Survey finds Canadians know their insurance despite some not reading their policies

Published: July 30, 2019

Updated: September 1, 2019

Author: Luke Jones

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A recent study has found around a quarter of Canadians do not read their insurance policies. According to a belairdirect survey, 23% of home insurance and 25% of auto insurance customers have not read their policy. Ironically, the things these customers are most worried about are what their policy covers and how much it costs.

Despite this contradiction, the study also showed Canadian home and auto insurance customers who participated in the survey are knowledgeable about their policies.

“Canadians are becoming savvier when it comes to understanding their insurance policies, but we know that they still have questions. Insurance is complex, and we are committed to simplifying that experience to help educate consumers,” said Anne Fortin, Senior Vice President, Direct Distribution and Chief Marketing Officer. “Having proper coverage is key to protecting the things that you care about, and our goal is to ensure Canadians understand what they need for home and auto insurance.”

Understanding home and auto insurance policies is important for customers as it helps them know when they are covered and when they are not. Also, knowing what a policy provides will help with understanding costs.

More information from the belairdirect study includes:

  • “Three-in-ten Canadians say understanding insurance is like their daily commute – tedious, but necessary, while 16% think it’s like watching a boring movie – you want to turn it off, but you want to know how it ends.
  • 31% of Canadians with home insurance never take inventory of their property!
  • Nearly one-in-ten Canadians wonder if they are covered by animal damage – either by rodents to their home (8%) or large animals, like a moose, to their car (10%).
  • Four-in-ten Canadians with home insurance believe their policies automatically protect all of their valuables, while only 36% believe they are covered for a sewer back-up.
  • 39% of Canadians think they are covered for their golf bag if it’s in their car when stolen, and 38% think they are covered if a drone crashes into their car windshield.”

Auto Insurance

Most Canadians (98%) with auto insurance understand at least one aspect that can directly impact their premiums. Those include driving record (87%) and claims history (85%). Other known premium influences include how often the vehicle is used, location, and risk of theft. However, only 47% think their insurance continues when they lend their car, which it does.