Just like paying the taxman, insurance is one of those not-so-fun-but-necessary expenses. Whether it’s life, home, auto or mortgage insurance, most Canadians are paying for at least one type of coverage. However, learning about insurance is about as much fun as cleaning your attic, and it appears policyholders aren’t even trying; a majority of Canadians (52 per cent) can’t be bothered to ask their insurance provider about coverage they don’t understand under their insurance policy, according to a TD study.
Why Aren’t We Asking Questions?
Why are we so shy when it comes to our insurance policies? Thirty one per cent of TD respondents say they wouldn’t clarify their policy because they think it is too complicated. Another 31 per cent said it’s due to a lack of time. Twenty three per cent said they were embarrassed about their lack of knowledge, and 19 per cent simply weren’t interested enough to learn more, according to the State of Insurance Report. This is a startling revelation, as insurance is crucial in case of life-changing events such as car accidents or home fires.
“If you come across terms or conditions you are unfamiliar with in your policy, there is no need to feel embarrassed or daunted to seek help,” says Dave Minor, a vice president at TD Insurance. “Speak with your insurance provider whose job it is to clarify any questions you have about your policy to ensure you thoroughly understand your coverage, rights and responsibilities as a policyholder.”
It Really Is Important To Review Your Insurance Policy
While you don’t have to know your insurance policy like the back of your hand, it’s a good idea to at least have a basic understanding of your coverage. While over half of Canadians (55 per cent) review their insurance coverage annually, 37 per cent of Canadians have an “out of sight, out of mind” philosophy and can’t even be bothered to glance at their policy.
While insurance can be a pain to pay, you’ll be glad it’s there when you need it – and it’s important to know when it won’t be. Twenty three per cent of respondents were upset when they discovered they were covered for less than initially thought, while 15 per cent were actually pleased to find out they had more coverage. Instead of keeping your fingers crossed and hoping you’re covered when disaster strikes, wouldn’t it be nice to know ahead of time?
Check In Frequently
Life is full of game changing events – and it’s important that your insurance coverage evolves with you.
“When you renew your insurance, or reach a milestone in life like buying a new car, a home or have recently completed renovations, spend some time reviewing your coverage,” says Minor. “Your insurance needs may change from one year to the next and your coverage could have changed, too. Call your insurance provider if you have any questions about adjustments or if your coverage no longer reflects your lifestyle.”