November was Financial Literacy Month and Insurance Bureau of Canada (IBC) was contributing by teaching Canadians how “To Save and Protect”. Basically, you can save money by obtaining understanding of your auto, home and business insurance and with the right insurance policies you can protect your most valuable assets. Information is key to true financial literacy, and if that information can help you protect your future and save money… well, why wouldn’t you invest some time into educating yourself regarding insurance.
We all understand the value and need for insurance in managing everyday risks such as collisions, vandalism, and fire. It gives you peace of mind that you and your family’s most valuable possessions are protected. It helps us ensure our financial future and is part of the larger picture.
However, do you know how to get the protection you need at a reasonable cost?
Most of us Canadians really lack the information needed to get the best value, protection and investment out of our insurance policies. Did you know that 50% of Canadians want to know more about home and car insurance and how it fits into their financial plans and that 88% of Canadians think schools should include home and car insurance in any financial lessons? Makes sense, right? After all, the more educated we are the more empowered we are to making better decisions regarding our insurance policies.
One way to help secure a lower insurance rate is to educate yourself about what insurers will want to know when determining your premium. Auto insurance for example, they will want to know your level of driver’s license which indicates your driving experience. Where you live is important as well. In urban areas, collisions and auto theft are more likely than in rural areas. It goes further than that as well, if your neighbourhood is prone to crime this will also affect your rates adversely. While the colour of your car is not a factor, your car’s make, model, year, value and potential repair costs are all taken into account. There are many other factors that contribute to how insurers determine your premium so it is important to educate yourself on them all.
So below are some things you can do today to improve your financial know-how.
Learn more about insurance. The types of insurance, liabilities, plans/coverage to ensure you have the insurance that is right for you. Something as simple as shopping around, can help save you money.
Make a plan to add insurance to your household budget. The risks of not securing your home, auto or business is too high for you not to secure your family’s financial future.
Review. Set a date to call your insurance provider and review your current insurance policy. Understand your liabilities and ensure that you are covered of an accident.
Think you know your stuff? Take the Insurance Literacy Quiz and see for yourself how well you know insurance
Disclosure:The opinions and language are all my own, and in no way do they reflect The Insurance Bureau of Canada.
Elizabeth Lampman is a coffee-fuelled Mom of 2 girls and lives in Hamilton, Ontario. She enjoys travelling, developing easy recipes, crafting, taking on diy projects, travelling and saving money!