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Protect Yourself Against Cyber Crime in Canada

Cyber crime is on the rise. Knowing the ways online criminals operate as well as methods for protecting yourself can help lower crime rates and keep sensitive data out of the hands of criminals.

Key takeaways

  • Cyber crime is on the rise in Canada, necessitating increased vigilance and awareness.

  • Anyone who uses a computer or a digital device connected to the internet can be a target of cyber criminals.

  • Ransomware attacks are the most common type of cyber crime in Canada.

  • Cyber insurance can help protect you and your family from the financial impacts of cyber crime.

What is cyber crime?

Cyber crime is illegal activity that takes place online through the use of computers and/or by targeting other computers, networks, or networked devices (and their users). Numerous types of cyber crimes exist, ranging from financial fraud to the theft of intellectual property to identity theft.

With hundreds of millions of dollars stolen from Canadians every year, it’s obvious this  criminal activity is having a major impact in our country—and the damage isn’t solely financial. Identity theft, for example, can take years of effort to resolve, creating an emotional and a financial strain on those who are targeted.

What are common cyber crimes in Canada?

Phishing and social engineering

Phishing and social engineering are strategies that cyber criminals use across large groups of potential targets in the hope that some of these targets will be duped.

Criminals who use social engineering tactics manipulate targets into giving up their personal information (such as a PIN or account numbers). Phishing is a form of social engineering in which a criminal imitates a company, brand, or recognizable organization to steal sensitive information from you. For example, you might receive an email in which the sender claims to be your bank or a department store where you frequently shop. The sender may ask for your credit card number, so they can confirm a purchase or they may offer you an enticing prize. Often, they will then use the information you disclose to them for further criminal activities.

Phishing emails usually exhibit telltale signs of fraud. Look out for messages that express urgency and contain statements such as, “You must respond within 24 hours, or we will close your account.” They also often contain requests for your personal information, such as login data, passwords, or PINs. Remember that financial institutions will never ask for this type of information over text or email. Similarly, the Canada Revenue Agency never asks you to provide personal information by email.

Phishing emails frequently offer too-good-to-be-true prizes or deals that ask you to provide sensitive information or pay a fee upfront. They can also contain suspicious links that lead to pages asking for login data.

If you receive an email from an unknown sender that appears unprofessional, or haphazardly constructed, or includes a file to download, it’s likely a phishing scam. Spam filters can help  reduce the amount of phishing emails you receive, but some will still get through. Learn to recognize these warning signs. If you’re unsure about an email, use alternative methods (for example, phoning your bank or credit card company directly) to verify any and/or all online-based requests you receive.

Identity theft and financial fraud

Identity thieves target your personal, sensitive information to use it for fraudulent activities. This can include your name, birth date, address, and social insurance number. Cyber criminals can use this data to apply for a loan or open a credit card account, leaving targets liable for debts they did not incur themselves.

Protect yourself from identity theft by:

  • Never sharing your personal data, unless you’re certain you’re communicating with a legitimate company or organization.

  • Creating strong and unique passwords for online platforms that could be targeted by cyber criminals—think: your email account, your online banking account, and any other site that stores your personal information.

  • Using two-factor login authentication on sites that offer this option.

  • Checking your banking and credit card statements to monitor for unauthorized transactions.

  • Employing a credit monitoring service that will notify you when it detects suspicious activity on your account.

Ransomware attacks

According to the Canadian Centre for Cyber Security, ransomware attacks are the most common threat to online security. This type of attack—where criminals use software to steal, corrupt, or erase data—is on the rise. Once your data is stolen or otherwise compromised, attackers demand a fee (or ransom) from you to get it restored.

Corporations or large organizations are often the targets of ransomware attacks, but individuals can also be targets. Since data is stolen via online channels, storing yours offline or in a secure cloud storage system provides a greater degree of data protection. But it does require you to regularly back up your data, so it remains current. You’ll also want to keep your computer and phone operating systems and other programs up to date, so their latest security features are put to use.

To avoid ransomware attacks, never download a suspicious-looking file (even if it’s sent from a friend) or a file from a source you don’t know.

Online privacy breaches

The internet creates a web of connections in our communities and across the globe. It also creates opportunities for cyber criminals to take advantage of social media users and their right to privacy.

Privacy is an individual issue, and some people are willing to share more about themselves than others. To maintain the level of privacy you’re comfortable with, examine the personal risks you’re taking by sharing too much about your life on social media platforms and marketplaces. Are you OK with strangers having your address, birthday, or phone number? What about your last name?

Most mainstream social media platforms offer privacy setting options that let you control who sees what you share and how much they see. Make sure your privacy settings are aligned with your willingness to share your information with strangers. When installing a new app or signing up for a new platform, carefully read the notifications explaining the personal information these apps will be able to access and the data they’ll be able to collect.

For those who want to go the extra mile in protecting their privacy online, a virtual private network (VPN) service will provide a secure connection between your computer and the internet by altering your IP address and encrypting your internet activities.

Cyberbullying and online harassment

Online harassment and cyberbullying can especially affect younger users of social media platforms and apps. Cyberbullying can take a serious toll on mental health, result in a loss of self-esteem, or even be linked to threats of real-world physical harm.

Create open lines of communication within your family or circle of friends, so those experiencing online harassment have someone to turn to if it happens to them.

