It's often difficult to separate fact from fiction when it comes to car insurance, especially when so many myths and misconceptions exist. To help you better understand the ins and outs of your car insurance, here are seven of the most common insurance myths — debunked.
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 a collision.
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 collision, so I am not at fault
False — The police may not have deemed you responsible for the collision, but it's your insurance company that has the last word in determining fault in a collision.
Myth #4: If my friend drives my car and causes a collision, it won't show up on my insurance record
False — If you lend your car, you lend your insurance, too. If you are the policyholder and registered owner of the vehicle, the collision will show up on your record even if you were not involved in it.
Myth #5: My car insurance rate will be similar to my next-door neighbour’s
False — Car insurance rates vary from person to person based on a variety of factors, including your age, years of driving experience, marital status, driving record, vehicle make and model, and where you live.
Myth #6: Parking tickets drive up your insurance rate
False — Parking tickets do not affect insurance rates. However, failing to pay your parking tickets can result in your licence being suspended for unpaid fines and suspensions, which could increase your premium.
Myth #7: There’s no point in shopping around; all car insurance rates are relatively similar
False — In provinces with private auto insurance (all but British Columbia, Saskatchewan and Manitoba), companies compete for your business. Rates vary considerably from company to company for your driving profile, so it always pays to shop around.
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