The Greatest Myths About Auto Insurance

Insurance can be confusing at the best of times, but here are some of the most common misconceptions about auto insurance coverage.

Myth: The color of your car affects your insurance rate.

Most people may not know it, but the insurance industry is color-blind. It doesn’t matter if your car is blue, red, silver, white, or black, your insurance rate for that make and model of car will always remain the same.

Myth: A 2-door car is more expensive to insure than a 4-door.

Not true. In fact a 4-door is often more expensive. This is because insurance companies look at the price of the car, repair costs, theft frequency and its previous claims history when determining your rate.

Myth: Getting a parking ticket means your insurance rates will go up.

If that were the case, we’d all be singing the blues. Parking tickets by themselves do not count against your driving record or your insurance, but unpaid fines could affect your ability to renew your driver’s licence or worse result in a licence suspension – which will affect your rate.

Myth: Getting a speeding ticket means your insurance rates will go up.

Not necessarily. Your first minor speeding ticket (up to 15 mph over the speed limit) will probably not affect your insurance rate. But accumulate two or three convictions and you’ll probably be paying more to be insured. A major speeding ticket (more than 15 mph over the speed limit) and your rates go up for sure.

Myth: You don’t have to pay your deductible if the police said the accident was not your fault.

The police may not have deemed you criminally responsible for the accident, but it’s your insurance company who has the final decision as to whether you pay your deductible or not. If they investigate the accident and rule that it’s not your fault, they have the right to waive your deductible. Until then, you better be prepared to pay…

Myth: Cheaper cars cost less to insure and luxury cars more to insure.

Not necessarily. The premium you pay for your auto insurance is based on many factors including the price of the car, its repair costs, theft frequency and its previous claims history. When these factors are combined, a cheaper car could cost more to insure than a luxury model.

Myth: It doesn’t matter which insurance company I have auto insurance with, I’ll end up paying the same rate.

Not true. Auto insurance rates vary from company to company – sometimes by hundreds of dollars per year!

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