Cyberbullies should be reported via the platform they’re using to carry out their harassment. They can also be blocked by targets who are experiencing bullying. The Canadian government has instituted legal consequences for those who engage in online harassment. The punishment for cyberbullying ranges from fines to the confiscation of computers or mobile devices to jail time, depending on the severity and type of harassment.

What is cyber insurance?

Cyber insurance is a type of coverage designed to help protect people from ransomware attacks, data breaches, identity theft, and other cyber crimes previously mentioned. If you’re insured through RBC Insurance, our cyber endorsement coverage can be added to your homeowner’s insurance policy. This product helps to reduce the financial impacts of cyber crime by covering legal costs, the costs of an investigation, or the costs to restore stolen or corrupted data. 

Your cyber insurance company should explain what kind of cyber crime is covered under its policy, who in your household is protected, and whether or not the company uses cyber crime experts when claims are made.

Taking charge of your digital security

Be sure to follow these key steps to keep yourself and your data protected from cyber criminals:

  • Use passwords and login information that are hard to guess and never share this information.

  • Opt in for two-step login authentication, where possible.

  • Monitor your financial transactions carefully and frequently for suspicious activity.

  • Use spam filters and delete emails that have the features often found in phishing scams.

  • Never download email attachments, unless you are certain about their source and content.

  • Think about increasing your privacy settings on social media platforms.

  • Store your data offline or on a secure cloud server.

  • Report cyber crimes or attempted cyber crimes via phone or email. Find contact information here.

Cyber insurance can help protect you and your family from the losses and costs that result from cyber crime. A licensed insurance advisor can help you get a home insurance quote and find the right coverage for your situation.

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*Home and auto insurance products are distributed by RBC Insurance Agency Ltd. and underwritten by Aviva General Insurance Company. In Quebec, RBC Insurance Agency Ltd. Is registered as a damage insurance agency. As a result of government-run auto insurance plans, auto insurance is not available through RBC Insurance in Manitoba, Saskatchewan and British Columbia.

This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.

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Collecting is a popular hobby that comes with the responsibility to preserve historical automobiles. Collector car insurance helps collectors keep their vehicles protected.

Key takeaways

  • Collector cars aren’t defined by their age, but by their condition, market value, and usage.

  • Collector car insurance differs from regular car insurance in important ways, offering higher claims payouts and reduced premiums because of a lower annual mileage.

  • Collector car insurance often sets parameters for usage, mileage, and storage of the car.

What is a collector car?

A collector car isn’t defined by how old it is. For these vehicles, age is often just a number. It’s true there are very old collector cars dating back to the invention of the automobile, but for a vehicle to qualify as a collector car, being made in the previous century isn’t required. For insurance purposes, here are some criteria that define a collector car:

  • It’s appreciating or maintaining a steady market value

  • It’s in good condition or under restoration

  • It’s being stored in a secure, enclosed facility

  • It isn’t used for everyday or backup transportation

What is collector car insurance?

Insurance for collector or classic cars allows individuals to enjoy their vehicle to the fullest, minimizing worry when they take their cars out on the road to a convention or a classic car parade.

Collector car insurance policies usually cover your car up to a guaranteed value, often offering more coverage than regular car insurance.

How does a vehicle qualify for collector car insurance?

Coverage varies between insurance companies, but typical eligibility factors for collector car insurance include:

  • Where the car is stored

  • The way the vehicle is used

  • The eligibility of the car’s driver

Because classic or collector cars are often unique, your insurance company will also want to know the age and model of your car and whether it’s been modified and/or customized.

Coverage will vary based on where you live, with some types of coverage only available in certain locations. Your insurance advisor can help you get the best available coverage for your specific needs and your location.

Collector car insurance versus regular car insurance

Collector car insurance differs from regular car insurance in some essential ways.

Car valuation

  • Regular car insurance covers the value of your vehicle according to its market price. Since regular cars usually depreciate in value, a total loss claim (where your car is stolen or in an accident and damaged beyond repair) means that, in most cases, your insurance company reimburses you for the current (depreciated) value of the vehicle.

  • Collector car insurance offers guaranteed value. The owner of the vehicle and their insurance company come to an agreement about the classic car’s worth, and this determines the amount a collector car owner would receive in the event of total loss (minus any deductible). This can often be higher than market value (called “market appreciation coverage”). Collector car insurance also protects your vehicle when it’s being restored or rebuilt. 

Car usage

  • Regular car insurance is intended for vehicles that are used every day—to get you to work, for running errands, or taking a road trip.

  • Collector car insurance is designed for cars that aren’t used as primary (or even backup) transportation. There can be policy restrictions on how often or far they’re driven, including mileage limits. This type of insurance covers driving for pleasure or to exhibitions, car shows, and other car collector events.

Premiums

  • Regular car insurance prices are calculated based on factors related to the driver (age, driving history, and location) and the vehicle being insured (model and age of the car).

  • Collector car insurance prices are determined by the value of the car that’s agreed upon by the owner and the insurance company. Other factors that affect the prices include vehicle storage and usage.

Storage and preservation

  • Collector car insurance often requires vehicles to be stored in secure (sometimes even climate-controlled) facilities to maintain the car’s value, condition, and structural integrity.

Vehicle modifications

  • Regular car insurance policies may limit and restrict certain modifications (such as lowering the suspension, tinting the windows, or even changing paint colours) to your vehicle, while allowing others. Talk to your licensed insurance advisor before making any modifications.

