Canadians know little about insurance products

According to a new survey conducted for the Desjardins Group, Canadian consumers know little about insurance products.

The SOM survey, which polled nearly 3,000 Canadians, also found that consumer habits, with respect to managing personal finances, have scarcely changed since last year.

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To find out what respondents know about insurance coverage, eight questions were added to this year’s Desjardins Personal Finance Index survey on managing personal finances. Their answers indicate a widespread lack of knowledge of insurance products and certain shortcomings in their financial habits.

The main findings of the SOM survey are as follows

• Only 44% of respondents knew that not all insurance policies come with surrender value.
• Only 45% knew that water damage is the most common type of claim filed by homeowners.
• Close to 40% of people protected by home insurance did not keep any of the lists, sales slips or photos of their most valuable assets that would help them submit an accurate claim in the event of a loss.
• 30% did not know whether their credit card comes with travel insurance, whereas 32% knew that it does but knew little about the coverage itself.
• A third of respondents have either opted for or refused a mortgage insurance product offered by a lending institution, without first assessing their financial situation or comparing costs with other mortgage insurance products available on the market.

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The survey was conducted between June 6 and 19, 2012, among 3,000 adult Internet users across Canada (1,500 in Quebec, 750 in Ontario and 750 in the other provinces). The margin of error at a confidence level of 95% is 2.9% in Quebec and 3.1% in the rest of the country.

This story was originally published by Canadian Insurance Top Broker.