Insurance can be confusing at the best of times, but here are some of the most common misconceptions about auto insurance coverage in Canada.
The color 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.
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.
Getting a parking ticket means your insurance rates will go up: Parking tickets by themselves do not count against your driving record or your insurance, but unpaid fines could affect your ability to renew your driver's licence or worse result in a licence suspension - which will affect your rate.
Getting a speeding ticket means your insurance rates will go up: That depends. Your first minor speeding ticket (up to 50 km/h over the speed limit) will probably not affect your insurance rate. But accumulate two or three and you'll probably be paying more to be insured. A major speeding ticket (more than 50 km/h over the speed limit) and your rates go up for sure.
Cheaper cars cost less to insure and luxury cars more to insure: 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.
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 insurance company I have auto insurance with, I’ll end up paying the same rate: Highly unlikely. Auto insurance rates vary considerably from company to company. In fact, each insurer's car insurance rates are so unique to them that it's pretty safe to say that no two are alike.
The last myth proves why shopping around to compare quotes is time well spent. Shop around for insurance quotes to make sure you are getting the coverage you need at the best available price.
source: www.kanetix.ca
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