Insurance loopholes: What you need to know about car, home and travel insurance (CBC Marketplace)
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- Опубликовано: 22 май 2024
- Originally broadcast December 6. 2013
You think you're covered... but what if you're not? Ordinary Canadians are in financial ruin after discovering they lacked the coverage they thought they were paying for. Marketplace gives you a a crash course in insurance as we check the fine print, reveal the loopholes and show you how - for travel, your home and your car - you may not be covered.
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"Oh no! My house burnt down! At least I have insurance"
"Actually, if you read this tiny line printed in off-white ink on white paper, it clearly states that your insurance only covers fires caused by fire-breathing dragons"
"So you're telling me that you don't cover fire demons?"
I've read some of that fine print - they get out of it by including the words "caused by an act of God"
@GeorgeConstanzaTheMovir2...are you a Game of Thrones fan? 😂😂😂
And ONLY fire breathing dragons on the 6th Sunday of the thirteenth month of the year. Insurance companies are nothing but scammers. They will certainly take your money and verbally promise you the world. But try to collect and they will slither out of the claim. Scum of the earth.
@@xeyex Billions know there actually is one, you just h- if you leave this world without finding him you are gonna first hand learn of fire I DO hope you find him before its too late
I get the impression that the Canadian gov't doesn't do very much to protect its citizens from deception by businesses.
Canada is not a real country so no it doesn't
Everything you claimed, except for "free medical care" haha
nope.
Name one country's government that does.
Andy Oldham And you think American government does our government cares more about giving illegals rights and positions in local government than its citizens
I'm not even from Canada and I find CBC news interesting.
Justin Ruiz It’s great and very useful.
Im watching this from Russia 😊
@@sawarebel learning how the baddies get away with it ? Lol
From philippines
so
The insurance companies have no problem collecting premiums. When there are claims, they say the policy is void. If so, they shouldn't have taken the money in the first place.
We have a system where they don't question. It's called medicare. IT'S GOING BANKRUPT, because of that. As long as they disclose the terms and conditions, it's your responsibility to do your homework and ask questions. You can't extract more money than they take in. The more money you want, the more they need to extract from other people. That's not sustainable.
Don't blame the insurance companies. Blame your horrible system of government up there in Canada, which has zero accountability and runs like a big totalitarian thug!! Here in the US these scam artists would NEVER be able to get away with such things. That is exactly why the EXACT same manufacturer offers a much better, stronger warranty on the EXACT SAME product sold in the US, compared to Canada!!
Lmaoo, are you serious about your claims?
Tbh in Canada and the US insurance seems so severely underwritten that it becomes dodgy.... Not a problem in NZ.
When insurance companies post profits only marginally lower than the top banks I have no sympathy for them.
In the US car insurance is mandatory.
You're paying thousands per year, Year after year, Someone hits your bumper and you have to fight with your insurance company for them to cover it, They only pay out half of the costs AND raise your rates, WTF AM I PAYING YOU FOR THEN!
Btw 6:24 most canadian interview i've ever seen, Going to a hockey game, No curse words, No rude comments, Even called the guy that hit him a gentlemen.
And if you get hit by someone without insurance and they take off your insurance gets pissed that you didn't get in your wrecked car, chase them down, and handcuff them until the cops show up. I hate insurance.
@@cassandra1418 That's what rear and front dashcams are for. 60 bucks will give you peace of mind.
@Rackn Stacker you're right about that, my province is no fault too. but a dashcam can save you from a ticket. people make up lies all the time and if you dont have a witness you can be screwed. also no fault still check who is to blame so definitely worth it. no fault just means you go thru your own company instead of arguing with another company to get ppaid out
1:45 Travel Insurance
6:10 Car Insurance
13:32 Home Insurance
Agreed. Insurance is THE BIGGEST legal scam ever made.
Screw 'em, sell everything you own, declare bankruptsy and start all over. Never buy anything you can't afford to lose, and screw the insurance companies. They're nothing but rip offs.
haha right? we only have so long to live. and presumably they've had to save up for decades to retire. starting over is out of the question.
me: i had a heart attack, insurance, will you cover it?
insurance: Sorry, but having a heart is a pre existing condition.
Better yet, "Being alive is a pre-existing health condition." They win every time.
