1. The colour of your car affects your insurance premium

MYTH.

The colour of your car does not affect your insurance premium. However, the make, model and year of your vehicle will be considered, but not the colour.

2. Your insurance premium will increase after an accident

MTYH.

While it's not guaranteed, it's possible that being held responsible for an accident could affect your insurance premium. It's important to keep in mind that increases in your premium might not be related to an accident at all. Insurance rates are adjusted periodically to reflect things like inflation and accident statistics for drivers of similar vehicles. So if you notice your premium going up, it might just be due to factors beyond your control.

3. Insurance companies can charge whatever they want

MYTH.

The amount insurance companies can charge for coverage is subject to strict government regulations and they cannot arbitrarily increase your premiums. If you’ve noticed your premiums increasing regardless of your clean driving record, it’s likely due to factors beyond anyone’s control. For example, inflation impacts the price of repairs and the cost of settling insurance claims. This has a direct impact on what you pay for insurance coverage.

4. My premium won’t increase if I don't make a claim

MYTH.

Even with a perfect driving record and a claims-free history you may notice the cost of your car insurance increasing. Your driving history is only one of many factors influencing your premiums. If you move to a new neighbourhood, switch jobs, or even change marital status, you may see your rates increase.

5. Parking tickets affect the cost of insurance

MYTH.

Parking tickets are not considered moving violations and are not reported to insurance companies. That being said, if you have unpaid parking fines you may not be allowed to renew your driver’s license or plates until they are paid.

6. Speeding tickets won’t increase my premiums

MYTH.

When an insurance company sees that you have a speeding ticket on your driving record, they may consider you a higher risk driver and increase your premium. The only instance where a speeding ticket will not affect your insurance is when you get caught speeding by an automated speed enforcement camera. You’ll still get a fine, but since the ticket is issued to the registered owner of the vehicle based on the licence plate, you won’t receive demerit points.

7. My insurance premiums should be similar to my neighbours

MYTH.

You and your neighbour may lead similar lifestyles, drive identical vehicles and both have clean driving records, but your premiums could still be different. For example, if you carry a lower deductible, or have more coverage, you will likely pay more for insurance.

8. If my friend borrows my car and has an accident, their insurance will cover it

MYTH.

Your insurance policy covers your vehicle and whoever is driving it. If you lend your car to a friend and they get in an accident, it will be your insurance policy that covers the damage. If you regularly lend your car to a friend or family member you should add them to your insurance policy as a driver to ensure you won’t be denied coverage if they were to ever get in an accident in your vehicle.

9. Incorrect information won’t affect my policy

MYTH.

Your insurance policy is designed to protect you and your assets based on your unique risk factors and driving habits, so – if you’ve moved, changed jobs, or have a new driver in the family – we need to hear about it. Why? Keeping us in the loop about changes that affect your policy is critical because, in some cases, providing inaccurate information or forgetting to disclose new details can lead to costly gaps in coverage – and could mean you may not be properly protected in the event of an accident. Try to review your full insurance policy at least once a year to ensure it reflects your current circumstances.

By understanding these myths, you can make informed decisions when choosing car insurance and ensure that you have the coverage you need in case of an accident or other unexpected events.