Financial literacy includes insurance literacy

Financial Literacy Month aims to empower Canadians with the knowledge

Insurance Bureau of Canada

Half of Canadians want to better understand home and car insurance and how it fits into their financial plans and almost 90 per cent think children should learn about home and car insurance at school, according to a Pollara survey commissioned by Insurance Bureau of Canada (IBC).

Financial Literacy Month aims to empower Canadians with the knowledge, skills and confidence to make responsible financial decisions in their lives. As highlighted in the Oct.  29, release of a major earthquake impact study, the majority of British Columbians do not include earthquake insurance as part of their financial preparedness. Part of this is due to a misunderstanding about their insurance policy.

“Understanding how insurance works and how it helps families manage risk is a very important part of financial literacy,” says Bill Adams, IBC Vice-President, Western & Pacific. “After disaster strikes is the worst time for people to learn what coverage their insurance provides. Financial Literacy Month in November is the perfect time for Canadians to increase their knowledge about insurance.”

Take the time during Financial Literacy Month to find out about your policies. Ask your insurance representative these questions:

Home Insurance

1. What does my policy cover?

2. Is there a specific kind of insurance for the type of home I live in (e.g., house, condo or apartment)?

3. Are there risks I can’t buy insurance for?

4. What optional coverage is available?

5. Should I make a claim for every loss?

Car Insurance

1. If I get into a collision tomorrow, what kind of coverage can I expect under my policy?

2. What optional coverage is available?

3. Should I purchase collision insurance on an older car?

4. What kind of deductible is recommended?

5. Does the distance I travel affect my premium?

Business Insurance

1. What kind of insurance do I need?

2. Are there risks I can’t buy insurance for?

3. If my business is home-based, do I need special coverages?

4. What does errors and omissions or malpractice insurance cover?

5. What can I do to keep my premium down?

Consumers who have general insurance questions can contact IBC’s Consumer Information Centre at 1-877-772-3777 extension 222.

Visit ibc.ca to learn more. IBC shares insurance information with consumers online, through community tours, brochures, newspaper articles and television advertising.  As a member of an advisory council to Financial Consumer Agency of Canada, IBC advocates for improving Canadians’ insurance literacy as part of their financial literacy.

The Insurance Bureau of Canada is the national industry association representing Canada’s private home, car and business insurers. Its member companies represent 90 per cent of the property and casualty (P&C) insurance market in Canada.