5 common car insurance myths (debunked!)
We're not sure who's "fuelling" all these auto insurance myths, but there's certainly a lot of false information circulating about what contributes to your car insurance rates.
From red cars to white lies, many of these car insurance myths are not only inaccurate but also have the power to prevent you from purchasing the vehicle you want and getting the insurance rates you deserve.
Allow us to clear the air. Here are 5 common car insurance myths debunked:
MYTH: Thieves target new cars.
FACT: While no car is immune to the possibility of theft, it tends to be the slightly older, more common models that are the biggest targets.
According to the Insurance Bureau of Canada, which compiles a list of the top 10 most stolen vehicles in Canada each year, the 2007 Ford F350 was the top stolen vehicle in 2016. Behind it were Ford F350 models for the years 2006 through 2003. The more common the vehicle, the easier it is to sell for parts. This is just one of the reasons why thieves often go for older vehicles.
Get a quote now to find out if you could be saving money on your car insurance
MYTH: Red cars cost more to insure.
FACT: There are at least 99 factors that go into determining your auto insurance rate, but the colour of your car isn't one.
There is some stigma associated with red cars in particular. Many studies have been conducted on whether or not red cars are involved in more accidents, but results remain inconclusive. Though the colour red can be associated with anger, aggression and audaciousness, it is not a variable that is taken into consideration when determining your auto insurance rate.
MYTH: A cheaper car equals cheaper insurance rates.
FACT: A cheaper car payment doesn't necessarily mean a cheaper car insurance rate. When insurers are determining your rate, they are looking at your driving record as well as the insurance record of the make and model of your vehicle.
Certain vehicles are more prone to claims such as theft, which means they might cost a little more to insure. Many newer cars have enhanced safety features, which can result in a lower rate.
When purchasing a new vehicle, it is worthwhile to compare insurance quotes to see which vehicle will have lower insurance rates.
MYTH: All car insurance policies are the same.
FACT: In Ontario, drivers legally must hold an auto insurance policy that meets minimum provincial standards. However, depending on your driving history, your chosen deductible, any additional coverage and a number of other factors, your policy could vary vastly from another drivers both in terms of coverage and cost.
At OTIP, we work closely with a variety of insurance companies to ensure you're not only getting the mandatory car insurance coverage, but also the coverage that is right for you.
MYTH: The higher the insurance rate the greater the insurance coverage.
FACT: The insurance industry in Ontario is private and each insurance company offers its own rates. Although the Financial Services Commission of Ontario (FSCO) is responsible for regulating the insurance industry in the province including the rates, the private system results in a variance in insurance rates offered by different insurers.
FSCO recommends shopping for car insurance with a broker like OTIP. At OTIP, we are partnered with numerous insurance providers across the province, which gives us the ability to find the best rate for you at a company that values the education sector.
If you have questions about your auto insurance or any of the myths above, please don't hesitate to give us a call at 1-866-523-4111 to learn more.