Do you know what factors impact your auto insurance rates? Have you heard that red cars cost more to insure than others? This is just one of the many myths surrounding auto insurance. Here are a few examples of auto insurance myths.
Myth: If a police officer says I caused a traffic accident, my auto insurance rates will go up.
Reality: Not necessarily. Police officers can lay charges in traffic accidents but it is up to the insurance adjuster or claims representative to determine fault in an accident. In some provinces this is done based on legal precedent, in others, it is based on the government’s guidelines, known as fault determination rules. If the adjuster determines that you are wholly or partially at fault, your insurer may decide to adjust your premiums.
Myth: The number of car doors is the single most important factor in determining your insurance rates
Reality: No, a single feature of the vehicle won’t determine the rates you pay. Your claim history, the vehicle’s value, the likelihood it will be stolen and the repair costs are all considered by insurance companies when they calculate your rates.
Myth: Your insurance company will automatically increase your rates if you report a claim
Reality: As part of our Claims Guarantee, we’ll provide you with information to help you decide whether or not to make a claim. If you decide to pay your own claim, your premiums will not increase; however, claims with potential injuries, environmental losses, water damage or losses with legal involvement need to be reported and investigated. Depending on fault, rates may be impacted.
Myth: If you have too many parking tickets, your insurance rates will skyrocket
Reality: You can breathe easy, because parking tickets have no impact on insurance rates. They can be expensive, but your insurance company isn’t worried about them.
Myth: Auto insurance will not cover a stolen vehicle if a door was left unlocked or the keys left inside.