Most common insurance myths you should know

Car insurance is mandatory for all drivers in Canada. Thus it is not surprising that people are continuously generating myths around it.

Some of them at a fundamental level look quite justified. The others myths with closer examination only allow us once again to understand that people can create them on the move. The worst thing here is that they are going to try to convince others, even without having a strong argument.

Therefore, it is necessary to find information on a variety of sites as you will be able to see whether a particular myth is true or not. It takes much time that could be spent on something more useful.

In this article, we are going to dispel the most popular car insurance myths and explain why you should not believe them anymore.

accident with cars

 

New cars are stolen more often than older ones

If you think logically, new things should always attract thieves more often than older things. According to statistics from the Insurance Bureau of Canada, within the list of the ten most popular cars for thieves, you can only find the old models made from 2004 to 2010. If you delve deeper into this issue, you will learn about a large flow of used vehicles that in half of the cases go to disassembly (which allows you to sell individual parts of the car at a higher price). In this case, this myth is almost entirely demolished.

Women pay less for car insurance than men do

To some extent this myth is true, but there are nuances which are not well known. Yes, men up to 25 years according to statistics pay a lot more than women. However, upon reaching this age gender no longer plays a role in determining the amount of the monthly payment. This means that you and your partner will pay the same only if your driving experience is not different.

You will always pay more if you have tickets and accidents

If you have multiple tickets or got into the accident, it is likely that you will have an increased premium over the next three years (tickets) or six years (accidents). However, now you can find insurance companies who can forgive their customers for several minor violations or accidents not to increase the amount of coverage. In any case, it is best to be a careful driver who follows all the rules of the road. In this case, you will always be on the safe side in all respects.

The insurance company will always cover damage to my car

No, this is not always true. All damage received during an accident will be covered if you have purchased collision coverage. It is an option, which is not always included in packages offered by the insurance companies. If the accident were not 100% your fault, all damage would be covered as prescribed in the contract between you and the company providing insurance services.

The insurance company will cover the entire amount if your car is stolen

Another misconception, which is believed by a significant number of people. Unless you have comprehensive coverage, the insurance company will not cover damage caused by vandalism, hail, fire, accidents which involve wildlife (except some parts of Canada), and theft. For such cases, if you do not have comprehensive coverage, you might be out of luck. If you do have extra coverage, the payment of the full amount is still not guaranteed.

Every insurance company has similar rates

Each company may differ in their demands to the driver, which will also affect the total amount of the monthly payment the customer is going to pay. Sometimes, it can vary from ten to fifty dollars, but sometimes the difference could be more than one hundred. We advise you to study the market and offers carefully before making a final decision. Insurance companies have their own data and prices on driving history of each person and particular models.

Higher rates mean more coverage

Some people may find that the more they pay for insurance, the more benefits they receive but this is not always the case. If you do buy additional coverage like comprehensive coverage, then you will protect yourself from a greater number of unforeseen circumstances. If you have a lower deductible, your insurance premium will also be higher.

In conclusion, we would recommend that you always study the subject carefully before making conclusions. What you heard from one person is not always true because often people talk about things from their point of view. Only after you’ll have an idea about what car insurance is and by doing research about different companies, then you can save several hundred dollars a year, and always understand what will be covered during the incident and what isn’t.

 

By | 2017-08-10T00:37:05+00:00 June 8th, 2017|Insurance, Lists|

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