As the child of parents who grew up in war-torn Britain, my parents did their best to ensure we were provided for and that we’d never have to worry about finances. This actually backfired in my case. I was never really taught the value of a dollar and up until I met my husband I had absolutely no savings. From the age of 13 I had a job, often two at once and yet I managed to hit my late 20’s deeply in debt, lacking a true understanding of planning for my financial future.
Financial Literacy Month
November was the perfect time to dust off your financial thinking cap and learn more about saving money. Insurance Bureau of Canada (IBC) is helping Canadians “To Save and Protect” — to SAVE money by better understanding their auto, home and business insurance, and PROTECT their most valuable assets with the right insurance policies.
Every day we hear or read about someone who has experienced loss due to an accident or unforeseen event. Fires, car accidents, and thefts…they all leave us with financial concerns. By having the RIGHT insurance for our individual circumstances we can save money on premiums and ensure we are protected in the event of a disaster.
Teach Your Children
When I celebrated the day I got my license, I had no idea that car insurance was there to benefit me. I simply saw it as an added cost I had to face in order to drive. By teaching our children the importance and benefits of insurance, we will be adding to their financial insight and helping them to properly prepare for future events.
Most Canadians lack the knowledge needed to get the most value, best protection and smartest investments out of their insurance policies.
50% of Canadians want to know more about home and car insurance and how it fits into their financial plans.
88% of Canadians think schools should include home and car insurance in any financial lessons.
AUTO: Here is a list of a few things first time drivers should keep in mind
Shop around online – Compare prices, coverage options and service. You may even receive a discount just for being a student and requesting an online quote
Choose a higher deductible – (the amount you pay in the event of an insurance claim) to lower your premium – but make sure it’s one you can afford to pay if you’re involved in a collision.
Go to driving school – Some insurers may offer a discount if you’ve completed a certified driver’s education course approved by your Ministry of Transportation
When it comes to insurance, the car you drive does matter – Some models like four door sedans are less popular with thieves. A car with a lower cost insurance rating will help keep your premium affordable.
Piggyback onto your parents’ insurance policy – As an occasional driver if you don’t plan on driving that often. A young, occasional driver will pay a lower premium than a young, principal driver. Even if you’re buying your own car, get a quote from your parents’ insurer first – discounts are given for having more than one car on the same policy.
On the honour roll? – Don’t keep it to yourself – tell insurers about it! You may be eligible for a reduced premium if you maintain a certain average and provide transcripts as evidence.
By knowing how the insurance industry looks at you, you can choose the right coverage for your situation and in the end save money. Check out this handy pdf.
Here are some simple things you can do today to inform yourself and make sure you have the best protection for your needs.
Take the Insurance Literacy Quiz and see what you may not know about insurance.
Learn more about insurance and include it in your budgeting plans. Insurance is mandatory if you drive a car, or need a mortgage to buy a home. Insurance brings you peace of mind and coverage from events/disasters that could otherwise destroy your financial future. Not having insurance is a huge risk that you don’t want to take.
Plan & Review. Set a date to call your insurance provider and review your current insurance plan(s) to make certain your coverage mitigates your risks in case of accidents. If you currently don’t have insurance because you don’t own a home or just started driving, IBC can help with that too. Their website has information for first time drivers and homeowners.
By taking the lead and having all the facts to our unique situations, we can empower ourselves and our children to make the right choices, thus saving money and preparing for the future.
Insurance Bureau of Canada has more information on their website for every type of insurance, head on over there and brush up on everything you’ll need to know. (Insert Link)
Disclosure: Although this post has been generously sponsored by IBC, the opinions and language are all my own, and in no way do they reflect Insurance Bureau of Canada.