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Popular, but untrue urban legends about insurance alive and well: TD Insurance survey

Global Administrator

Twenty-nine per cent of Canadians incorrectly believe driving red cars will result in more expensive insurance premiums, while 54% believe two-door cars are more expensive to insure, according to a recent TD Insurance survey.

Part II of the TD Insurance 2011 State of Insurance Report delves into these and other popular myths about insurance products.

A more complete summary of the findings can be found at:

Overall, the online survey of 1,000 people conducted in March 2011 by Environics Research Group found that "when it comes to making significant decisions regarding insurance products and services, 63% of Canadians don't go to an insurance provider, but instead ask their friends, family or colleagues for advice (25%), rely on searching the Internet (33%), or simply go with their gut."

This hearsay approach to insurance knowledge likely plays a part in the spread of misinformation about insurance products and services. The TD Insurance survey identifies a number of these myths and legends.

For example, 48% of the survey respondents believe their auto insurance premiums won't increase if they get into an accident but don't file a claim.

Also, 63% of Canadians wrongly believe they will be reimbursed at today's prices if they file a home insurance claim for stolen or damaged items. "A standard home policy only covers you for the value of your contents, less depreciation," says Henry Blumenthal, vice president and chief underwriter for TD Insurance. "For example, if you purchased a television five years ago for $500, you might only get $100 for it if it were destroyed in a fire, even if it costs $600 to replace that same TV today. If you want a higher form of protection, you should choose to add the replacement value option to your contents coverage, which will ensure the contents of your home are insured for the amount it costs to replace them today."

Based on the results of its survey, TD Insurance expressed concern Canadians were putting themselves, their families and assets at risk by making misinformed decisions about their insurance based on hearsay and insurance urban legends.

Thanks to TD Insurance and CIP Society Advantage Daily -


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