Top 10 car insurance myths

Car insurance can be confusing. The following are some of the most common misconceptions about car insurance in Canada to help you weed through what’s fact and what’s fiction.

The colour of your car affects your insurance rate.

Most people may not know it, but the insurance industry is colour-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.

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

Parking tickets on their own do not count against your insurance, but unpaid tickets might affect your ability to renew your licence or licence plate. In extreme cases, it could even result in a licence suspension - which will affect your rate.

You can only lend your car to a driver who has their own insurance coverage.

Not so. You can lend your car to anyone who is not impaired and has a valid driver’s licence. Regardless of whether or not the person has their own insurance coverage, if you lend that person your car it is your insurance that will kick in should they be involved in an accident.

Everything you keep in your car is covered under your car insurance policy.

Nope. If you typically leave your lap top, golf clubs or your MP3 player in your car and it is stolen, your possessions are not covered under your auto insurance policy. Your auto insurance policy covers you for the damage or loss of your vehicle - not the items inside.

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

It depends. Your first minor speeding ticket (typically under 45 km/h over the limit) may not affect your insurance rate. But get two or three and you'll likely pay more. Any faster, like a major speeding ticket and your rates go up for sure.

Cheaper cars cost less to insure and luxury cars more.

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.

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

Not necessarily. Insurance companies rate cars based on the claims history of that vehicle. They look at things like accident frequency, repair costs, theft, vandalism and safety ratings for each make and model. When these factors are combined, a 4-door could cost more to insure than a 2-door model.

You will pay the same car insurance rate if you move.

Not necessarily. When you move, your rate will likely change because part of your premium is determined by where you live. For some it might mean paying less, for others, it might mean more. Whichever it is, don’t assume your current insurer will continue to offer you the best rate at your new address.

Shopping around for car insurance is only for bad drivers.

False. Too often, drivers think that only those with bad driving histories have to shop around. This is simply not true. Everyone, good drivers or bad, should shop around to make sure they’re getting the best price for the coverage they need.

It doesn’t matter which insurer you’re with, you end up paying the same rate.

Highly unlikely. In provinces, like Ontario, where insurers compete for your business, auto insurance rates vary considerably from company to company. Each insurer's car insurance rates are so unique to them that it's pretty safe to say that no two are alike.

Shop around to make sure you get the best price for the coverage you need.