Young Canadians sue CPP Investments over climate risks + MORE Oct 30th

The auto insurance world is rife with misconceptions, experts say, and not knowing fact from fiction could end up costing drivers thousands of dollars. 

There are several reasons why insurance myths exist, said Steven Harris, licensed insurance broker and LowestRates.ca expert. “(Insurance contracts) are written in legal terms and it doesn’t always translate into everyday language,”  he said. “There can be a little barrier there.” 

Harris said people also often assume they’ll be covered against various damages or liabilities, but don’t necessarily know or understand exactly what’s in the policy. A lot of people draw upon personal experiences of friends and family and make decisions based on that, he added.

Here are some of the most common myths.

Red vehicles cost more to insure

The most common question Harris said he comes across is whether owning a red car costs more to insure. The reasons underpinning the misconception are broad, including a red car could make you more noticeable to police, the driver could be more prone to speeding or careless driving or that the colour elicits a negative psychological response from other drivers…

Ask MoneySense
My parents owned a cottage (the only property they ever owned, they couldn’t afford a house), and it was transferred to my mother after my father died. She “sold” me her cottage for $1 on March 19, 2009. I recently read an article about how that is NOT “legal” and have had sleepless nights since. The notary who completed the deed of transfer did not inform either my mother or me of any tax implications, so no taxes were paid.

My mother died on January 3, 2011. The estate was complicated because she had money in Switzerland she did not tell anyone about, and my brother and I (executors and heirs) had to pay penalties, back taxes as a result—not to mention hefty legal and accounting fees. So, not much “inheritance” left.

I am really concerned that I will be hit at some point with a huge tax bomb and penalties that will wipe out my savings. (I’m 69 years old.)

–Susan

I am sorry to hear about the stress that you are experiencing, Susan…

Canada’s largest pension fund is being sued by four young Canadians who claim that CPP Investments is failing to properly manage climate-related financial risk.

The four allege in a lawsuit filed in the Ontario Superior Court of Justice on Monday that the investment manager for the Canada Pension Plan is breaching its duty to invest in their best interest, and subjecting their contributions to undue risk of loss by its approach. “I do not want to be suing my pension manager, but I want to retire on a stable pension into a livable future,” said 20-year-old Aliya Hirji, one of the four plaintiffs, at a news conference in Toronto.

CPP faces lawsuit on fossil fuel ties

The lawsuit, filed with the support of Ecojustice and Goldblatt Partners LLP, claims CPP Investments is drastically underestimating the financial implications of climate change, as well as worsening its harms by continuing to invest in the expansion of fossil fuel production.

Karine Peloffy, a lawyer and sustainable finance lead at Ecojustice, said the lawsuit will be a legal test on how the fund should approach climate risks, given its obligations…