For years there have been old wives tales about what factors increase or decrease your insurance rates, what to do or not to do to help your premium amount and most of them are not factual. So we are here to help demystify these stories.
MYTH: Your insurance may vary depending on the colour of your car. Many are thought to believe that red cars yield higher insurance premiums. However, this is never the case. Truth is, insurers aren’t as interested in the colour of your car, but more the details about the driver.
MYTH: Higher rates give you more coverage - Nope, that isn’t always true either. Two people could have the same coverage but one of them pays more because of their driving history, not because of better coverage.
MYTH: The only factors affecting insurance quotes are your age and driving experience. - Nope, Although these are contributing factors for sure, where you live, the type of vehicle you drive, even your credit history in some cases can also affect your rates in some geographical regions. Alberta’s factors will vary from that of Ontario’s.
MYTH: You don’t have to pay your deductible if the police said the accident was not your fault. Right or wrong? Well this one, it depends. You will have to determine with your insurance provider whether or not you have to pay the deductible based on the facts of the accident.
MYTH: Cheaper cars are often less to insure. Certain car models may be cheaper on premiums, but it is not guaranteed that cheaper cars will be cheaper to insure.
MYTH: If you get into an accident or get a ticket, rates will go up. This really depends on your insurance company as some have accident/ticket forgiveness. But keep in mind that it would also depend on the reason as to why you got into an accident in the first place. For example, you can check out this article that answers the question is driving high illegal in Canada.
MYTH: Insurance is hard to understand: Not true with us! We want to help you with the process. Speak to one of our insurance advisors to help get you set up with the right insurance rate from a leading providers in Canada. In addition, we have a lot of educational content here even for very specific things such as whether or not does home insurance cover theft outside the home in Canada or a guide on high risk home insurance.
Check out these celebrities and their crazy insurance policies. as well.
These details are according to different sources: i.e. InsuranceHotline, DesjardinsGeneralInsurance, IBC, TDInsurance, and Insureye
Check also this article on 10 myths of car insurance rates in Canada.
