It's often tough to separate fact from fiction when it comes to car insurance,
especially when a number of myths and misconceptions exist among Canadian
To help you better understand the ins and outs of car insurance, InsuranceHotline.com has debunked 7 of the most common insurance myths: Myth # 1 - "No fault insurance means it's not my fault" False - No fault insurance means that your insurance company pays for your damages regardless of who's at fault in an accident.Myth # 2 - "Red cars cost more to insure"False - The colour of your car has absolutely no impact on your car insurance rate. Insurance companies focus on the year, make and model of your vehicle to determine the premium.Myth # 3 - "The police did not charge me with the accident, so I am not at fault"False - The police may not have deemed you responsible for the accident, but it's your insurance company who has the last word in determining fault in an accident.Myth # 4 - "If my friend drives my car and causes an accident, it won't show up on my insurance record"False - If you lend your car, you lend your insurance! As long as you are the policyholder and registered owner of the vehicle, the accident will show up on your record, even if you were not involved in the accident.Myth # 5 - "My car insurance rates will be similar to my next door neighbour"False - Car insurance rates vary from person to person based on a variety of factors, including your age, driving experience, marital status, driving record, type of vehicle and where you live.Myth # 6 - "Parking tickets drive up your insurance rates"False - Parking tickets do not affect insurance rates. However, failing to pay your parking tickets can result in your license being suspended for unpaid fines and suspensions will increase your insurance rates.Myth # 7 - "No point in shopping around, all car insurance rates are relatively similar"False - Insurance companies compete for your business. Rates vary considerably from company to company for your driving profile, so it always pays to shop around.Still not a believer? Take a few minutes and get a quote for free on InsuranceHotline.com and compare the lowest rate available to what you are paying now. Instantly, we'll search for the lowest insurance rate from over 30 of the top insurance companies in Canada.