  • Collector car insurance is designed to support collector car owners and may provide coverage when modifications, enhancements, and upgrades that are aimed at maintaining or improving a vehicle’s value or authenticity have been made.

What is included in collector car insurance?

Consult with your licensed insurance advisor to find out what collector car insurance plans they offer. Coverage usually includes: 

  • Collision coverage that protects your car in case of an accident.

  • Third-party liability insurance that covers an accidentally injured person or damaged property.

  • Comprehensive insurance that protects your collector car from things such as theft, vandalism, or natural disasters.

7 reasons to insure your collector car

RBC Insurance has partnered with Hagerty Canada (Canada’s leading classic and collector insurance program), which offers flexible policies at a great price. Here are some reasons to consider insuring your collector car:

  1. Your collector car’s value is locked in at the time you buy your insurance.

  2. Your policy offers coverage for weekend drives, trips to the movies, car shows, and events.

  3. You can choose your own repair shop if you have a claim.

  4. An appraisal is usually not required.

  5. Multi-car discounts are offered for collectors with multiple collector cars.

  6. Most companies offer market appreciation coverage, meaning that if the market value of your vehicle increases above your insured value and a covered total loss occurs, this type of coverage may pay up to 125 per cent of the vehicle’s insured value.

  7. You may be able to get automatic new purchase coverage, which means that if you’re adding another collector car to your collection, your new purchase may be automatically covered for 30 days.

Check out these collector car insurance benefits. Get an online quote today.

RBC Insurance® is a trademark of Royal Bank of Canada. Used under license.

Hagerty Canada, LLC policies are underwritten by Elite Insurance Company, an Aviva Canada company. Some coverage is not available in all provinces. This is a general description of coverage. All coverage is subject to policy provisions, exclusions and endorsements. Hagerty determines final risk acceptance. Hagerty, Guaranteed Value, Cherished Salvage and Hagerty Valuation Tools are registered or common law trademarks of The Hagerty Group, LLC. © 2023 The Hagerty Group, LLC.

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*Home and auto insurance products are distributed by RBC Insurance Agency Ltd. and underwritten by Aviva General Insurance Company. In Quebec, RBC Insurance Agency Ltd. Is registered as a damage insurance agency. As a result of government-run auto insurance plans, auto insurance is not available through RBC Insurance in Manitoba, Saskatchewan and British Columbia.

This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.

Ever notice how things go south at the most inconvenient times? Welcome to winter. Missed out on cleaning the gutters? Brace yourself for some potential ice-induced drama. And those breezy windows and doors? They’re practically inviting your heating bill to skyrocket.

Similar to maintaining a trusty vehicle, a winter home requires seasonal upkeep. Furnaces demand a check, chimneys cry out for a clean, and gaps in windows beg for sealing. When getting ready for winter year after year, these tasks transform from burdens to dependable rituals.

Key takeaways

  • Your home requires seasonal upkeep to protect it from the elements.

  • Do both an indoor and an outdoor inspection to ensure your home is ready for winter.

  • Your home is one of your most important assets, so consider going beyond seasonal inspections and safeguard it with the right type of insurance.

    How to prepare your home outside for winter

    Here are some ways to make sure the outside of your home and its surrounding property is ready for the colder months.

    Inspect the roof

    Missing a shingle or two? Spot-check your roof, especially after those gusty autumn days, because missing and damaged shingles can cause leaks. Consider a professional once-over for a more thorough examination. If you’ve got critters eyeing your roof as their winter home, maybe it’s time to get professional intervention. You definitely don’t want uninvited guests over the holidays.

    Clean the gutters

    Debris-free gutters aren’t just an esthetic choice; they’re also your home’s first defence against water damage. Ensure those downspouts usher away water, protecting your home’s foundation.

    Insulate all your windows and doors

    Feel a draft? Seal those gaps and consider installing weatherstripping. And assess the overall health of your window frames. They play a bigger role than just looking pretty by preventing drafts and leaks, and keeping things energy efficient.

    Clean your landscaping and prep irrigation systems

    Prep your garden for its winter slumber. Prune trees to keep stray and damaged branches away from your home, stash your gardening tool kit to keep it in working order, and winterize those irrigation systems.

    Drain your spigot and pipes

    Unhooking and properly draining water from hoses is essential to prevent freezing and subsequent damage to spigots and pipes. Avoid expensive repairs by ensuring all water is removed from hoses after each use, safeguarding your plumbing system against potential freezing-related issues.

    Inspect your walls and siding

    A quick evaluation of these can make a world of difference. Boost your home’s warmth quotient by insulating walls and the attic. You may also want to touch up paint, where needed, adding a fresh, winter-ready look.

    Inspect your driveway and walkways

    Address those cracks to keep things level and set up proper drainage, so water doesn’t pool, leaving your walkways as skating rinks. Ice is great in a glass of eggnog, but not on your driveway.

    Get the necessary tools and products

    When winter arrives, it’s essential to be prepared with the necessary tools and products to tackle the challenges it brings. A sturdy snow shovel takes centre stage, ensuring efficient snow removal from driveways and walkways. For larger areas, a snow blower can be a valuable investment, quickly clearing snow with ease. Insulated and waterproof gloves protect your hands from the cold and moisture while you’re shovelling or handling icy surfaces. Bolster traction on icy surfaces with salt, a winter warrior against slippery pathways. Additionally, keep a stash of sand to enhance traction and prevent slips.

