When faced with a nagging ailment, do you usually go to your next-door neighbors for a solution? Or do you get yourself to a family physician? Hopefully, you’d seek the expertise of your doctor. We’re not sure exactly why, but when it comes to getting auto-insurance help, it seems many Canadians are settling for anecdotal (and often inaccurate) advice from their friends, and family. This tendency has led to a number of widespread misconceptions. Perhaps these sound familiar: “Men always pay more for car insurance than women”, or “a red car will raise my premium”.
For the record, the rationale behind your rate is more likely to be determined by factors like the year and model of your vehicle, combined with your past driving record. Here are the top five falsehoods we encounter and would like to help demystify – in the name of saving you from a potentially serious, or costly insurance error:
MYTH #1
If My Accident is Unclaimed, My Premium Won’t Go Up
Whether you’ve reported the accident to your insurer or not, odds are that the other driver is going to be filing a claim. From there, it’s a question of when, not if, your provider finds out about the accident.
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An unreported collision will potentially raise your rates, regardless of whether you initiated the insurance claim or not. Don’t get caught off guard – be proactive with collision claims. Let us know about any questions or concerns you have – we’re here to help.
MYTH #2
Auto Insurance Covers Stolen Personal Property
Have a tendency to leave your GPS, phone charger, laptop, sports equipment, or work gear in the car as you dash for a quick coffee?
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It may be just a quick errand, but be aware that leaving such valuables in your vehicle is simply too enticing for thieves, and the inevitable theft of personal items will not be covered by basic auto insurance. This isn’t to say we don’t all experience a forgetful moment now and again. If you’re in the unfortunate circumstance of dealing with stolen goods, you may be covered for select items if you opted for comprehensive car insurance, or in some circumstances, home insurance. At a minimum, you’ll need to provide proof of ownership and the value of your belongings with photos, and receipts, so it’s much simpler to avoid the risk altogether.
MYTH #3
My Auto Insurance Company Doesn’t Need to Know When I Move
When you’re preparing to move into a new home, notifying your car insurance provider of your move may be the last thing on your mind, but we do need to know, and there’s a couple reasons why.
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Taking the time to inform us is well worth it, and there’s even a possibility that in doing so you could reduce your premium. Every postal code in Canada has associated risk rates for theft and driving accidents. If your move takes you further than a few blocks, or even between provinces we need to have the most up-to-date information on your file. If your policy isn’t up-to-date, you may not be covered when you have a claim.
MYTH #4
A Budget Car Means Lower Premiums
That used car or winter beater is great for getting you from A to B on a budget. But does a second hand ride automatically qualify you for better insurances rates? No.
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When considering a new or used car purchase, it’s best to check out the associated accident and theft history of the model before you buy. A little due diligence can turn into hundreds, even thousands, of dollars in savings annually. To help you make a more informed buying decision, we’d be happy to provide you with a no obligation quote.
MYTH #5
My Auto Accident/ Parking Tickets = High Premiums for Life
While we’re certainly not encouraging risky driving behavior, or racking up stacks of unpaid parking fines, we can confirm that past mistakes won’t stick with you forever.
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Unpaid parking tickets do not impact your premium. However, they can affect your credit rating. If you’re especially prone to procrastination, failure to pay
outstanding speeding or parking tickets over a span of time could lead to a suspension of your driver’s license – resulting in increased premiums down the road. Accidents, on average, stay on your record for 6 years.
Looking for a motor vehicle insurance estimate for your Motorcycle, Passenger, Recreational, Commercial, or Off Road Vehicle? Ask us today.