Choose the colour of your car wisely. Because if you pick the red one, you’ll pay more for your policy.
If you’ve heard this before, you’re not alone. And no, it’s not true. It would be difficult for insurance companies to justify why a red car would be costlier to insure than, let’s say a blue one.
The fact is car colour influencing your insurance rates is one of the oldest tales in insurance folklore (insurance providers use characteristics like make, model, accident history and safety features to determine your premium).
What is true, is myths like car colour have a funny way of influencing how many drivers make decisions about their insurance, often leading them astray and potentially costing them extra money.
With that said, some further car insurance myth-debunking will help you search for the right policy and most competitive rates to meet your needs.
Car insurance myth: Your insurance provider covers vandalism, theft, and damage due to weather or fire.
Fact: Review your current policy. This is only true if you’ve purchased comprehensive coverage. Comprehensive car insurance provides you with an extra level of coverage to help pay for incidents besides collisions like vandalism, certain weather events and accidents with animals.
And what about the chance of collision?
Collision insurance is another type of optional coverage. Just as the name suggests, this coverage takes care of damages that are the result of a collision whether it be another vehicle or object. Just like comprehensive coverage, collision insurance has to be added to your policy.
Car insurance myth: Car insurance covers personal belongings in your vehicle.
Fact: Car insurance covers you, your passengers and, depending on your policy, the car itself. If your phone, laptop, jewellery, golf clubs, fishing gear or other valuables are stolen from your vehicle or are damaged in a collision, this is typically covered under homeowner or renter’s insurance.
Car insurance myth: Thieves prefer to steal new cars.
Fact: According to the Insurance Bureau of Canada, in 2017 the top ten most commonly stolen vehicles in Canada were manufactured between 2001 and 2015. Older model vehicles are often targeted by car-jackers due to their parts and limited anti-theft features.
What do these stats mean for you?
This shows that having an older vehicle shouldn’t mean skimping out on auto insurance. It pays to have comprehensive coverage to protect against theft no matter how old or new your vehicle is.
Car insurance myth: Shopping around for car insurance rates is time-consuming.
Truth: Shopping around for car insurance is one of the best ways to save on your policy premium. Online tools like SooToday’s Insurance Hotline make it simple to find the most competitive rates by comparing over 30 quotes in a single online search.