    How to prepare your home inside for winter

    The inside of your home needs some TLC before winter, too. Read on for some ways you can ensure things will be cozy and safe in time for the first snowfall.

    Inspect your attic

    Exposed joists can be energy drainers. A little foam or fibrefill insulation might do the trick.

    Check your basement foundation

    A little crack can snowball into a major issue. Insulate exposed pipes, so they don’t freeze, and address gaps around exposed ductwork to keep out drafts.

    Examine your furnace or boiler

    An outage on a cold night? A malfunction—or worse—a boiler leak or rupture? No thanks! Hire an expert to check that everything is running smoothly and remember to replace those filters.

    Check your sump pump

    If you have one, now’s the time for that once-a-year check to ensure everything is running smoothly and to help prevent flooding. It’s better to be safe than soggy.

    Inspect your chimney and fireplace

    A professional cleaning of these enviable features could help you have safe and heartwarming fires all season long.

    Consider a programmable thermostat

    This is a smart way to keep your home toasty and running efficiently, allowing you to set specific temperatures for specific times (such as lowering it while you’re sleeping, for example) and adjust the temp while you’re away from home.

    Replace the batteries in your smoke detectors

    This is definitely not something you want to leave off the list. Make sure the batteries in your smoke detector are fresh.

    Remember, the goal here isn’t just to winterize your home; it’s about creating a cozy and safe winter home. And while you’re at it, home maintenance tips go beyond just physical checks. It’s the satisfaction that comes with knowing you’ve covered all your bases. Your home is one of your most important assets, and safeguarding this haven with insurance is smart, too. Reach out to RBC Insurance at 1-877-749-7224 for comprehensive home insurance coverage.

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*Home and auto insurance products are distributed by RBC Insurance Agency Ltd. and underwritten by Aviva General Insurance Company. In Quebec, RBC Insurance Agency Ltd. Is registered as a damage insurance agency. As a result of government-run auto insurance plans, auto insurance is not available through RBC Insurance in Manitoba, Saskatchewan and British Columbia.

This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.

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Also, recovery rates for stolen cars are going down. In 1990, 90 per cent of car owners who reported their vehicles stolen in Ontario had them recovered by police. That rate of recovery has fallen to approximately 50 per cent, in part because cars are being shipped outside of the country by organized crime rings.

Vehicle theft results in increased costs that affect us all. As car theft increases, so does the cost of car insurance—not just for those who’ve had their cars stolen but for all car owners. Car theft costs Canadians $1 billion each year in financial losses.

Key takeaways

  • Car theft rates have risen dramatically in recent years in Canada.

  • Cars with push-button starters and keyless entry are more susceptible to theft.

  • To keep your car safe at home, park in a garage or secure parking lot.

  • Devices like steering-wheel locks, anti-theft recovery systems, and on-board diagnostic (OBD) data-port blockers can help deter thieves and increase the chances that your car will be recovered.

Car theft prevention measures to take at home

Keeping a car secure while it’s parked at home is something that drivers often overlook. Here are some steps you can take to deter thieves from stealing your car out of your driveway.

Protect your key fob to prevent relay and reprogramming theft

Keyless-entry and push-start vehicles offer convenience for drivers while giving criminals additional options for stealing cars. Relay theft (also known as reprogramming theft) is when thieves use high-tech means to steal your vehicle. Your key fob is vulnerable to radio-frequency devices that can intercept the signal it emits and use that to enter your car. To keep this from happening, store your fob far away from the entrance of your home or keep it in a signal-shielding Faraday box or pouch. These are inexpensive and can be easily purchased online. 

Park in a garage or secure area

The best and safest place to park your car is in a garage or secure parking lot. If you don’t have access to one, there are still a few tactics you can use to make your car less likely to get stolen from your home.

  1. Never leave your car running,even if you’re just popping back into the house to retrieve a forgotten item. Turn off the engine and take your keys with you, leaving doors locked and windows closed.

  2. If you park on the street, turn your wheels in the direction of the curb. This will make it more difficult for your car to be illegally towed. For the same reason, back rear-wheel-drive cars into the driveway and park front-wheel-drive vehicles facing the top of the driveway.  

Lock vehicle doors and windows

Simple steps go a long way toward preventing car theft at home. Always lock your car, keep your windows rolled up, and store items that might further attract thieves out of view and locked inside the trunk.

More car theft prevention tips

You’ll never regret going the extra mile to protect your vehicle from theft. Here are a few items you can use to deter car theft.

Car anti-theft devices

Inexpensive steering-wheel locks act as a visual and physical deterrent that will stop some thieves from targeting your car.

OBD data-port blockers

A data-port blocker or lock prevents thieves from gaining access to your car’s on-board diagnostic (OBD) system, which is what they use to access and control a car’s internal computer, in turn, start the ignition. Check with your car manufacturer to make sure that installing this device does not invalidate your warranty, and do some careful product research before choosing a lock.  

