When Joe and I started dating I was 24 and he was almost 25 and I was really surprised to hear that he had life insurance as well as car insurance. Now we both have life insurance, we share the car insurance and we have our brand new homeowners policy.
Insurance is something that I know is necessary, I understand it’s purpose. It’s like the children’s hospital – something you’re lucky to have but don’t want to use.
The fact is that I don’t know a lot about the ins and outs, I signed on with my husband’s broker, we’ve only talked about shopping around since. When I got an invitation to join a blog campaign by the Insurance Board of Canada, I was interested to find out what there is to know.
They gave me a series of questions to answer, and then a link to find out the actual answers so I could compare. It’s quite an exercise.
Q1: Are Ontarians paying more for auto-insurance, but getting less coverage?
I haven’t heard of this being an issue living in Ontario, though I know that rates of auto insurance vary a lot based on a number of factors.
Actual Answer: Insurance rates did rise in Ontario between 2004 and 2010 but reforms have been made to stop this from continuing.
Q2 Is the money I pay for insurance set aside just for me, to cover any claims I may have in the future?
I assume insurance companies work like banks, they take your money and use it for their own purposes until you ask for it back.
Actual Answer: Your payments go into a pool that they use to pay off the claims that are made every year.
Q3: Is flood damage caused by a spring thaw covered by your home insurance?
This is one I should know the answer to being a new homeowner, but I’m assuming it depends on your policy. I would also think there would be a difference between a spring thaw and a major flood.
Actual Answer: Flood damage from a spring thaw is not covered because too few people are at risk to spread the claims through that pool where the money is kept. They recommend that homeowners take precautions and learn how to protect their homes before severe weather hits.
(And with the increase of severe weather we’ve been seeing over the past few years, I think that makes pretty good sense).
As I get older, I know that there are things I need to pay more attention to – my pension, my savings and my insurance. I need to protect myself, my family and my home.
Find out what your insurance company can do for you by visiting http://getintheknow.ibc.ca/Insurance-Explained.aspx
Although this post has generously been sponsored by the Insurance Bureau of Canada, the opinions and language are all my own, and in no way do they reflect the Insurance Bureau of Canada.