Because they’ve got none
This is where I don’t understand about the freedom in North America. By law you have to pay for many insurance yet when accidents happen, the insurance is useless. It is like paying rent for the stuff that’s already been purchased by you.
For as long as Insurance companies are not regulated and penalizad for not clearly explaining coverages, they getaway like crimínales
Marketplace should do a video on the success rate, in these types of cases, after a lawsuit has been filed against the insurance company.
So often the response is 'not our problem'. Its easy for the insurance company to do. That's why you file a lawsuit.
I'd like to know how successful lawsuits in these cases are.
A friend of mine thought he had full coverage for theft. The policy stated he had coverage for robbery. His office was broken into overnight, he then tried to file a claim, they said he was NOT covered. You are NOT covered for burglary. Robbery is when someone comes and robs you in daylight, burglary is when someone comes in at night and robs you. He's still fighting the insurance company 16 months later. :(
I wonder what happened finally?...
Thank you CBC for being one of the best news organizations in the world
So if eventually insurance says coverage did not apply... Ive been paying for years a service that would never be given, right?
Why not return the friggin money ive been paying every month?
Jesi Dillon because they use that money to buy their vacation homes, yachts and company Porches. They wouldn’t want you to be able to have all these luxuries, now would they?
Amen to that.
How insurance is supposed to work is paying a sum each month in return for coverage. Companies have changed that and use the industry to their advantage.
I'm a plumber and I remember that storm in toronto I was working for almost 3 or 4 days straight no sleep it was insane.
Lol i got an insurance ad in the middle of the video. THEY KNOW. 😂
Google's watching you. lol
underwriting should always be done before people start paying the money. it is scamming people when the insurance companies take the money first then start underwriting only after people start to submit claim.
how do you exactly do that, through a lawyer?
@@LuisDonado you have no choice in the matter.
Its post claim under writing and us very common with credit insurance for life insurance, disability etc on credit cards, mortgages, auto loans etc.
They are a complete waste of money
The whole industry is a rip off. From the doctors to the grave.
We are being played. I said nothing about not buying it, so I don't get what you are making the comment to me.
As far as I’m concerned regarding the traveling thing anyway, its best to travel as much as you can before turning 50-55. Do it when you’re younger if possible. I cant talk about car or home ownership. I can sort of talk about the automobile thing to a point but only in that my car is 2005 and its really just a matter of time before it’s not worth worrying about. I don’t purchase brand new vehicles and this episode indirectly discusses part of why that is. My car is wonderful but largely disposable at this point.
Why not share the two questions on the form they answered incorrectly?????
asdf asdf it's in another video where they go in depth on their story
You think with all the insurance policies that go unclaimed because nothing happens would give the companies enough profit to prevent them from doing all the loophole/scamming bs
5 blockages ? That means he has serious heart problems. Also, how often do you have your health checked ?
ForgottenKnight1 my question is was he on any heart medication and did he say yes?
No way a stent has to cost CAD 70,000
He is male & they tend to NOT see a physician or have checkups as often as women?!?!
he had insurance
I love market place cbc episodes keep it up. great and good job guys.
Damn $300,000 bill? That alone on paper would trigger illness. I'm just saying, I'll be traveling to Atl to fight the deminish value of my car when I sell it. Lol
Insurance company: we payout insurance claims to those 95 and older... and then ONLY when accompanied by their parents.
DIV is something that is allowed in the US. You can file 1st and 3rd party in GA and 3rd party (if your not at fault) in the rest of the us. There are some caveats about UMPD that change state to state.