Install an anti-theft recovery system

Anti-theft recovery systems are designed to prevent theft and aid in the recovery of stolen vehicles. Most recovery systems work by hiding small tracking devices throughout the vehicle and provides real-time location updates, enabling law enforcement to track down and recover a stolen car anywhere in North America. Some systems, like Tag, may also etch their logo on the car’s windows to serve as a deterrent for thieves.  Installing an approved anti-theft recovery system may also qualify you for insurance premium discounts! Consult with your insurance advisor for more information on available anti-theft recovery options suitable for your needs and region, and potential discounts.

What to do if your car is stolen

If your car is stolen, contact the police to file a report. Don’t try to retrieve it on your own, even if you have a tracking device installed. Provide police with all the data you have, including video-surveillance footage and GPS information. Be sure to keep copies for yourself of any documents you share with police. Ask the police for a copy of their report for your own files and insurance claim.

Next, contact your insurance company to learn how to file your claim. They’ll guide you through the process and let you know the exact information they need.

Do you want to learn more about car insurance and how to protect your car? Speak with an RBC Insurance Advisor by calling 1-877-749-7224 or get a quote online today.

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*Home and auto insurance products are distributed by RBC Insurance Agency Ltd. and underwritten by Aviva General Insurance Company. In Quebec, RBC Insurance Agency Ltd. Is registered as a damage insurance agency. As a result of government-run auto insurance plans, auto insurance is not available through RBC Insurance in Manitoba, Saskatchewan and British Columbia.

This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.

Canada is a big country, and drivers from coast to coast to coast head out on the roads in all kinds of weather. Conditions can vary widely in winter, depending on where you live and where you’re heading. From heavy rains to sleet, snow, and ice storms, Canadian drivers need to make sure they’re safe on the road—and the right tires go a long way to support safer driving.

All-season tires are designed to safely grip the road’s surface in most conditions, but that changes when temperatures drop below freezing. Winter tires (or snow tires) are specially engineered to remain flexible in freezing temperatures and maintain their grip on the road. Here are some things to consider when choosing the right tires for your car.

Key takeaways

  • The differences between winter tires and all-season tires come down to tread design and the flexibility of the rubber they’re made from.

  • Winter tires offer better traction and an increased ability to grip the road in sub-zero temperatures.

  • All-season tires offer versatility and convenience for people who don’t drive in harsh winter weather.

  • Four-wheel drive is not a substitute for winter tires, because it doesn’t offer the grip and traction that snow tires offer.

What are the differences between all-season and winter tires?

Some of the key differences between winter tires and all-season tires include:

  • All-season tires aren’t designed for temperatures consistently below +7 C degrees Celsius. Their treads can become inflexible in cold conditions and then reduce their grip on the road. Winter tires are engineered to remain flexible and continue to grip the road in very low temperatures.

  • All-season tires are versatile and great for driving in a variety of conditions when temperatures are above freezing. They offer a smoother ride, thanks to their finer tread.

  • Winter tires may help you save on auto insurance, owing to their proven record of better vehicle control and traction.

  • All-season tires are engineered to have a longer lifespan than winter tires, since they’re more versatile and used more frequently.

What are the benefits of winter tires?

They offer better traction

Thanks to design elements dedicated to improving traction on ice and snow, winter tires make driving in winter weather a safer, less stressful experience. These tires feature a tread pattern with deeper grooves and diagonal slits laid out in zigzagging patterns. Together, these slits, called “sipes,” and the tread’s deep grooves give your car more traction on slippery surfaces. Additionally, the rubber that’s used to make winter tires is softer, so it stays flexible and retains its grip on the road in cold weather.

They have optimal cold-weather performance

It’s that softer, more flexible rubber combined with the special tread design that give winter tires their increased capabilities to provide traction on icy  or snowy roads when the temperature dips below freezing. All-season tires tend to become more solid, less flexible, and less able to grip the road in cold winter weather.

They last longer

Swapping out your tires seasonally means that each set will last longer, especially since they’re only being used in the road conditions they’re designed for.

They can come with auto insurance savings

Drivers in Ontario and Alberta can benefit from saving on their insurance when they have winter tires installed. Contact your insurance advisor to learn more about how to qualify for the winter tire discount. In Quebec, the mandatory use of winter tires has been shown to reduce the average number of collisions occurring during the winter months by 19 per cent. Reducing your risk on the road reduces the chances of having to make an insurance claim, therefore saving you from having to pay your deductible and potential future increases in your insurance price.

Winter tire trade-offs

Winter tires are usually more expensive than all-season tires and come with the additional cost of having them changed each year, as the seasons change. Driving on winter tires during warm weather will wear down the soft rubber compound these specialized tires are made from. Winter tires are truly made for winter, and outside of cold, icy, or snowy conditions, they actually offer less responsive handling.

What are the benefits of all-season tires?

They have optimal tread design

If you live in an area of the country that doesn’t experience the extreme winter weather conditions that the rest of Canada does, all-season tires could be your best choice. These tires are engineered for a range of road conditions—from wet to dry to a light dusting of snow. Their treads feature a blend of summer and winter tire design, with winter tire sipes in the centre for travelling through light snow or slush, and wide grooves to help water pass through in rainy conditions. The outside edges look like summer tires and are designed for gripping dry roads while cornering.

They’re suitable for moderate climates

The design of all-season tires makes them a great choice for those who live somewhere with mild winters. They perform well in a wide range of temperatures and road conditions, with the exception of extreme cold and ice.

