Insurance policies top November's must-read list for Financial Literacy Month
TORONTO, Nov. 13, 2018 /CNW/ - One in three Canadians haven't read their home or auto insurance policy, according to new research from Sonnet Insurance, Canada's only national online home and auto insurance company. Those who do attempt to read it are traditionally greeted with lengthy descriptions and jargon, making it difficult to understand coverage and common terms.
"Sonnet wants to change the way Canadians feel about insurance and the first step is to simplify and demystify the traditionally complicated industry language," said Roger Dunbar, SVP, Sonnet. "If we can empower Canadians to understand their insurance options, they can be confident they have the right coverage for their needs."
The survey shows that while Canadians have a good understanding of basic insurance terms, awareness and comprehension drops for coverage options. For instance, 90 per cent of respondents understand fundamentals like 'deductible,' and 80 per cent have enough money saved to cover this in the event of a claim. Conversely, many struggled with these key terms:
Sewer backup: 21% are unfamiliar with this coverage that could leave them in a messy situation
Overland flood coverage: More than a quarter of respondents don't have a basic understanding of overland water coverage that protects against fresh water flooding from rivers, lakes, and melting snow or ice
Identity theft coverage: A common inclusion in home insurance policies, 40 per cent are uncertain if they're covered in case someone steals their identity
Similarly, there are some key terms misunderstood for auto insurance:
Comprehensive coverage: Over a quarter of those surveyed are unaware of the benefits from comprehensive coverage, which includes things like certain natural disasters, damage caused by lightning, or flying and falling objects
Collision coverage: Only 44% had a full understanding of collision coverage, despite being one of the most valuable benefits of an auto policy
Canadians in Ontario and parts of Atlantic Canada should also make sure they're familiar with no-fault insurance, as only 33% had a full understanding of the term
Sonnet partnered with accredited financial counsellor, podcast host, and blogger Jessica Moorhouse to help educate Canadians on the importance of their insurance policy.
"Digging into and understanding your finances is often intimidating, but insurance policies play a vital role in protecting your overall financial wellbeing," said Moorhouse. "Reading your policies and really understanding your coverage is one of the greatest gifts you can give to your future self."
Canadians looking to learn more about common insurance terms after reading their policy can visit sonnet.ca/blog/glossary for more information.
DIG Insights conducted this research for Sonnet Insurance through an online survey of 1,260 Canadian adults, excluding those living in Saskatchewan, Manitoba, Newfoundland and Labrador, Northwest Territories, Nunavut, and Yukon, between October 15 and October 30, 2018.
About Sonnet Insurance
Launched in 2016, Sonnet Insurance Company (Sonnet) is a federally regulated insurance company. Our mission is to provide Canadians with an easy, transparent, and customized way to buy home and auto insurance online. Experience the future of insurance at Sonnet.ca, and say hello on Twitter, Instagram, Facebook, and LinkedIn.
SOURCE Sonnet Insurance Company
For further information: To learn more about this topic or to speak with Jessica Moorhouse about the importance of insurance to your financial wellbeing, please contact: Greg Fast, Digital Communication Specialist, Sonnet Insurance, (T) 877-859-4950 ext. 54118, (C) 647-221-9474, [email protected]