i had full coverage on my truck. i bought it from our impound yard from the towing company i worked for. one night someone shoved a rag in my gas tank and lit my truck on fire. it was the ex owner, who had it impounded by the cops prior to me buying the truck. he must have noticed it on the street and set it ablaze. at first my insurance came out to inspect the damage. the agent said it was covered and had me sign over the pink slip, they towed the truck away and promised me a check. they didnt send a check. a month later i called and they were trying to say it wouldnt be covered and they will not send me the check. i then told them they have 24 hours to return my truck and my pink slip to me. i added that regardless of any policy, the deal made when i signed over my pink slip was a purchase agreement. the agent promised me X amount of money and to sign over my title to him/his company. they then took possession of the truck. with that statement, after the agent on the phone spoke with management, they honored our agreement/transaction and issued the check. they had no other choice. the use of the term "purchase agreement" was how i reversed their denial. this insurance company was Geico. ffwd 20 years and i still have a geico policy on my gmc crew cab truck. its a 300k dollar policy , full coverage, and i pay only 253 bucks every six months. my dmv record is clear. i have not been pulled over by cops in over 20 years. zero tickets on my record and up to date. the claim i made regarding the vandalism/fire did not make my rate go up. kinda weird. although i had to fight their denial and was super pissed off at them, i still am insured by them. insurance companies sell policies to make a lot of money. of course they will try to debunk any and all claims. one tip i have for all of you is to always get a police officer to any and all accidents regarding you not being at fault. you must get an officer there at the scene to document OFFICIALLY what happened and that the other vehicle was present and involved. without a police report at the time of the incident, there is ZERO proof that it ever happened. the driver at fault cannot be pursued and held accountable. this is the case even if you exchange info with the other driver, without that police officer showing up and making documentation that this event happened, there is ZERO proof. the driver at fault could easily deny their involvement to an insurance claim against them.
Wow!! Thanks for that info! There will be lots of fine print reading and digging. Consumers are totally unaware!!
This is the reason I like the movie saw
Time to make a law against fine print!
If you’ve been in an auto accident, had a claim on your home or travel insurance, the first call you need to make is to your lawyer. Begin the process of suing immediately. We all used to think litigation was frowned upon however all industry has us set up to fail and you will pay. Get the solicitors on it, give em’ their cut of 25-50% and have them deal with all the scam insurance predators. Insurance was somewhat fair perhaps 30 years ago, not anymore.
@7:21 ..💿 row on the sun visor 👌🏼 ..old skool(ish) ;)
I watched lots of CBC News. I wonder, why consumer in Canada did not read the fine print and policy before signup anything?. For this particular video, The customer are guilty of not providing correct information on Travel insurance. No insurance will cover existing illness.
It is always good to read and understand your insurance policy wordings and its definitions so that you know what is really covered instead of assuming Coverage. Insurance agents should explain the type of coverage and it is up to the insured to write down any questions or doubts and ask insurance company or their agent to explain some insurance wording before accepting the contract. This can save a lot of misunderstandings and heart aches. Better to have underwriting done at the time of application rather than at the time of claim. Misrepresentations and lack of understanding are some of the reason for claims refused. Remember Insurance companies have lawyers draft their contract so buyer beware!!
The flood insurance one is a bit different from the rest. Most home fall into one of two categories: 1. you don't need it, 2. the risk is so high that it would be extremely expensive, so much so that some people might not be able to afford "home insurance" if it was default bundled. There are some but rather few homes that fall in between. This is why it should, in fact, be offered as a seperate insurance, as it is too variable to be just attached. The problem is that this isn't always made well known ahead of the fact.
The same applies with earthquake insurance where I'm at. It is not covered by regular policy and must be bought seperately, for quite a high cost because it is a high risk, high cost thing, relatively speaking. But the insurance company are required to disclose it *very* clearly. When I didn't have it, I was notified about it on every renewal.
P.S. In US, flood insurance is subsidized by the government in most places, so it doesn't reflect the real cost. In all practical terms, normal homes shouldn't be built on flood zones. But there are a lot of difficulty in modifying/eliminating existing homes.
Buy an old Toyota or an old Honda and you'll have peace of mind!
don't forget volvo
@@garminteractive7864 nope
Just honda or toyota
So true. My family members have all gone through various cars like Infiniti, Nissan, BMW, GM, Ford, Dodge and Mercedes over the last 25 years. Guess who still has her running and ALWAYS reliable 1994 Toyota Corolla? 😉
Real confirmation here, love this show
Floods are a special and different insurance in the US too
I hate insurance companies. Our governments are in bed with them.
So the long and the short of this is, that huge envelop of papers that every insurance company sends you when you open a policy, the ones that most people just sign the one form, send it back, and throw the rest some where never to be seen again, should actually be closely read before signing. If you have any questions or concerns, you should contact a layer, the internet, or the insurance company if it is about the wording of the policy, and your doctor if it is about questions on the medical form. Every single one of these situations would have been preventable had people actually read their policies, knew their coverage, and made sure all forms were fill out correctly. If you don't do that, and the policy becomes void due to improper filling out of the paper work, then you should be, if not then sue, entitled to a full refund of all premiums paid.
