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Car Insurance Myths: Separating Fact from Fiction!

In partnership with SSQauto

When it comes to car insurance, a number of myths or pre-conceived notions persist in circulating, causing frequent confusion. In an attempt to set the record straight, here’s a little exercise in true-or-false that should clear some things up for you.

I own a red car, therefore I’m going to pay a higher premium.

False. It matters not if your car is red, black, blue or hot pink. Its colour has absolutely no effect on the insurance premium you pay.

Factors that will influence your premium include:

•    The mileage accrued on daily and yearly bases
•    Where you live
•    Your general driver profile (age, gender, etc.)
•    Your driving record (infractions, accidents, demerit points)
•    The year, make and model of your vehicle
•    The warranty and deductible amount you choose
•    Volume discount (if applicable)

I’m covered by my employer’s car insurance if I use my vehicle as part of my job.

False. Even if you use your car as part of your employment, your employer’s car insurance does not cover you in the event you have an accident. It’s essential that you inform your car insurer that you use your vehicle for work to ensure you’re adequately covered.

I received a parking ticket. Good thing that doesn’t affect my insurance premium.

True. A parking ticket will not be factored in to your insurance file. On the other hand, receiving a fine for speeding or for dangerous driving will negatively affect your driving record, and most certainly lead to an increase in your premium.
When I’m involved in an accident, responsibility is always determined by the police.

False. Your insurance company will determine the share of responsibility of each party involved in the accident. Which means there is no need to call in the police, unless there are injuries involved. Nonetheless, it’s a good idea to fill out an accident report to ensure that your insurer gets all the information they need.

I had some items stolen from my vehicle. Good thing I’m covered by my home insurance.

True.  Car insurance covers what is permanently attached to your vehicle, for example the audio system or the alloy wheels. Any other item that is not a permanent part of your vehicle, such as a set of golf clubs or skates, is covered by your home insurance.