There is a lot of information about insurance that is misleading and false that you should know about. While buying the first insurance package for your car, you might be misled by this information. Falling for these insurance myths could cost you money and also influence your decision making, so it’s important to point out the myths in question.
Here are five of the common insurance myths you should know about and avoid while buying insurance for your car.
1. Red cars cost more to insure
This is not true because what insurers use to calculate your premiums include the make of the vehicle, age, driving habits and other factors that are not related to color. The average repair cost and popularity with thieves will largely affect the pricing of the premiums, and you will discover that no insurer will ask about the color of your vehicle while calculating premiums. One example of these types of services is this car insurance calculator tool for Ontario, Canada. Ontario has the highest car insurance rates in the province and these comparison tools help to ease the pain for Ontarians.
2. High rates translate to more coverage
Paying more is a result of a number of factors mentioned earlier. This does not mean you are given more coverage than another person. Different insurance companies will charge varying rates for the same car and same driver because each company uses a different claims experience while calculating the premiums that should be charged on you. As a result, you should consider choosing a company that gives you the best rates
3. My friend enjoys protection while driving my car
The insurance of your car is tied to the car and not the person driving it. Although your friends may have insured their car, if an accident happens and they are injured while driving your car there is no way they can be compensated by their insurer. That’s why you need to be cautious while allowing any of your friends to drive your car as this could lead to damage and you will be the one to cover all costs.
4. Coupes cost more than sedans
The sportiness of your car does not affect how much you pay for insurance. It is the value of the car and other factors that are considered when calculating cost of insurance. Likelihood of the import car getting stolen, repair costs, and its in-built safety mechanisms are the things that will be considered to decide what you should pay for insurance.
5. Men are charged more for car insurance
This consideration is only upheld if you are aged below 25 years, but above that age group equal measures are applied regardless of one’s gender. Only men aged below 25 years are considered a high risk category of drivers, so some insurers may charge more in that case.
If you are considering buying insurance for your car, you probably need to understand a few myths that may mislead you to make the wrong decision. These are basically beliefs that don’t hold any truth that you should avoid while buying insurance for your car. Refer to the myths discussed here to avoid making the wrong decision while buying insurance for your car.