They’re versatile and convenient

These smooth-riding tires come with the benefit of convenience: there’s no twice-yearly change required, no need to find storage space for the tires that aren’t in use, and there are none of the costs that come with the above. They’re versatile enough to handle many kinds of road conditions safely and effectively.

They can be budget friendly

Drivers may find that using all-season tires is cheaper in terms of both the initial cost and the maintenance.

All-season tire trade-offs

The convenience of keeping one set of tires on your car year-round comes with some trade-offs. In snowy and icy weather, all-season tires simply don’t perform as well as winter tires (they also don’t perform as well as summer tires in hot weather). They don’t last as long as winter tires and they also don’t offer the possibility of a discount on auto insurance.

Are winter tires mandatory in Canada?

Many drivers believe that because their car has four-wheel drive, they don’t need winter tires for winter weather. This isn’t true. Four-wheel drive gives your vehicle the power to pull you out of a snowy ditch after you’ve slid into it. Winter tires grip the icy road and can prevent you from finding yourself in a ditch in the first place.

Winter tires are not mandatory in Canada, with the exception of in Quebec (from Dec. 1 to March 15) and in British Columbia on specific routes marked with regulatory signs (from Oct. 1 to April 30); however, they are highly recommended.

When choosing winter tires, look for the official Alpine/Three-Peak Mountain Snowflake Symbol (three mountain peaks with a snowflake), which designates them as being approved under Canadian National Safety Code.

Choosing between winter tires and all-season tires

Deciding which tires work best for you depends on where you live, how often you drive, and your preferences about the way your car performs at different times of the year.

If you’re familiar with the harsh winters experienced in many parts of Canada and safety is your No. 1 concern, winter tires are your best choice. They’ll support your vehicle’s peak performance in icy, snowy, and cold weather, thanks to their increased traction and ability to grip slippery surfaces.

If the climate you live in features milder winters, all-season tires might best serve your driving needs. They’re more versatile and a good compromise for a wide range of driving conditions.

Contact your RBC Insurance Advisor to learn about the potential insurance savings for having winter tires installed on your vehicle by calling 1-877-749-7224 or get a quote online today.

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*Home and auto insurance products are distributed by RBC Insurance Agency Ltd. and underwritten by Aviva General Insurance Company. In Quebec, RBC Insurance Agency Ltd. Is registered as a damage insurance agency. As a result of government-run auto insurance plans, auto insurance is not available through RBC Insurance in Manitoba, Saskatchewan and British Columbia.

This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.

As hard as it might be to talk about, estate planning is important if you want the satisfaction of knowing that your future and that of your family are taken care of.

Estate planning is when you create legal documents that lay out your instructions so your friends and family can follow your wishes in the event you’re unable to make decisions for yourself or upon your death. It can prevent family conflict from brewing and ensure your property, money, and treasured items are distributed exactly how you wish.

Your estate is one of your greatest legacies to your loved ones, after all. Estate planning allows you to protect the wealth you’ve accumulated over your lifetime while helping you better secure your family’s financial future.

Key Takeaways:

  • Everyone should consider will and estate planning, whether they’re a young adult just starting their career or a retiree.

  • Creating an estate plan can help preserve your hard-earned wealth and ensure your wishes will be carried out after you’ve died.

  • Estate planning could help your beneficiaries avoid taxes, delays, and out-of-pocket costs.

  • By defining how you want your assets to be distributed, you can prevent future disputes or conflicts among your loved ones.

  • Enlist a team of qualified professionals to support you in navigating the complexities of planning your estate.

Who should consider estate planning?

No matter how old you are or how much money you have, you should consider estate planning. Talking about your financial assets and future wishes can feel awkward, but addressing these issues now can help you feel more confident about your future and ultimately the legacy you’ll leave to your loved ones.

Why is estate planning important?

First, estate planning makes sure your hard-earned money goes to the people and causes you care about. Second, having a plan can also ensure the taxes on your estate are properly managed so your family or named beneficiaries get their assets faster and via a less stressful process. Third, it ensures your wishes—from the plan for a dependant to your funeral arrangements—are followed.

Who can help you plan your estate?

Estate planning involves details specific to your financial situation, so you’ll want to meet with the right professionals to help you figure it all out. You can enlist a will and estate planner, a lawyer, and an accountant to help you create the suite of documents you need.

3 benefits of estate planning?

You’ve probably heard nightmarish stories about estates getting held up in court for years or family dramas that ensued after the funeral. That’s the last thing you want your loved ones to deal with when you pass away. By planning your estate, you’re helping to:

1. Preserve your capital

If you’re able to protect your estate from additional taxes, more of your assets can end up where you want them—with your named beneficiaries or donated to causes you care about. Estate planning can help make sure your assets are not held up in the settlement process or affected by fees that your family may have to pay out-of-pocket to settle once you’re gone.

2. Bypass probate

You don’t want your estate to get stuck in limbo in the court system during the probate process. You can work with your estate-planning team to structure your assets in a tax-efficient way. Certain assets in your estate, such as segregated funds, may be able to bypass probate (the process by which a court formally approves a will as the valid and last testament of the deceased person) so your beneficiaries can get their payout faster and decrease or avoid the cost of probate fees and taxes.

3. Protect relationships

Nobody wants the settlement of their estate to cause fighting among their loved ones or their family’s financial matters to be made public. By having segregated funds as part of your portfolio, you may be able to keep your named beneficiaries and your estate information more of a private matter and make sure the proceeds are paid quickly and directly to your chosen beneficiaries. Structuring your wealth distribution—by, for example, putting some money in a trust, delaying the transfer of wealth, or providing a gradual payout over time—can also help ensure that beneficiaries receive a more enduring inheritance.

