Myths about insurance

You’re sure there’s no way to lower your home insurance premium — but your brother-in-law swears otherwise. You always figured your policy covered every kind of water damage, but now your mother’s got you second-guessing. Who’s right? No need to argue — we’ll settle it.

True or false?

Insurance is complicated. Between the inclusions, exclusions, conditions and rules, it’s hard to know where to start. You’re busy, like everyone, and let’s be honest — getting your head around the fine print isn’t exactly a good time. No problem: that’s what we’re here for, and we’re happy to clear it up. One less thing on your plate.

1. Unlike car insurance, home insurance isn’t required by law.

TRUE ✔
There’s no law making home insurance mandatory. That said, most banks won’t grant a mortgage unless the property you’re buying is insured.

2. As a renter, you don’t need home insurance to protect your belongings — your landlord’s policy has you covered.

FALSE
If you’re renting, you need your own home (tenant’s) insurance to protect what’s in your apartment and to give you civil liability coverage. That liability piece matters: it kicks in if you accidentally injure someone, or if a visiting friend slips on your stairs and gets hurt.

3. If something’s stolen out of your car, your home insurance covers it.

TRUE ✔
Yes — losses from items stolen out of your vehicle fall under your home insurance, within the limits your policy sets.

4. Any water damage at home is automatically covered by your home insurance.

FALSE
A basic home policy usually covers the most common water damage — a leaking washing machine, a tap left running, that kind of thing. For bigger trouble, like a sewer backup, you can add coverage to round out your protection.

5. It’s always worth telling your broker before you renovate.

TRUE ✔
Redoing the kitchen, adding a garage, finishing the basement — these can all raise what it would cost to rebuild your home. Let your broker know so your coverage keeps pace.

6. Quebecers pay less for car insurance than anyone else in the country.

TRUE ✔
It’s true! Quebecers pay $685 a year on average, versus $819 in New Brunswick and around $1,445 in Ontario. Nice to come out ahead for once! ¹ Just remember that in Quebec, private insurers don’t cover bodily injury — that’s handled by the Société de l’assurance automobile du Québec (SAAQ).

7. Red cars cost more to insure.

FALSE
Red, green, blue or yellow with daisies on it — your car’s colour has zero effect on your premium. What does matter: its make and model, your driving experience, where and how you drive it, the coverage you choose, and your claims history.

8. Men pay more for car insurance than women.

TRUE and FALSE
A bit of both, actually — it comes down to age. Among 16-to-20-year-olds, there’s a real gap between what a man pays on average ($664) and what a woman pays ($496). But it narrows with every age bracket, and by 45 to 64 the premiums are almost identical. ² The real takeaway: the more often claims happen, the more it costs to insure your vehicle for collision — regardless of age or gender.

9. There aren’t many ways to lower your home insurance premium.

FALSE
Plenty, actually: raise your deductible, bundle your home and car policies, add a burglar or fire alarm. And there’s more where that came from — give us a call!

10. An accident from sneezing at the wheel or swerving to miss a deer isn’t covered.

FALSE
Flu or fighting fit, dodging a groundhog or a deer — if you carry collision coverage on top of civil liability, damage to your vehicle is covered.

11. Telematics programs like my Driving® track my every move.

FALSE
In car insurance, telematics gathers data on how you drive so good drivers can earn savings. Intact Insurance’s my Driving® program uses it to set a premium discount of up to 25%, based on behaviours like hard acceleration, sudden braking and distraction at the wheel. Your data stays secure and isn’t shared without your consent.

12. Quick one to finish: if you’ve got more questions about home insurance, we’re always here to answer them.

Always TRUE ✔