5 Myths About Car Insurance

There’s a lot to consider when you are shopping for your car insurance, and everyone has advice and information they are happy to share. In the end, there can be a lot of noise that adds to frustration and confusion. Here are five common myths about car insurance that we run into the most often.

  1. “New cars are more expensive to insure because they’re more likely to be stolen.” In reality, the top 10 most commonly stolen vehicles in Canada for 2017 were 10 years old or older. In all likelihood, if your newer car costs more to insure than an older car of the same make and model it is likely because it would cost more to repair or replace the car in the event of an accident.
  2. “Red cars cost more to insure.” The colour of your car has NOTHING to do with the price you will pay. There are several factors that impact how much you will pay for car insurance, including the make and model of your vehicle, the way you drive, and where you live…but not colour.
  3. “If someone I lend my car to is in an accident it won’t affect my insurance.” Sadly this isn’t normally true. When you lend your vehicle to someone you are also lending your insurance policy to them.  If they have an accident your insurance company will be the one paying the bill and that accident will remain on your record
  4. “Men always pay more.” There are several factors used in determining the cost of an insurance policy, including age, driving record, where you live, how far you drive to work, and the year, make, and model of your car. While it is true that on average underage, 25 and younger, men pay more for insurance than females of the same category it is not always true.
  5. “My car insurance covers items stolen from my car.” Car insurance is there to protect you, your car, and your passengers in the event of an accident. It does not cover items that are stolen from inside the vehicle. Thankfully your home or tenant insurance policy will usually provide coverage for stolen items.

Do you know any other insurance myths you’d like to see busted? Contact us today for all your insurance myth-busting needs.