I fell and cut my brow open on that exact ice rink at Harbourfront during a lunch break in 1986. I was covered thanks to OHIP. I got stitches and was back at work that afternoon. I haven't tried to skate since!
Ice skating is too dangerous a sport/hobby indeed. A smart decision to quit it.
icbc canada: Industrial and Commercial Bank of China (Canada), formerly The Bank of East Asia (Canada), was founded in 1991; it was the Canadian unit of the Bank of East Asia Group in Hong Kong.
Flood insurance not included. And if basement floods you have to have a special addition to the policy. Now some companies won’t pay unless damage reaches a deductible of 5% of your home’s total value instead of a standard dollar amount deductible.
Taking advantage of senior citizens. It makes one wonder, is it a good thing to have insurance?
I have learned many many years ago to never buy insurance from a bank...they are not qualified brokers or often not even brokers.You are better off to get a life insurance policy than mortgage insurance as you will pay the same premium no matter how much your balance owing is. Life insurance is for a set amt. better bang for your buck! This is a great episode btw...again helping people avoid issues!!
I wish they had CBC in the United States
Victor they have smaller independent news sources that are fairly reliable and trustworthy. They are not mainstream media companies though.
Careful what you wish for. Taxpayers on the hook for billions every year and it is used as a tool of the Liberal party to limit full spectrum political views.
Camp Cookery exactly. there's alot of disinformation on Canadian media and they leave out and hide alot of important info.
You can have them. It will only cost u taxpayers 1.2 billion a year.
You are fully covered until you make a claim.
fantastic. Thank you guys
I have read here on the internet cases involving house insurance where the beneficiary has been paying for years insurance and suddenly something happens such as a roof problem. They get denied. Ridiculous.
The opening form for insurance should be Made more simple so that everyone will understand the term and condition.
When laws are required to regulate an industry, you can be sure that said industry is run by criminals. I look forward to the day that board members of a corporation are held personally responsible for their crimes. It's coming.
so what can we do besides read policies we have no hope to understand?
Wow! Natural disaster insurance coverage does not cover natural disaster damages?
How can this cost 340k $ ?? As much as a home for a surgery ?? Wow
It didn't cost $340k it was $160 but still a substantial amount, because you have to help pay for dead beats
The other problem too is that most insurance agents who sell the product/service does not even know what are the ACTUAL coverage when they explain it to the buyer/customer before signing any agreement.
Agents misrepresent it or even over talk about what they are selling.
Of all of these concerns or one one was fixed? Scary when I lost my job here in Bc credit card insurance and mortgage insurance told me to pound sand after 10 years of fighting and paying fees I gave up just brutal
Is there a marketplace list for America I should be aware of?
Travel agencies are insurance companies that sell vacations on the side.
Living in the states, and knowing people who work in the Airline industry... several times we have discussed this issue. Canadians buy travel insurance at a much higher rate than Americans. The reason as I understand it is that Canadian 𝘔𝘦𝘥𝘪𝘤𝘢𝘭 coverage makes you WAIT for authorization for a procedure. If you’re like that first couple who needed a bypass operation, fly to America, buy travel health insurance, get the work done with no wait, problem solved. It’s common and well known.
Billy Richard - Google it. Travel insurance in the states prior to a flight is close to zero. Canada, business is booming.
C'mon CBC! just exactly what was the wrong questions answered on the app for out-of-country ins coverage?
If you ask yourself a few questions, you can understand why "insurance" enjoys special status in Canada.
1 How many "government elected officials " own an insurance agency?
2 Are elected representatives in government obliged to behave in a neutral fashion when voting on legislation? Elected members are obliged to disassociate from their business while sitting in government. Superficially this seems to solve the problem. Insurance is mandated by the law of our land and is guided by regulations our government approves.
In practical terms there is no way to know the motivation for how a member votes! What could be done is to establish guidelines for how much representation any industry has in the house. Any tinkering would itself be suspect, clouding the democratic process. Those citizens who want to send the industry a message could vote for a person, not involved in insurance, assuming there is a person running, not a litigator, not owning or working in insurance. The most neutral action would be not to pass this cash cow to the private sector.
