Many cost-conscious consumers are putting their insurance coverage on the chopping block, according to a survey released Wednesday.
According to the latest TD Insurance State of Insurance Report, 42% of Canadians surveyed are less likely to purchase a new policy or buy enough insurance due to the economic environment.
The second annual report found some Canadians have decided not to make claims in order to keep their premiums low (33%) or to avoid a high deductible (29%). Even more alarming, 21% of Canadians have cancelled or forgone insurance altogether in an effort to save money. As a result, one-in-five Canadians now admit they don’t think they have enough insurance (19% versus 9% in 2011).
According to the report, the majority of Canadians (79%) say they consider insurance an integral part of their financial planning. Yet, 39% of Canadians don’t have any life insurance.
“Our report unveiled a serious disconnect between what Canadians think and what they do when it comes to insurance,” says Dave Minor, vice president, TD Insurance. “Canadians say they understand the importance of insurance, yet many admit they don’t have enough insurance to protect their assets and loved ones, now and into the future.”
“Understanding exactly what you are covered for is the key to protecting yourself and your loved ones,” says Minor. Yet, the report found 29% of Canadians are not sure what they are covered for (versus 25% in 2011) and 64% of Canadians don’t bother to read the fine print of their policies thoroughly (compared with 83% last year).