Seven car insurance Myths

Seven Insurance Myths

When talking to friends and family members, I am stillamazed at the misconceptions people have with regards to their car insurance.

It’s time to debunk some of these myths! Below is a list of the most common insurance myths I get asked about and the truths about them.

Myth # 1. I have my car and my motorcycle with 2 different insurance companies. Any accidents or tickets connected to my car won’t count against insurance on my motorcycle.

Wrong. Any bad mistakes you make on four wheels may factor into the insurance you have on two wheels. Whether or not the vehicles are covered by the same insurer, an accident or ticket in a private passenger automobile may still count as an accident or ticket against your motorcycle insurance. The accident may be rated on both your policies, even when using separate insurers. It can sometimes be of benefit to have a single insurer, who may opt to rate the accident on only one policy.

Myth # 2. My insurance rates will go up if I get a speeding ticket.

Not necessarily. Technically speaking, insurers have the right to surcharge you for any Highway Traffic Act or Criminal Code convictions related to the use or operation of a vehicle. But your first minor speeding ticket (up to 49 km/h over the speed limit) will probably not affect your insurance rate. Don’t take this as an excuse to abuse that throttle — accumulate convictions and you’ll very likely pay more to be insured. Get a major speeding ticket (more than 50 km/h over the limit), and you’re absolutely cruising for a rate hike.

Myth # 3. If I’m in an accident and the police say it was not my fault, I don’t have to pay the deductible on a claim.

The police may have the final say on whether or not you’re criminally responsible for an accident, but your insurance company makes the final call as to whether you pay your deductible or not. In most provinces, insurers go by regulations set out in the provincial insurance laws for that province. If an insurer investigates the accident and rules that it’s not your fault, the company may indeed waive your deductible. Keep in mind, the one accident where almost every time the driver’s are50/50 at fault ~ the parking lot accident’s! Be careful here.

Myth # 4. All those unpaid parking tickets I’ve accumulated will make my insurance rates go up.

Parking tickets do not count against your driving record or your insurance. However, all those unpaid fines will affect your ability to renew your driver’s licence and registration. So, be sure to feed the meter next time.

Myth # 5. If I choose not to make a claim after an accident, my premiums won’t increase.

Not so. If your insurance company finds out you were in an accident, it has the right to raise your rates accordingly, even if you opted not to make a claim. And if the other person in the collision files a claim, his or her insurance company may notify your insurance company – and they can raise both your rates.

Myth # 6. If I lend my vehicle to my friend and my friend causes an accident, his/her insurance will cover it.

Sorry, but there’s no way to pass this buck. You and your insurance record are both on the hook when you lend out your wheels. Your insurance company pays for your damaged car, the claim is on your policy, and your rate may increase, just as if you had been driving the vehicle yourself.

Myth # 7. A small claim won’t affect my rate as much as an expensive one will.

It seems logical, but remember that insurance rates are determined based on exposure to risk as well as value. Even if your insurance company doesn’t pay out a dime, an accident is an accident and will affect your history and your rate. A lot can vary, depending on the insurer, the circumstances and your previous driving record.

Share the knowledge and remember your best advice is your broker’s advice!

Ava