Fact Vs. Fiction: Don’t Let These Insurance Myths Cloud Your Judgement

13 September 2017

insurance facts

Many people brush insurance off as being nothing but a formality, but the reality is much more complicated than that. Insurance coverage can be the difference between getting back on your feet and going bankrupt. It’s important to know the facts when considering insurance. The Insurance Bureau of Canada has put together a fact sheet regarding automotive insurance, and the industry in general. Here are a few myths, and the accompanying facts outlined by the Bureau:

MYTH: My medical expenses are covered under my provincial healthcare insurance in the event of an accident or injury.

FACT: Insurance companies pay more for medical rehabilitation costs in Canada than government health insurance plans, workers’ compensation plans and private health-care plans combined. Insurance companies pay at least $2 billion for the medical rehabilitation of injured Canadians. They pay through the accident benefits portion of auto insurance policies, the tort system and health care levies.

MYTH: The rules regarding coverage are constantly changing for my policy.

FACT: Auto insurance is highly regulated by provincial and territorial governments who set minimum coverage levels. Without government approval, Insurance companies cannot change basic coverage, terms or premiums.

MYTH: Insurance companies make a fortune on premiums.

FACT: Of every dollar that insurance companies collect in premiums, 55¢ goes back to policy-holders to pay for claims, 21¢ goes to pay operating expenses and 16¢ goes back into communities in the form of taxes. Insurers only keep 8¢ as profit. These numbers are averaged over the seven years from 2007 to 2013.

MYTH: You always get less than you ask for, so inflate your claim.

FACT: Inflating an insurance claim is illegal. There are many factors that insurers consider when determining the value of your claim. Adjusters may review your receipts and other details to ensure you receive appropriate value and service. Insurance crimes such as this only increase rates for everyone.

To see more, visit the Bureau’s website here.

Our team of Brokers is always here to help you understand your policy, and to help you make sure it provides you with the coverage and benefits you need. Talking to a professional insurance broker is the best way to make sure you are getting the protection you need at the best price available. We even maintain a 24 hour emergency claim number and claim centre for all of our providers, so you can always get immediate assistance. If you want a broker who can take care of your concerns no matter when they might occur, contact Will Marshall today.