Buying car insurance is perhaps the single most important decision that you can do to protect one of your most expensive investments, your car. Unfortunately, looking for cheap, but dependable car insurance may be a bit challenging, especially if you are not aware of the facts surrounding the industry.
One of the greatest problems faced by car owners is that there are a number of myths that are being proliferated for the purpose of marketing and advertising. Keep in mind that accurate information on car insurance can only be retrieved from reputable sources.
This means that you should not consult your neighbour or fellow employee, unless of course they work in the auto insurance industry. The truth is that there can be a number of complexities that are associated with insurance policies in general. As a car owner, you should know the facts without being overshadowed by the myths and controversies out there.
Shopping for Insurance
When looking for car insurance quotes, it’s best to know the real facts behind insurance policy. Let’s have a look at common insurance myths that are being spread amongst us:
Car Insurance Myth 1: The color of the vehicle can affect the cost of car insurance coverage.
Fact: It would be quite difficult for the car insurance industry to defend why a red car would be more expensive to insure compared to a blue or green one. The problem is many licensed drivers believe this myth to be fact. The reality is that rarely would insurance providers ask the colour of the vehicle when it comes to the calculation of the car insurance quote.
This colour myth is one of the oldest in the industry which quite surprisingly continues to pervade even today. The curious thing about this myth is that there is a perception that the color red is the most expensive when it comes to car insurance coverage. The reality is that computation of insurance is usually based on the model, make, year, body type, age, and engine size of the car more than anything else. Colour does not usually play a role the computation process.
Car Insurance Myth 2: The insurance company will provide coverage when the car is vandalized, stolen, or damaged by fire or hail.
Fact: This is true only if you have purchased comprehensive car insurance coverage. In reality, you’re required to purchase liability coverage. This means that the insurance protection you have only takes into consideration the potential damage you may cause others while on the road. In order to get full protection for your car, you need not only a comprehensive coverage but collision coverage as well. These will deliver car insurance protection for virtually all kinds of damages.
The need for a comprehensive car insurance coverage lies on the fact that any damage on your vehicle that is not caused by an accident will be paid for. This means that vandalism, fire, theft, hail, and even damages from accidents that involve animals will be shouldered by the insurance company. The collision coverage on the other hand, will take care of any damages that are the result of vehicular accident that is your fault. In Ontario, a claim for an accident that is not your fault which results in damage to your vehicle will be paid out under the direct compensation section of the policy which is part of the mandatory insurance coverage.
Car Insurance Myth 3: New cars are more attractive to car thieves making them more a target of carjacking.
Fact: Statistics from Insurance Bureau in Canada’s (IBC) top 10 most stolen cars in 2010 reveal that older cars are being stolen more than newer contrary to the perception pervaded by the myth. In fact, the car insurance report revealed that some of the ten most stolen cars are made on the years 1997 to 2006, which is the latest year. This statistical data clearly demolishes the claims of the myth that newer cars are more susceptible to being stolen.
Without a key, a professional thief is able to steal a car in approximately 30 seconds. Also according to IBC, eight out of ten vehicles on Canada’s most stolen cars list do not have an approved electronic immobilizer, which prevents thieves from starting a car without the key. This means that there is actually a bigger market for older cars, thereby making them more attractive to thieves.
By clarifying some of the common myths and facts surrounding car insurance policies and the industry as a whole, better coverage can be obtained by car owners when researching for car insurance quotes. Moreover, being able to successfully identify which is a misconception and which is reality will make car insurance more meaningful and functional for car owners, as well as help them avoid scams during online shopping.
