Shop Insurance Canada Dispels Prevailing Car Insurance Myths

July 31, 2015 - Auto insurance can be a minefield to understand and there are certainly many misconceptions among consumers. Shop Insurance Canada recently released an article dispelling these various myths. Here are few highlights.

Standard Rates - One of the worst myths in the industry is that rates are the same across insurance companies. It's surprising how many people just opt for the first company they make a call to; usually a leading name in the industry and the consumer typically assumes the rate is standard.

In fact, rates can vary between companies, often by thousands of dollars, because different companies have varying rating criteria and risk pools. It pays to shop around for your rate: use an online car insurance quote comparison tool to find your cheapest rate in just minutes!

Theft Coverage - Another big myth is that insurance will cover you if your car is stolen-in some circumstances, yes, but there are caveats. It really depends on the type of coverage you have as not all plans protect against theft. Comprehensive coverage does cover for theft, but you need to make sure you know the ins and outs of your policy to see if your car is covered for theft, collision, fire, or other damage. Collision damage also covers you if you cause an accident, but without it you will need to foot the bill for any wreck you're in.

Red Car Insurance - Furthermore, there's a recurring myth that red cars are more expensive to insure-if your new red car happens to be a Ferrari maybe, but in all other circumstances, this is also false. It may surprise you to know that many insurance companies will not even request the colour of your car, and if they do it is probably just because they are dotting all I's and crossing all T's. The deciding factors are how old the car is, what make it is, if it is a popular choice amongst thieves, and the cost to repair in case of damage.

Is my new car a thief magnet? Actually no, in fact, the opposite is more accurate; older vehicles are more likely to be targeted by thieves. The Insurance Bureau in Canada (IBC) releases annual theft statistics and in 2014 found that aging cars are more frequent targets, with no model newer than 2007 in the top 10.

Cheaper Insurance for Female - It is also often thought that females usually get cheap car insurance, but this also has its caveats. There are two sides to this story, as males under the age of 25 do statistically pay more insurance than females within the same demographic. However, past 25 years the gender difference becomes much less noticeable.

Head over to Shop Insurance Canada to take a look at the full article and our other informative resources on all types of insurance!