4 myths and 4 truths about car insurance
Does the colour of your car affect your auto insurance?
While some of us may not be driving as often as we used to (due to the pandemic), chances are we’re still paying for car insurance.
There’s a lot of information (and misinformation) out there about auto insurance — around what affects your rate, and how to go about switching providers. Sometimes, it’s hard to tell the difference between a myth and the actual truth, especially when it comes to insurance.
tap here to see other videos from our team.
It’s time to put those myths to bed.
Myth: You pay more for insurance if you have a red car
The insurance industry doesn’t care about the colour of your car. Your premium is not affected by your vehicle’s colour so go ahead and buy that red car.
Truth: The model of car you drive impacts your premium
Myth: You can’t switch insurance providers until your policy comes up for renewal
If you’re not satisfied with your current insurance provider, you can make the switch to a new one at any point in the duration of your policy. In fact, switching could mean savings of hundreds of dollars a year.
Truth: Speeding tickets will raise your insurance rate
While it may not be an immediate increase, it will go on your driving record. When it’s time for your insurance to be renewed, your provider will look at your driving record and likely increase your rate.
It doesn’t have to be a big speeding ticket, either. Just going 15 km/h over the posted speed limit can earn you a ticket and affect your insurance premium.
Myth: Using your personal vehicle for work will increase your premium
While you might be covered by the ride-sharing company’s insurance when you’re on the clock, it’s a good idea to tell your insurance provider because if you get into a collision, it can be difficult to know which insurance company may be liable. Plus if you don’t, you run the risk of invalidating your personal insurance coverage if you’re using a personal vehicle for commercial purposes.
There are insurance companies that provide coverage for drivers who use their personal vehicles for commercial purposes.
Truth: Where you live impacts your insurance premium
Location is considered by insurance providers when setting your rate. If you live in an area with high instances of auto theft or in an area where the insurance company has had to pay out a high number of claims, you could very well end up paying more for your coverage — even if you’re a safe driver.
Myth: Parking tickets affect your premium
Those parking tickets in your glove compartment won’t affect your insurance premium, but they could affect your ability to renew your driver’s licence. So it’s still a good idea to stay on top of paying them.