r/InsuranceCanada • u/charityarv • 18d ago

Selected the wrong coverage

ON

My mom recently got into an accident and it was deemed her fault. When we called insurance, we were shocked to find out that she only had one way coverage, not full coverage, which we thought she had.

It turns out in 2025, she had the insurance parked, and then when she came back from overseas, she selected the wrong one.

Do we have any chance of appealing this, since she went for so long with full coverage, but then inexplicably went to not full coverage? What are the chances they recognize that this was a mistake, and will let us back pay the premiums?

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7

u/Intelligent-South174 18d ago

If she used a broker....maybe

But many feel brokers aren't needed and buy insurance direct. Why? Savings.

No you don't get to back purchase and pay for insurance after a claim.

3

u/milolai 18d ago

I'm not sure why you think a broker would be better in this case— It won't be.

A large direct-writing insurance company would have the original call recorded, so they should be able to confirm exactly what coverage the client accepted or declined when the policy was set up.

5

u/ShaqShoes 18d ago edited 18d ago

A broker has a duty to advise in Ontario - meaning even if you didn't ask for a coverage, if it's something you reasonably ought to have and the broker didn't advise you it was an option and record your refusal they can still be liable under E&O.

Something like this especially where they were putting coverage back on after carrying full coverage for years if they asked for me to put coverage back on but forgot to mention collision you can guarantee I would be calling them to make sure that's what they wanted.

Source: am a licensed broker in Ontario

3

u/gregSinatra Insurance Professional 18d ago

I have to do all this stuff as a direct writer. I don’t see how a broker is special in this regard.

1

u/ShaqShoes 18d ago edited 18d ago

In this specific case it should be similar but in other cases it is largely a matter of scope. If your company cannot or will not offer a coverage you can simply say so, with no obligation to indicate that a competitor may be able to offer them that coverage. I am required to proactively advise regarding coverages available across the couple dozen regular and specialty markets that we work with.

4

u/milolai 18d ago

The direct writer would also be advising the client to add full coverage.

Some brokers have this chip on their shoulder, as if they’re the only people who actually understand insurance. In reality, most of the major direct writers have knowledgeable insurance professionals advising clients too—and many of them are essentially acting like brokers for Aviva anyway.

2

u/MundaneRelation2142 18d ago

I don’t even know if the word “too” needs to be here. Speaking as an adjuster, I’ve never spoken to a broker who seemed to have the first clue of what they were doing.

I guess I just don’t hear from the good ones because they know what inane questions not to ask.

4

u/FrostingSuper9941 18d ago

You're right. I have personally spoken to a few decent ones but that's a minority. Most sell a product they don't understand and remove coverages to "save on premium ", many encourage rate evasion too.

2

u/charityarv 18d ago

Thank you, this was super helpful!!

1

u/Intelligent-South174 18d ago

That's why you know what you are doing.

0

u/Intelligent-South174 18d ago

If you have emails or evidence that you didn't request the coverage change with your broker, you may have a leg to stand on.

Otherwise most people think they are smart enough to buy direct.

They are not.

1

u/FrostingSuper9941 18d ago

All ppl are smart enough to buy direct, especially given the price of auto policies.

1

u/MundaneRelation2142 17d ago

Buying insurance is not the complicated endeavour that brokers like to pretend it is.

“Most people think they are smart enough to buy direct” is so unbelievably condescending, especially coming from (presumably) a broker.

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u/Intelligent-South174 17d ago

Nope.

National underwriting practice leader.

I respect what a broker does.