Insurance myths: separating fact from fiction

Insurance can be complicated. Between coverages, exclusions, conditions, and policy wording, it’s easy to feel overwhelmed. Like most people, you’re busy—and reviewing the fine print of an insurance policy probably isn’t at the top of your list of favorite activities.

The good news? That’s what we’re here for. We deal with these details every day and are happy to clear up some of the most common misconceptions about insurance. One less thing for you to worry about!

1. You are not legally required to carry home insurance, unlike auto insurance.

TRUE ✔

There is no law requiring homeowners to carry home insurance. However, before approving a mortgage, most lenders will require that the property be insured.

2. If you are a tenant, you don’t need tenant insurance because your landlord’s policy already protects your belongings.

FALSE ✘

As a tenant, you need your own insurance policy if you want your personal belongings protected in the event of a loss. Tenant insurance also includes liability coverage, which can be invaluable if you accidentally cause damage to someone else’s property or if a guest is injured while visiting your home.

3. If property is stolen from your vehicle, it is covered under your home insurance policy.

TRUE ✔

In most cases, personal belongings stolen from your vehicle are covered under your home insurance policy, subject to the terms, conditions, and limits outlined in your contract.

4. All water damage to your home is automatically covered by your home insurance.

FALSE ✘

A standard homeowners policy typically covers common water damage losses, such as an overflowing washing machine or an accidentally left-running faucet. However, events such as sewer backup often require additional coverage that must be added to your policy.

5. You should always notify your broker when carrying out renovations.

TRUE ✔

Kitchen renovations, adding a garage, or finishing a basement can increase the rebuilding value of your home. That’s why it’s important to advise your broker so your coverage remains adequate.

6. Québec drivers pay less for auto insurance than drivers elsewhere in Canada.

TRUE ✔

Generally speaking, auto insurance premiums in Québec tend to be lower than in many other provinces. One reason is that bodily injury compensation is provided through Québec’s public automobile insurance plan (SAAQ), while private insurers primarily cover vehicle damage and liability.

7. Red vehicles cost more to insure.

FALSE ✘

Whether your vehicle is red, blue, green, yellow, or covered in flower decals, its color has no impact on your insurance premium. Premiums are based on factors such as the vehicle make and model, your driving experience, where and how the vehicle is used, your chosen coverages, and your claims history.

8. Men pay more for auto insurance than women.

TRUE… and FALSE

It depends on the age group. Younger male drivers often pay higher premiums because they tend to represent a higher insurance risk. However, the difference generally decreases with age, and by middle age, premiums for men and women are often quite similar.

Ultimately, the frequency and severity of claims are among the most important factors affecting insurance premiums, regardless of age or gender.

9. There are very few ways to lower your home insurance premium.

FALSE ✘

There are several ways to reduce your home insurance costs, including:

• Choosing a higher deductible
• Bundling your home and auto insurance policies
• Installing burglar alarms or monitored security systems
• Installing smoke detection or fire protection devices
• Maintaining a claims-free record

Your broker can help identify additional savings opportunities based on your situation.

10. An accident caused by sneezing while driving or swerving to avoid a deer isn’t covered.

FALSE ✘

If you carry collision coverage (in addition to mandatory liability coverage), damage to your vehicle may be covered, whether the accident was caused by a sudden sneeze or an attempt to avoid an animal on the road.

11. Telematics programs track everything I do and invade my privacy.

FALSE ✘

Telematics programs collect specific driving data to evaluate driving habits and reward safer drivers with potential discounts. Depending on the program, factors such as hard braking, rapid acceleration, mileage, and distracted driving events may be considered.

The information collected is protected and used according to the program’s privacy terms. In many cases, drivers can qualify for significant premium discounts based on their driving behavior.

12. One last easy question: if you have other questions about home insurance, we’re always here to help.

ALWAYS TRUE ✔

Insurance doesn’t have to be confusing. If you have questions about your home, auto, or business insurance coverage, our team is always happy to help you find the answers you need.