Easy to see insurance enjoys special status. I call this an entrenched lobby. Very difficult to truly fix it. Once we deemed auto insurance as compulsory, the insurer is in charge.
Ken Bowd
Only if the car is totaled, you'll get a new car or it's cash value before the accident.
But if they can repair it, then bam, diminished value
+EndlessFunctionality If the repair costs is close or exceeds the value of the vehicle (I believe in the current state, not new) - you get a new car.
Also, they will fix your car even if it's over $10,000 damage because fixing it is cheaper than paying for a new car.
The government should put a cap on how much damage they are allowed to fix.
@@Meeeksss i had a mechanic help fight an insurance company over this. There was no way that any mechanic would be able to repair the vehicle in question and he would restore antique vehicles. The insurance company kept saying there was someone locally that could. He finally got an answer as to who (his company). When he told them they were like there's a place two states away. They'd pay for the repairs there but not the transport of the car. His boss finally gave consent to over charge them for a repair that never happened.
manulife was great to me and my family. I made sure I filled everything out and had it proof read and I didn't do it last min....
So the randomly generated ad right under this video is for medical insurance, nice fail google
You're not covered and never be from Insurance. Build ur own fund aside by yourself. Otherwise God knows.
BCAA travel insurance only has an extra 10k deductible if you make a mistake on the health questionnaire--you are still covered.
The solution is OBVIOUS! We just have to buy Insurance Policies to cover our Insurance Policies! LoL
Once the insurance company sees a problem it is their responsibility to bring it to the attention of their customer. If it cannot be resolved the insurance company must return the premium to the customer. To keep the premium knowing full well that because of the way the application was filled out that the insurance company will not be honoring claims.
Youd wonder why some get arrested go to jail when the real ones keep doing etc? Hopfull more people speak out its crazy
Wow, a cbc video without comments disabled, i guess there is hope for this country yet!
11:14 insurance company, the insured or the owner
The last two are the same person.
I think there are new rules (based on court rulings) that state the error made on the application must relate to the cause of the loss otherwise it's still covered.
Oh my goodness my car ins was cancelled because I didn't check yes in the hard to see little box. Off to side bottom page
If the questionnaire is not in plain language why not just sue the insurer applying the Contra proferentem rule? And this is also why it makes sense to use a middle man - broker. A broker may also be sued for misrepresenting the insured on his behalf. Brokers also have error & omission insurance for those cases.
And to stay objective, you were speaking about those cases who were denied coverage. Now please make a report on all of those cases where insurance did pay.
My mechanic told me to never buy a car that's in an accident due to the frame. This is only because I didnt know anything about cars at that time. Now that I do, I would due a lot of test on the vehicles first.
I wonder if the premiums would at least be refunded if the policy wasn't providing meaningful coverage. Small consolation though.
In the US it's called GAP insurance. Covers diminished value. I've always had it on any financed or leased vehicle. Also, that type of confusing form would never fly in US courts. US also has national database of all accident claims matched to VIN Numbers.
Gap insurance only applies if the car is totaled and it covers the gap between what you owe and what the insurance company pays you (up to a certain %) And don't forget about the double gap insurance. One when you buy the vehicle and another from increased premiums from your insurance company.
the litte ones learning to skate are so cute.
No wonder insurance companies are one of the richest businesses and now one has to get a lawyer to fill out a travel health insurance plan? Ridiculous. BTW- ICBC is terrible if you get into an accident.
no joke I think that my be my father with the bandana and beer gut sitting with bad posture in a vacation photo. lmao, I literally can't get past that hahaha
In new zealand we dont really have diminished value i crashed a few and insurance fixed it still got msrket value as was fixed well and buyers never noticed
Is travel health insurance a Canadian thing? I'm in Nevada and I haven't heard much of travel health insurance. Ive also never traveled outside of the U.S. since I was 5.
2 things. travel insurance for outside of Canada is recommended because we dont pay for health care here, so we are not covered unlike a U.S
citizen with health care insurance that they pay for hopefully covered for international travel. if the U.S. citizen doesn't have health insurance then you are not covered anywhere anyway.
