Top 5 Myths about Car Insurance

Top 5 Myths about Car Insurance

If you’ve steered clear from buying that bright red car because you think your auto insurance premium will go up, you’re not alone. When it comes to auto insurance, there are a lot of things to consider – and everyone seems to have opinions and advice to share. However, not everything you hear is actually true. 

We know that buying car insurance can be confusing enough. To help make shopping easier, we’ve debunked 5 popular auto insurance myths: 

1. “Red cars are more expensive than any other colour of vehicle” – This is false. There are several factors that determine the cost of your premium such as the make and model of your vehicle, where you live, the way you drive – but colour has no impact on the cost. 

2. “If my friend gets in an accident when he borrows my car, it won’t affect my insurance record.” If you give a friend permission to drive your vehicle and he gets into an accident, the claim will likely remain on your file and could affect your premium or other parts of your coverage. Before allowing someone to borrow your vehicle, always consider asking a few questions about what they are using the vehicle for and where they are going. If you are not confident in someone else’s driving skills then it might not be a good idea to lend them your car.

3. “Brand new cars are more expensive to insure than older cars because they’re more likely to be stolen.” This is not always true. According to IBC, the majority of the top 10 most frequently stolen vehicles in Canada were at least 10 years old. If your new car does cost more to insure than your older car of the same make and model, it is most likely because the new car would cost more to repair in the case of a collision.   

4. “My car insurance company will cover items stolen from my car.” Unfortunately, this isn’t true. Unlike home insurance or tenants insurance, your policy will not cover items that are stolen from inside your vehicle. 

5. “Men always pay more for car insurance than women.” Contrary to popular belief, men don’t always pay more for car insurance. Every auto quote is tailored to the individual driver and is based on several factors such as age, driving records, where they live, how far they drive to work and the vehicle’s make, model and year. 

Be sure to speak with a licensed broker when you are shopping for car insurance. Your broker is there for you to compare products and prices to find the best coverage for your needs. For more information or to speak with one of our brokers today, call us at 1-800-900-2009 or email This email address is being protected from spambots. You need JavaScript enabled to view it. 

Source: Economical 

 

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