One in three Canadians haven’t read their home or auto insurance policy, according to new research from Sonnet Insurance, Canada’s only national online home and auto insurance company. Those who do attempt to read it are traditionally greeted with lengthy descriptions and jargon, making it difficult to understand coverage and common terms.
“Sonnet wants to change the way Canadians feel about insurance and the first step is to simplify and demystify the traditionally complicated industry language,” said Roger Dunbar, SVP, Sonnet. “If we can empower Canadians to understand their insurance options, they can be confident they have the right coverage for their needs.”
The survey shows that while Canadians have a good understanding of basic insurance terms, awareness and comprehension drops for coverage options. For instance, 90 per cent of respondents understand fundamentals like ‘deductible,’ and 80 per cent have enough money saved to cover this in the event of a claim. Conversely, many struggled with these key terms:
Similarly, there are some key terms misunderstood for auto insurance:
Sonnet partnered with accredited financial counsellor, podcast host, and blogger Jessica Moorhouse to help educate Canadians on the importance of their insurance policy.
“Digging into and understanding your finances is often intimidating, but insurance policies play a vital role in protecting your overall financial wellbeing,” said Moorhouse. “Reading your policies and really understanding your coverage is one of the greatest gifts you can give to your future self.”
Canadians looking to learn more about common insurance terms after reading their policy can visit sonnet.ca/blog/glossary for more information.
DIG Insights conducted this research for Sonnet Insurance through an online survey of 1,260 Canadian adults, excluding those living in Saskatchewan, Manitoba, Newfoundland and Labrador, Northwest Territories, Nunavut, and Yukon, between October 15 and October 30, 2018.
About Sonnet Insurance
Launched in 2016, Sonnet Insurance Company (Sonnet) is a federally regulated insurance company. Our mission is to provide Canadians with an easy, transparent, and customized way to buy home and auto insurance online.
SOURCE Sonnet Insurance Company