Five car insurance myths that are way off track
Before you hit the road, it’s vital to know what will actually cost (or save) you money
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For something drivers in every province are required to have, there are still a lot of myths surrounding car insurance.
And buying into these popular misconceptions can be costly. So let’s dispel five common pieces of misinformation about car insurance.
One of the most persistent myths about car insurance is that red vehicles cost more to insure. That’s just not true.
In fact, none of the information you give your insurer — such as your car’s make, model, year and vehicle identification number (VIN) — tells them what colour your car is.
Car insurance premiums in Canada are influenced by other factors, though, including make, model, price, engine size and the vehicle’s overall safety record. The cost to repair the car after an accident will also impact your rate.
4. Accidents and tickets affect my rate forever
You may be relieved to hear that tickets only stay on your driving record for three years and accidents for six years. If you keep a clean record for the rest of that period, you should be back to more affordable premiums in no time.
And if you have accident forgiveness on your policy, your first at-fault accident will be forgiven provided there are no injuries. This means it won’t affect your rate in the short term.
5. All car insurance companies have similar rates
If that’s what you think, chances are you’re overpaying.
Experts recommend you review at least three different quotes before selecting an insurance policy. You’ll find there’s actually a whole range of different policies at varying price points.