Before shopping for car insurance, it is important to know the facts and what to look for to get the best rate. Unfortunately, there are a number of myths about car insurance which people may have heard and these can make it difficult to understand what is fact and what is fiction. Below, we will bust the top 5 questions/myths about car insurance to help make shopping for your policy easier.
If someone borrows my car and is involved in an accident, does it affect my insurance record?
If you have let someone use your vehicle and they get into an accident, your insurance company will need to pay for the loss and the claim will remain on your file. Drivers have insurance because accidents do happen in life, but it is important to understand that if someone is borrowing your vehicle, you are also lending them your insurance as well.
Does car insurance covers items stolen from my car?
An auto insurance policy is designed to protect you, your vehicle and your passengers when an accident occurs. It will not cover items or personal belongings that are stolen from your car. That being said, homeowners insurance, tenant insurance or condo insurance policies often will include coverage for personal belongings stolen from your vehicle.
Do men pay more for auto insurance than women do?
The cost of your auto insurance premium is determined by a number of factors which can include your driving record, age, where you reside, how far your commute to work is as well as the make, model and year of your vehicle. While every quote is individually tailored to the driver, it is true that men under the age of 25 generally pay more for auto insurance than women of the same age. This is simply because statistically, they are riskier drivers to insure but it does not mean that men always pay more for auto insurance.
Are brand new cars more expensive to insure because they are stolen more often?
The top 10 most frequently stolen cars in Canada last year were over 10 years old. If you recently purchased a new vehicle that is the same make and model as your previous car but it costs more to insure, this is likely due to the fact that a new car would cost more to repair or replace in the event of an accident.
Are red cars more expensive to insure than any other colour?
The colour of your vehicle has no impact on how much your auto insurance policy will cost. Your premium is determined based on a number of factors including the make, model, and age of your car, but the colour is not part of the calculation.
If you are ready to shop for car insurance, contact one of our knowledgeable professionals at Bow Valley Insurance for a quote. We will compare rates for you and find the best price for the coverage you need.