When it comes to auto insurance, misinformation can lead to costly assumptions. At EasyInsure, we often hear from clients who are surprised to learn that many of the “facts” they’ve heard about insurance are actually myths. Let's clear the air on a few of the most common—and sometimes surprising—auto insurance myths, and set the record straight on what really impacts your premiums.
Myth #1: The Colour of Your Car Affects Your Premium
Despite the enduring rumour, insurance companies do not factor in the colour of your vehicle when determining premiums. Whether you drive a red sports car or a black SUV, it’s the make, model, engine size, and claims history of the vehicle that matter, not the colour.
Myth #2: Lending or Borrowing a Car Means the Other Person’s Insurance Applies
In Canada, insurance follows the vehicle, not the driver. If you lend your car to a friend or family member and they get into an accident, it’s your insurance policy that will be responsible for any claims, not theirs.
Myth #3: Using Your Personal Vehicle for Work is Always Covered
If you’re using your personal car for business purposes, like making deliveries or visiting clients, you may not be covered under a standard personal auto insurance policy. It’s important to inform your insurer to avoid claim denials.
Myth #4: Older Drivers Always Pay Less
While experience plays a role, older drivers may see premiums increase if they have claims, or infractions.
Myth #5: Small, Inexpensive Cars Cost Less to Insure
Not always. Some small cars have higher repair costs, theft rates, or poor safety ratings, all of which can make them more expensive to insure.
What Really Impacts Your Auto Insurance Premium?
- Your Driving Record: Tickets, accidents, and claims can significantly increase your premiums.
- Vehicle Type and Use: The make, model, and intended use of the vehicle (personal, business, commuting distance).
- Where You Live and Park: Urban areas typically see higher premiums due to higher rates of collisions and theft.
- Your Age and Experience: New and young drivers generally face higher premiums.
- Coverage Levels and Deductibles: Higher coverage limits and lower deductibles will raise your premiums.
- Bundle and Save: When you are able to use the same insurance company for your other insurance needs, such as home or tenant insurance, you may be entitled to premium discounts.
Understanding how auto insurance works can save you from costly misconceptions. At EasyInsure, our goal is to make sure you have the facts, the right coverage, and the peace of mind that comes with it.
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