Toronto, Ontario — RATESDOTCA, a company that compares Canadian insurance rates, recently polled 1,513 Canadians to analyze their knowledge of auto insurance, finding that the majority of our nation’s drivers scored an ‘F-grade’ when it comes to insurance literacy.
The survey consisted of seven common questions drivers may ask themselves before selecting vehicle insurance, with results showing that nine percent of Canadians incorrectly answered every statement.
The outcome of the survey indicates that many Canadians are at risk of being overcharged for their premiums or even underinsured in worst-case scenarios, says RATESDOTCA.
Below are some of the results:
- Forty-two percent incorrectly believe that comprehensive vehicle insurance covers everything (34 percent knew this is false; 24 percent did not)
- Twenty-five percent did not think they can temporarily suspend their car insurance if they are not driving during the COVID-19 pandemic (39 percent of Canadians correctly knew they can; 36 percent say they did not know)
- Nearly seven in 10 drivers (68 percent) incorrectly believe that insurance companies base premiums on the number of demerit points a driver has (just 10 percent answered right; 22 percent did not know)
- Thirty-eight percent think the colour of a vehicle influences the cost of insurance (it does not)
- Most respondents (79 percent) think an expensive or high-end car costs more to insure than an economically priced vehicle (8 percent do not and 13 percent did not know). High-end cars are typically more expensive to insure than less expensive vehicles although, this isn’t always the case.
“As Canadian drivers, the more we understand about auto insurance, the more likely we will get the coverage we need at a fair price and avoid disappointment when filing a claim for damages,” says Liam Lahey, Insurance Editor, RATESDOTCA. “For example, although the name may be confusing, comprehensive insurance is an optional coverage you can add to your policy. It covers damages resulting from certain risks or perils such as theft, vandalism, and falling or flying objects but does not cover damages resulting from a collision.”
Based in Toronto, RATESDOTCA is a rate comparison website that offers a quick and simple digital experience to compare the widest selection of insurance and money products in the market.