Money Minute: What insurance companies don’t want you to know

When it comes to insurance, the fine print can read like the tedious plot to a daytime soap opera.

That might be why so many Canadians have hangups when it comes to understanding the ins and outs of their insurance.

A recent survey by BMO Insurance found that while three-quarters of Canadians have some form of life insurance, a startling 88 per cent don’t know much about the different types of life insurance options available.

The details are also murky when it comes to home and auto insurance.

Nearly a third of Canadians say they’ve renovated their home without telling their insurance provider and 14 per cent have been in an accident without reporting it to their insurer according to an Allstate Canada survey.

Both of which could impact, and in some cases, negate the pay out.

That’s why it’s important to have a thorough understanding of your insurance policy before you sign off on it so when it comes time to collect a claim, you don’t find yourself in an insurance provider’s labyrinth.

In this week’s episode of Money Minute, Yahoo Finance Canada’s Ashleigh Patterson lets you in on a few secrets the insurance companies don’t want you to know.