There are some interesting myths that people believe are true. Many wonder if red cars really do factor into insurance costs. Others believe that all insurance rates are the same no matter the company. Today, we’re going to set the record straight by debunking some of the most common auto insurance myths!
Myth: Red Cars Are More Expensive to Insure
One of the biggest auto insurance myths is that red cars are more expensive to insure. In truth, colour has nothing to do with insurance at all. What matters when it comes to car insurance is the address the vehicles are kept , their make, model, year & engine size and the driver themselves . The reason this myth has propagated is that sports and exotic cars are more likely to come in red, and naturally, those types of cars are generally higher cost. But again, colour has nothing to do the insurance premium.
Myth: All Car Insurance Providers Charge the Same Rates
There are many times where customers have been amazed that our rates are less than other companies because they assumed all insurers charge the same premiums. That assumption is definitely not true! All insurance providers set their rates based on their own experiences, calculations and claims. The most common reason why you might find two providers with the same rates, is that they are the same company under different titles.
Myth: Parking Tickets Increase Insurance Costs
There is no truth to this myth at all. While a parking ticket will definitely set you back financially, it has no impact on your car insurance rate. Parking tickets are one of the only tickets that have no effect on your insurance. That said, we at isure recommend always parking legally and with proper paid parking. A little inconvenience can save you a TON by avoiding parking tickets.
Myth: Auto Insurance Covers Stuff in the Car if Stolen
Many people do believe that auto insurance covers personal belongings. If someone breaks into your car and steals electronics, jewelry or other valuables, your auto insurance will usually NOT cover them. Those items are covered by homeowner or renters’ insurance (if you DON’T have it, get in touch today for a quote!). Auto insurance covers you, your passengers and your car but it does not cover personal items.
Myth: Insurance Companies Make Tons of Money
Many feel that insurance companies make a ton of money from the premiums they collect. However, that’s not true. In fact, based on statistics by the Insurance Bureau of Canada, for every dollar an insurance company brings in:
- 55-cents goes back to the policy holders in the form of claim payments.
- 21-cents goes to paying operating expenses and salaries.
- 16-cents goes towards taxes to the community.
- 8-cents are kept as profit.
If you have any other insurance questions, don’t hesitate to get in touch with us at 1-877-514-7873 ! We will be happy to answer any myths you’ve wondered about. As always, we’ll also happily provide you with a quote on your car insurance – and save you a few bucks in the process!