Determining whether you need insurance and finding the right provider can be challenging sometimes. Whether it concerns the industry or a specific segment, there are several misconceptions and myths people hold about insurance that make the decision process unnecessarily difficult. Getting the facts and having some insight on how things operate can make shopping for insurance much easier, and help you understand how things function.
The Insurance Bureau of Canada (IBC) is the national association representing insurers in Canada, and its members comprise 90% of the property and casualty insurance market in Canada. It has provided an easy to understand portal to help consumers decide how to buy insurance, what to check for in their policies and some statistics concerning the insurance industry. They, along with some others have created a list of some common misconceptions regarding insurance;
Myth: Auto insurance companies constantly change what is covered and what is not.
Fact: In Canada, provinces and territories set minimum coverage levels for auto insurance policies in their respective regions. Coverage cannot be approved without the government signing off.
Myth: Medical expenses from an auto collision are covered by provincial or federal healthcare plans.
Fact: While provincial and federal healthcare may help cover immediate healthcare costs, auto insurers pay more for medical rehabilitative costs than public healthcare, workers compensation plans and private healthcare plans combined.
Myth: Red cars are more expensive to insure.
Fact: Insurance companies look at many factors when determining the premium for specific makes and models, including average repair costs, theft statistics and claims histories. Colour is not a factor that is considered in producing an insurance rate.
Myth: Men pay more than women for car insurance.
Fact: While men do generally pay slightly more than women for auto insurance, it is impossible to say that this will always be true. Rates are largely determined on a profile-basis, meaning that factors such as the driving record and claims history will be considered in generating rates.
Myth: Because of no-fault insurance, no one person is found to be at fault in an accident when they occur.
Fact: Drivers that cause auto collisions do get recognized as being “at fault” when they are so. No-fault insurance simply means that insurance providers will cover expenses for their own respective parties, regardless of who is at fault. Drivers at fault can expect their rates to increase.
Insurance shopping overall can be extremely daunting, especially when there are so many misconceptions and myths concerning the topic. Will Marshall is here to help you understand how policies work, walk through your situation and provide you with the best alternatives to protect you and your family. Whether on the road, at home or at work, we have products to serve you.
Our team of insurance experts in Barrie and Orillia will make the process easy, and we are here for you! Contact us today to get started.