Auto123.com: 15 Car Insurance Myths Unveiled

For something as common as car insurance, there are a whole lot of myths about it. The trouble with car insurance myths is that they can end up influencing your decisions and costing you money. The following myths, compiled by Kanetix.ca, will help you sort what’s fact and what’s fiction in the world of car insurance.

   1. The colour of your car affects your car insurance rate.

Most people assume otherwise, but in truth it doesn’t matter if your car is blue, red, silver, white, or black. Your car insurance rate will not be impacted by the colour of your car.

   2. Rates are higher for two-door vehicles.

While a two-door may look sportier, it doesn’t mean it will cost more to insure. Insurers look at things like the car’s accident frequency, repair costs, theft frequency, vandalism and safety ratings—not the number of doors it has when determining the insurance rate.

   3. Rates are higher for new cars.

While there is a correlation between the value of a car and how much it costs to insure, a new car won’t always be more expensive to insure than a used one. New cars usually have more safety features and advanced anti-theft features, which can actually bring down rates.

   4. New cars are more attractive to car thieves.

Each year, the Insurance Bureau of Canada (IBC) tallies up the most stolen vehicles in Canada, and each year the list typically shows that older cars are stolen more often than new cars. In fact, the most recent list shows that the most stolen cars were made between 2001 and 2007.

   5. If you lend your car and the driver gets in an accident, it’s not your insurance—but theirs—that pays out any claims.

In most cases, when you lend your vehicle, you are essentially lending your insurance as well so be mindful of who you hand over your car keys to.

Read the rest on the Auto123 website.