Whether online or from your friends, you probably hear all kinds of questionable advice about car insurance. Here, we’re going to bust common car insurance myths and set the story straight.
Myth #1: New Cars Are Stolen More Than Old Cars
Drivers often think thieves would rather steal new cars. After all, they’re nicer and worth more. However, the opposite is true. According to statistics from the Insurance Bureau of Canada, the top ten most stolen cars were between 10 and 20 years old.
Potential car thieves might go for older cars because they don’t have sophisticated anti-theft features to repel robbers. As an interesting side note, Ford pickup trucks were the most-stolen cars.
Myth #2: Insurance for Two-Door Coupes and Convertibles is More Expensive
Insurance companies usually determine your premiums based on the following factors:
- Repair/replacement cost
- Likelihood of theft
- Your insurance claims history
- Your accident frequency
You might think insurance companies charge higher rates for coupes and convertibles, but you’d be wrong. The number of doors alone doesn’t determine your rates.
Online insurance rates aggregators, such as Rates.ca, are a great way to shop around for the best car insurance rates in Canada.
Myth #3: The Colour of Your Car Affects Insurance Rates
Some drivers believe red or yellow cars are more expensive to insure than less exciting colours like medium gray or forest green. However, this is simply not the case.
Myth #4: The Car Insurance Company Will Cover Damage from Vandalism or Theft
When buying car insurance, it’s important to understand what’s covered. Most policies don’t cover damage from vandalism, theft, fire, or hail. To get protection from those types of non-collision risks, you’ll need to purchase comprehensive car insurance.
Myth #5: A Ticket Will Increase Your Car Insurance Premiums
Getting a parking ticket and promptly paying the fine will not result in higher car insurance rates. However, if you have many unpaid parking tickets and the government suspends your licence, the suspension shows up on your license, and insurance companies might raise your premiums.
Common traffic violations that cause insurance companies to raise your rates include:
- Speeding tickets
- Reckless, Careless, or Distracted driving
- Driving under the influence
Myth #6: If Your Friend Drives Your Car, Their Insurance Pays for the Accident
False! Car insurance applies to the car, not the driver. If your friend borrows your car and gets into an accident, it will go on your record and affect your insurance rate. Even if your friend is insured, your insurance company will foot the bill. Always be extra careful when you decide to lend your car to a friend. Make sure they’re trustworthy. If you’re wrong, you could end up paying for it.
Myth #7: You Can Prevent Insurance Premiums from Increasing by Not Reporting an Accident
You might choose to keep an accident to yourself, in an attempt to keep your premiums low. However, this strategy can come back to bite you. You should always let your car insurance company know about an accident. If you don’t, and they find out about it from another source (like the police or the other driver involved in the collision), they could consider your actions to be fraud or a failure to disclose. In these cases, they may decide to raise your premiums or even cancel your car insurance policy entirely.