A majority of Canadians lack auto insurance literacy
A recent survey has found that the majority of Canadians lack insurance literacy when it comes to auto insurance – and that limited understanding could bite them in the form of overpaying for insurance, or being underinsured.
The survey showed that 42% of Canadians incorrectly believe that comprehensive auto insurance covers everything. Just 34% said they knew this was false, while another 24% said they did not know.
As Canadian drivers, the more we understand about auto insurance, the more likely we will get the coverage we need at a fair price and avoid disappointment when filing a claim for damages.
The survey additionally revealed that a good portion of drivers are not aware of certain insurance savings opportunities, or have misconceptions about the way their insurance works.
Twenty-five per cent (25%) of the survey’s respondents did not know they could suspend their auto insurance if they are not driving during the COVID-19 pandemic. Only 39% knew they could, while 22% said they did not know.
Sixty-eight per cent (68%) incorrectly assumed that insurers base premiums on the number of demerit points a driver has. Just 10% know that is not the case, while 22% did not know.
Thirty-eight per cent (38%) think the color of their vehicle influences the cost of insurance, when it does not.
Seventy-nine per cent (79%) believe an expensive or high-end car costs more to insure than an economically priced vehicle. Eight per cent (8%) indicated that price is not always a factor, while 13% said they do not know.
If you ever have question about your insurance policies, or are looking for advice to limit your risk exposure, the brokers and CSRs at DPM Insurance group are always happy to help. Click here for information on how to contact one of our six offices: https://dpmins.com/locations/
Source: Lyle Adriano, for Insurance Bureau Canada