Having the coverage discussion with your car insurer can be a bit confusing. In addition to sorting out your deductible and premiums, it may not always be clear how the insurer will treat you once you’ve actually been in an accident. It’s no wonder so many of us are tripped up by auto insurance; it’s an expensive and stressful milestone for drivers to overcome.
Possible one of the most confusing aspects to auto insurance is understanding when you’re covered – and what actions can void your coverage altogether. Here are some of the top car insurance myths debunked.
A Driver In Your Car Is Covered By His Own Insurance
This one’s a nope: if you loan out your car, your insurance stays with the vehicle. So if a family member or friend gets into a fender-bender while borrowing your car, you are on the hook to deal with the claim and the insurance rate possibly going up.
Red Cars Are More Expensive To Insure
Another false! Insurance companies don’t care about the colour of your car. Same goes for two or four doors. Your rate is determined by the make and model of your car and how often it tends to get stolen or be in accidents, along with the cost of repairs. While luxury sports cars will usually top the list for rates, your small, non sporty car might just have a higher rate than a comparable, cheaper car due to its unique stats.
Rates Are Standard Across Companies
Not true. Rates between companies vary widely. It’s best to always shop around because different vehicles and different drivers get wide ranging rates at different companies. If your own driving circumstances have changed – as in you’ve maintained a good driving record, or have upgraded to a safer vehicle – you may be eligible for a cheaper premium elsewhere. Compare insurance rates in your region to find your best option.
Brokers Get The Best Rate
Not always. Brokers tend to work with three to four insurance companies only. So your will get the best of that group, but it’s often a very small group.
Parking Tickets Impact Your Rate
This one is flat out wrong! Having very high or numerous speeding tickets can impact your insurance costs, but parking tickets are run just through a municipality and have no impact on your insurance. If you do have numerous unpaid tickets, though, it could affect your ability to renew your license.
No Fault Accidents Mean You’re Off The Hook
Sorry – your insurance company may investigate an accident in which the police did not charge you. If the company decides you were at fault under its rules, it could impact your future rates — regardless of what the police say.
That’s a lot of misconceptions. Bottom line: it pays to shop around, ask detailed questions of your insurer and make sure you’re getting the coverage you truly expect.
What do you find most misleading about car insurance coverage?