Insurance is a profitable business, thus they take more money from you than what they give back.
Always get lawyer before you sign. Read the fine print. Check it 100 times over yes yes.
One easy tweak to the legalities would be to legislate that in the event of a policy being retroactively declared null and void then the payments should be returned to the customer; after all the would-be client has obviously been paying, and usually through the nose, to maintain a contract that the company has just defined to be non existent.
For that matter I wonder how the rest of the legal framework views that situation; surely if money's changed hands without benefit being received on BOTH sides does it not that render the contract literally non existent, rendering the payment a mistaken transfer requiring correction?
The insurance companies have insurance for error and omitted information on application form or information given by selling agent. Or negotiate getting your premiums refunded. This may apply to all type of policies sold legally.
As I was growing up, I was taught that insurance companies took risks with their money by taking chances that their customers would not have accidents and they would make a profit because the insurer had no or few claims to pay out. If their customers had accidents, then the insurer would have to cover the damages and suffer the financial losses. This was part of insurance business risk factors. The older I got, I found that I was mistaken. The insurance company pays for damages they want to cover but then later raises the premium on the insured to recoup the costs paid out for the repairs or replacements. The insurance company also holds the claims they paid out against the insured with credit scores. Even if no accidents occur, the insurance premium is usually higher the next year. Why, you may ask? I've been told "because our business costs are higher or prices for repairs go up." I sincerely want to know just where are THE TRUE RISKS for the insurance company when they can recoup the monies by upping premiums and even use the customer's credit scores against them, even though the customer has a good credit rating with the insurer company. Many insurance companies are deceptive and purposely dishonest. There are many ands, ifs, or buts in the legalized language of insurance policies. Most customers are required to have car insurance but they do feel ripped off by insurance companies.
did peter ultimately get covered or not for diminshed valu
The insurance company accepted the payment with the answers submitted....Technically the paperwork submitted was accepted....The insurance company got out of making the correct amount of coverage with this change in answer.......
ATTENTION AMERICANS! You should check your CLUE report every year. A CLUE Report is a document that shows the seven-year history of loss associated with a person and a piece of property, such as a house or a car. Insurers use a CLUE report to determine the risk of insuring that property. Similarly, sellers or buyers may run the report to learn of any undisclosed damage and to determine an appropriate price for the car or home, in the event it’s being sold.
yes, why we buy our insurance?
Ever since the flooding of Calgary and Bow River areas has effected all Albertians and I don't mean our hearts for those that were effected by this but also all the residents of Alberta. When I renewed my home insurance only to find out that I will be paying more for insurance and when I asked the question of why this is, the person on the other end of the phone just stated that it was just time for them to increase thier policy prices and this was just shortly after the flooding of Calgary. I asked the question is this because of the flooding of Calgary and..there was silence on the other end. To break the silence I started talking and that since I live in Stony Plain which is just west of Edmonton and that there is no rivers close by... So no matter what happens, insurance companies will always find a way to make back there money.
There's a reason there's millions of words on those contract forms.
So if you are not aware of any heart disease, and you suddenly had heart disease, then your insurance is void??
Exactly! That's the whole scam. You shouldn't need a lay to get insurance of any form.
Insurance claims should be 100% guaranteed and cannot be null and void regardless of anything in the contract as even if you never did something it doesn’t mean it can’t happen.
And to top it all off, a insurance reject tax of 10 times the claims made a month of the insurance company rejects any claims and cannot be charged to the consumer.
In contract law it seems that they accept a payment and your contract must be accepted. Their questionnaire or contract is accepted by them accepting your payments. It sounds like basic fraud. I wish the story would have said whether they got their premiums back. That hospital case requires a confirmation of coverage, I thought, from the insurance company. Did the hospital call his insurance and verify coverage? Sounds very illegal if not unethical.
Insurance companies are NOT there to help you. They are there to make money, often in ways that will cheat you out of your money.
5:55 1. Filled wrong = No insurance. Need to be filled with a lawyer and doctor
12:30 2. After car crash, value decreases. Reduces value. Fight the company for coverage.
16:01 post claim underating.
17:00 Filling out any forms, you have to do research and make sure you fill it right.
I got an insurance ad when I was watching this.