What you should consider when planning your estate

People typically think estate planning only involves creating or updating their will. While a will— the guiding legal document in the administration of an estate—is critical, there are lots of other components to consider.

First, you need to decide which professionals you want to work with to create your estate plan, and then you have to create a list of your assets before you decide how you’d like them to be distributed when you’re gone. Here are a few things you’ll want to do first.

Gather important documents and information and keep them in a centralized file

Begin organizing your documents to make assessing your wealth, assets, and debt easier and faster. You’ll need the following to get started:

  • Birth certificate

  • Marriage certificate(s)

  • Social insurance number

  • Real estate deeds

  • Will and powers of attorney for property and personal care

  • Safety deposit box information

  • Contact information for your executors and named beneficiaries (called an estate trustee in Ontario and a liquidator in Quebec), advisors, lawyers, and accountants

Prepare or re-evaluate your wills

There are many reasons to write or update your will, but for most people it usually involves some kind of life change. If you have a child or dependants, get married, buy property, or experience a health scare, it might be time to think about what you want for the future.

Take the time to prepare, review, or update your will(s) to ensure it reflects your current wishes. When you update your will, you should also consider appointing powers of attorney (both for personal care and property). A power of attorney is someone you choose to take over your personal affairs if you become unable to manage your estate or personal care. You will also need to consider who will manage and settle your estate after you pass away.

What should you consider when choosing an executor(s)?

Choosing an executor is a big decision and the role is a huge responsibility to put on a loved one. Your executor is in charge of settling your estate according to your wishes once you’re deceased, and the sheer volume of legal, tax, and administrative tasks can be overwhelming. Consider that some complex estates can take years to settle and there can be more than 70 individual tasks involved.

Before you choose an executor, there are a few things to think about:

  • Consider your family dynamic when choosing a spouse, child, or sibling. Many of the tasks will have to take place while the executor is still grieving.

  • Consider the age and health of your executor and whether they’re likely to survive you.

  • Choose someone who is able to handle complex tax, legal, and administrative tasks and has the time to put in the work over what could be a few months or longer.

  • Ask your executor before naming them in your will to ensure they are willing and able to help you manage your estate.

  • Keep in mind that you can also choose a trust company, a lawyer, or an accountant to be your executor if you don’t want to burden your loved ones with a complex task.

Make an inventory of your family’s assets and liabilities

Before you can decide where your assets (and liabilities, like debts) will go when you die, you need to know what you have.

Create a thorough list of your assets:

  • List your physical assets, like real estate, personal property (like jewelry and art), insurance policies, bank accounts, investments, and pensions.

  • Assess the ownership structure of your assets and what the taxable or legal impact may be of joint versus individually owned.

Make a list of your liabilities:

  • This includes debts such as mortgages, credit card debt, personal loans, and unpaid taxes.

Assess your financial preparations

Now that you’ve looked through your assets and liabilities, it’s time to consider where you’re at.

  • Review your pension(s) and investments to ensure they meet your financial goals.

  • Consider your insurance coverage (from life to property) to ensure the amount and type of insurance will cover final expenses and any ongoing needs of your family.

  • You can even arrange a prepaid funeral—if you can wrap your head around it. Not only does it alleviate some immediate stress after your death, it can also reduce the financial burden of funeral costs.

Review your beneficiary designations

You can choose to name your beneficiaries either as revocable or irrevocable. Revocable means you can change the named beneficiary at any time. Most insurance policies use revocable beneficiaries.

Irrevocable means you need the consent of the named beneficiaries to make the change after they’ve been written into your will or designated on an insurance or segregated fund policy. An irrevocable beneficiary is more ironclad.

Estate planning doesn’t have to be a big, scary undertaking. The process can actually help you feel more secure about the future and give you comfort that you’re continuing to help support your family and loved ones after you’re gone.

Speak with an advisor today to learn more about how RBC Insurance can help be a part of your estate planning to protect your financial future and those of your loved ones.

RBC Retirement Investment Solutions

Whether you’re building up your nest egg or ready to turn your hard-earned savings into retirement income, our solutions can help you make the most of your money. Have an RBC Insurance Advisor call you to learn more.

This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.

Any amount that is allocated to a segregated fund is invested at the risk of the contract holder and may increase or decrease in value. RBC Guaranteed Investment Funds are individual variable annuity contracts and are referred to as segregated funds. RBC Life Insurance Company is the sole issuer and guarantor of the guarantee provisions contained in these contracts. The underlying mutual funds and portfolios available in these contracts are managed by RBC Global Asset Management Inc. When clients deposit money in an RBC Guaranteed Investment Funds contract, they are not buying units of the mutual fund or portfolio managed by RBC Global Asset Management Inc. and therefore do not possess any of the rights and privileges of the unitholders of such funds. Details of the applicable Contract are contained in the RBC GIF Information Folder and Contract at www.rbcinsurance.com/gif.

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For many, it’s a time to double down on values and build a strong foundation for the future, but there are many reasons to consider life insurance right now as part of that plan.

Life insurance can be an important part of short and long-term financial planning. Starting early can help you find financial security and protect all that you’re building and working towards now, with other benefits, like more affordable monthly rates and investment growth.

