has significantly transformed the auto industry. With social distancing becoming the new normal, people are avoiding public transportation, which makes private transportation the need of the hour. Remarkably, U.S. auto sales are

    Although the government postponed deadlines for tax payments by 15 days, the report noted that a suspension may help several industries.

    It has also recommended the implementation of a facility to deposit GST to the government treasury on cash basis and suggested dispensation of credit reversal requirement on expired stock during this period. Among other suggestions, the report has also recommended expanding the tax base under GST.

    It noted that a reason for the implementation of GST was to levy a single tax on all goods and services, resulting in free-flowing credit in the country. However, at present, certain items such as petroleum products — petrol, diesel, aviation turbine fuel and natural gas — and alcohol are outside the GST net.

    To reassure states regarding protection of their fiscal autonomy, the government had initially decided to keep petroleum products, which form a major part of state revenues, outside the ambit of GST till revenue collections stabilise.

    However, it is notable that due to the inward supplies of these sectors being subject to GST and the output supplies being beyond the scope of GST levy, the tax incidence in these sectors is significantly high, it said, adding that moreover, their compliance-related requirements have become fairly complicated.

    “This is to some extent defeating the Government’s purpose of implementing the new tax regime. Representations have been made to bring industrial fuel, including natural gas and ATF, under the GST net,” it said.

    Noting that bringing the petroleum sector within the GST net requires more consensus-building, however, in the absence of constitutional limitations, it is only a matter of time before this shift takes place and states are assured that they can maintain their levels of tax revenues.

    Pratik Jain, Partner & Leader, Indirect Tax, PwC India says that the country embarked upon a


    Clearcover

    MarketWatch has highlighted these products and services because we think readers will find them useful. This content is independent of the MarketWatch newsroom and we may receive a commission if you buy products through links in this article.

    Adults in their twenties and thirties are now facing the same financial responsibilities their parents once did as they become homeowners, car owners, and insurance holders. While these financial matters can seem complicated, millennial adults have the added benefit of improved mobile apps to simplify banking, money transfers, and now, auto insurance.

    Clearcover Car Insurance offers just that: clear, comprehensive, and affordable auto coverage at a better price than its competitors. “Clear” also describes how easy it is to use Clearcover’s digital platform: everything from purchasing your policy to managing an insurance claim can be done through their user-friendly mobile app.

    Clearcover simply designed an app that makes sense to millennials: these days, there’s no need for in-person agents and phone calls when we do pretty much everything from our smartphones. And if you can do something that’s easier and a better value, it doesn’t make sense to pay for a price markup just for an insurance agent.

    Mobile apps that allow users to make their own educated financial decisions aren’t so new: Robinhood makes stock market investment simple by allowing you to invest directly in the market through a mobile app. That strategy works for this generation of adults: Robinhood has over 2 million views in Apple’s App Store, and it enjoys a 4.8-star rating. Similarly, Clearcover enjoys 4.7 stars from nearly 1,000 satisfied customers in the Apple App Store. Over and over, user reviews describe Clearcover as “the best insurance ever”, with user Sobhan H. saying, “I am honestly really surprised to see that Clearcover is not the #1