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5 Myths About Car Insurance

When you are shopping for car insurance, there is a lot of information to consider before you buy. We break down the top 5 myths about car insurance.

5 Myths About Car Insurance

“Red cars cost more to insure than any other color of vehicle.”

Contrary to popular belief, the color of your car has no impact on your premium, so driving a red car does not mean you’ll pay more for car insurance. There are several factors that go into determining your premium, including things like the make and model of your vehicle, your age, and where you live — but color doesn’t come into the equation.

“If my friend gets in an accident when he borrows my car, it won’t affect my insurance record.”

Unfortunately, this isn’t usually true. If you lend your car to a friend and they get in an accident, your insurance company will likely need to pick up the tab, and the claim will probably remain in your file. Accidents happen, and that’s why you have car insurance — but remember, when you lend your car to a friend, you’re lending them your insurance, too.

“Brand new cars are more expensive to insure than older cars because they’re more likely to be stolen.”

Actually, when it comes to auto theft, the majority of the top 10 most frequently stolen vehicles in Canada in 2016 were at least 10 years old — so if your brand new car costs more to insure than your older car of the same make and model, it is likely because the new car would cost more to repair or replace in the event of a collision.

“My car insurance company will cover items stolen from my car.”

Your car insurance company is there to protect you, your passengers, and your vehicle when an accident happens — but it won’t cover items that are stolen from inside your vehicle. The good news? Your home insurance or tenant insurance policy will likely have your back if your personal belongings are stolen from your car.

“Men always pay more for car insurance than women.”

The cost of your car insurance is impacted by several factors, including things like your age, your driving record, where you live, how far you drive to work, and your vehicle’s make, model, and year — and each car insurance quote is tailored to the individual driver. While it’s true that on average, men under the age of 25 generally pay more for car insurance than women of the same age (because they’re statistically riskier drivers to insure), men don’t always pay more for car insurance.

Source: Economical Insurance

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