Key takeaways

  • Life insurance is a great way to protect your family’s financial future even when you’re young, by ensuring they can financially support themselves if you’re gone.
  • It may be more affordable to buy life insurance in your 20s and 30s, when you’re likely younger and healthier.
  • Short-term financial benefits can include affordability and coverage without a medical exam, for peace of mind as life changes and your family grows.
  • Long-term financial benefits can include better eligibility (coverage even if you wait until later in life and develop health issues) and ways to grow wealth through investment opportunities.

Why should people in their 20s get life insurance?

Younger people might consider life insurance for the following reasons:

Lower premiums

Life insurance premiums, the monthly or annual fees you pay now to keep your coverage active, are often lower for younger people. It can be much more affordable to have purchased life insurance when you’re younger, than when you are in your 40s or older.

Easier to get approved

There are many factors that affect life insurance premiums but your age and your health are arguably two top factors, so why not lock in low premiums now? When you buy a term policy the rate is set and you pay the same premium for the duration of your policy term.

You plan to own a home

Carrying a mortgage can feel daunting when you’re starting a family and money is tight. Life insurance includes benefits that could help your family cover mortgage costs and afford to stay in your home if something happens to you. Plans that offer investment opportunities can also add equity to your estate and give you more options for getting loans or paying down debts later.

You are getting married or starting a family

Protecting your family goes beyond baby-proofing the house. Life insurance is a way to safeguard your new family’s financial stability, now and in the future, so you can all sleep better at night.

How does life insurance in your 20s and 30s protect your loved ones?

Immediate benefits: You’ll have peace of mind knowing that if something happens to you now, any expenses related to your death will be taken care of. Your loved ones will receive a death benefit, a lump sum of tax-free or tax-deferred money when you pass away. Death benefits can help cover funeral costs and expenses and cover your debts. For example, public student loan debts are forgiven when you die, but private loan debts may still need to be paid off.

Long-term benefits: Signing up for a life insurance plan early means costs will be more affordable over the years. This can help during a time of life when daily expenses can be high, like when you’re paying for daycare costs or rent. Even if you don’t have a family but plan on starting one someday, you can rest easier knowing you’ve planned for their financial stability.

Permanent life insurance plans can have additional long-term benefits. They can help grow your wealth over the years, with a portion of your premiums invested. It can also help with estate planning by covering some of the government taxes and fees that arise when you pass away, and your assets are transferred to loved ones.

What life insurance options are available to younger people

Depending on your goals and life plans, life insurance companies have different options to meet your budget and life stage.

Types of life Insurance

Term life insurance: Term life insurance plans are more affordable plans over a set amount of time (called a term), usually between 10 and 40 years. Coverage expires when your term is up but can be converted to permanent plans later. Term insurance is a popular choice for people at a younger age who may want a lower monthly cost now, as they’re paying off debts or planning other life purchases.

Permanent life insurance: Permanent coverage costs more upfront but covers you for life. Different types of permanent life insurance plans are available including Whole Life, Universal, and T100. Some permanent plans offer investment opportunities to grow wealth as you protect your family.

  • Whole life insurance: Provides lifetime coverage, with monthly fees that won’t change over time. You will still be insured for life, even when your payments end. This can be an option for people who take a “set it and forget it” approach to their finances and investments.
  • Universal life insurance: A more flexible permanent plan that allows you to update your premiums and benefits over time as life changes. This can be an option for people who want to be able to shift plans and enjoy being hands-on with investments.
  • T100 life insurance: A straightforward permanent plan where you pay a fixed amount each month or year for life and no longer need to pay a monthly premium when you reach 100.

Questions to ask when considering what life insurance is best for you:

Do I need life insurance if I don’t have kids?

Life insurance can be an important part of your financial plan, even if you don’t have kids. It can cover expensive funeral costs, debts like private student debts and bank loans, and relieve the financial pressure on other family members or friends. If you do have kids in the future, you can list them as beneficiaries on your plan at any time.

What if my goals change over the next 20-40 years?

You can update your beneficiaries at any time throughout your life, so if you have a new partner or more children, you can ensure everyone is protected.

Can I change my life insurance plan over the years?

Permanent life insurance plans can be adapted over the years. You can pay your set premium or decide to pay more into your plan to increase its value or end its term early.

Will the amount I pay monthly change over the years?

Both term and permanent plans have set monthly payments that won’t change over your lifetime. However, some permanent plans have the option of changing the amount you pay and your coverage.

What is the best age to buy life insurance?

There is no best age to buy life insurance, but purchasing a policy in your 20s and 30s has many benefits, like more affordable costs. It’s usually more affordable to purchase a plan when you’re young and healthy rather than waiting until later when you may have developed health issues.

How to decide what options are right for you?

Getting a policy earlier in life may help you save money, plan for your family and invest in your future. A licensed insurance advisor can help you ask the right questions and develop a personalized plan that will ensure you make the right choice for you and your family.

*Home and auto insurance products are distributed by RBC Insurance Agency Ltd. and underwritten by Aviva General Insurance Company. In Quebec, RBC Insurance Agency Ltd. Is registered as a damage insurance agency. As a result of government-run auto insurance plans, auto insurance is not available through RBC Insurance in Manitoba, Saskatchewan and British Columbia.

This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.