10 things your auto and home insurance provider won’t tell you

1. Auto and home insurance brokers don’t have access to all insurers. 

Contrary to popular belief, property & casualty insurance brokers don’t have access to every insurance company out there. They can ask for home and car insurance quotes through a limited number of brokerage firms—and that number has dwindled significantly over the past 20 years. So if you want a quote from a direct underwriter such as Desjardins, La Capitale, SSQ, or CAA-Quebec, you’ll need to ask for it yourself.

Download our checklist for shopping for insurance (in French only): : aide-mémoire pour magasiner vos assurances

2. Don’t file a claim for a loss under $1,000. 

Remember that the purpose of insurance is to protect your financial position in the event of a (major) problem. As property and casualty insurance experts will tell you, no one should ever make a claim for an amount less than $1,000. You should be able to cover that amount by dipping into your emergency fund, relying on your insurance coverage for serious losses only. Factor in the cost of the deductible (between $200 and $500, depending on the amount chosen) and the increase in the premium cost for the years to come, and it’s easy to do the math: filing a claim simply isn’t worth it.

3. Take care of your credit score. 

What’s your best asset for paying a lower insurance premium? Your credit rating! If it’s healthy, so much the better. You have access not only to better auto and home insurance premiums, but also to better rates for your mortgage, car loans and personal loans. If on the other hand your credit score isn’t so great, you can improve it by making sure to pay all your bills on time (including your mobile phone, electricity and credit card).

4. You should always shop around for auto and home insurance.

Insurers periodically modify their rates based on claims they’ve paid out. Before you renew, look into multiple insurers’ premium amounts. Your current insurer can’t always offer you the best price on the market!

Keep in mind, though, that some insurers don’t appreciate “chronic shoppers,” i.e., people who switch providers every year, because issuing a new insurance policy is an expensive process. These insurers may therefore grant you a “loyalty discount” based on how long you’ve remained insured with your current provider. Find out!

5. If you’re turned down for insurance, there are still ways to get coverage.

Perhaps you have a criminal record, have filed multiple claims in recent years, or have had an auto insurance policy terminated for non-payment. If so, remember that you’re not the only one having trouble finding an insurer. To make life easier, contact a broker who can make the rounds of so-called non-standard insurance providers. Of course, you can expect to pay a higher premium, and your coverage options may be less extensive.

6. Your geographical location has a bearing on your insurance premium.

An insurer who distributes products in Quebec may decide to avoid certain regions of the province—and they are perfectly within their rights to do so. For instance, if you live in a town in Northern Quebec, you may be more limited in your choice of insurers than if you live in Sherbrooke. Your premium will also be higher, because of a number of factors working against you:

• The village relies on volunteer firefighters, who may well be skilled at saving lives, but who often leave burned homes in a state beyond repair;
• Materials required for renovation or rebuilding are more expensive because of the long distances over which they need to be shipped; etc.

7. Never make a false declaration or neglect to mention something when asking for a quote.

Under the Civil Code of Quebec you are obligated, as the insured party, to declare everything that you know and that may have a significant influence on an insurer’s decision. Consequently, when purchasing an insurance policy, you must avoid making false declarations or neglecting to mention certain elements that could cause your premium to increase. Otherwise, you risk having your policy terminated, or receiving a lower compensation amount after a claim. It’s worth noting that most insurers record their conversations with customers, and may use a recording as evidence in court to prove that a customer lied to them.

8. It’s advantageous to bundle your policies with one insurer.

If you have a primary residence in Quebec and a cottage in Ontario, consider choosing an insurer who operates in both provinces. That way, you’ll need to make only one phone call to purchase your policies, and you may even be eligible for discounts—if you add auto insurance from the same provider, for example. Good to know: some insurers operating in Quebec do not necessarily do business in other provinces.

9. Insurance premiums are based, among other things, on personal factors.

Do you feel that an insurer is discriminating against you, because your home insurance premium is higher than your neighbour’s, even though they live in a house similar to yours? Well, you’re right! Insurance discriminates: in other words it is based, among other things, on personal factors, specific to every individual. So don’t take it personally; that’s just the way it is! Generally speaking:

• Young drivers pay more than experienced drivers.
• Insureds with many claims pay more than those who have reported no losses.
• People who drive fewer kilometres per year pay less than those who are on the road a lot.

10. Foster families and property and casualty insurance 

If you are a foster family hosting many children with specific needs and you have been refused insurance several times, you should look into commercial insurance. In your situation, your auto and home insurance requirements are more akin to those of a company than a regular family.