Myths regarding auto insurance: test your knowledge

Myths regarding auto insurance: test your knowledge

True or false?

Insurance preminums for red cars are higher.

False. Contrary to popular belief, car colour has no impact on the premium amount. The main criteria used to determine insurance premiums are:

  • mileage driven every day, for example driving to and from work
  • where you live
  • driver’s profile (age, gender, etc.)
  • driving experience (traffic violations, accidents)
  • the year, make and model of your vehicle
  • chosen coverage and deductible
  • group discount (if applicable)

I use my car for work; I’m therefore covered under my employer’s insurance policy.

False. Unfortunately, if you use your vehicle for work, your employer’s insurance does not cover you in the event of an accident. It is therefore imperative to notify your insurer to make sure that you are adequately protected.

Parking ticket have no impact on my auto insurance premium.

True. Although parking tickets can be expensive, your insurer does not take them into consideration. However, a bad driving record can raise your auto insurance premium (major speeding violation for example).

In the event of an accident, it’s the police that determines who is responsible.

False. Your insurer will determine the responsibility for each party involved. It is not necessary to call the police to the scene if there is no one hurt. Nevertheless, it is recommended to complete a joint report of automobile accident in order to provide all the necessary information to your insurer.

If the contents of my car gets stolen, I will be compensated by my home insurance.

True. Your auto insurance contract covers everything permanently fixed to your car (stereo system, rims, various accessories, etc.) while items stolen from your vehicle (your laptop or golf bag) are covered under your home insurance.

You now have a more accurate idea of what auto insurance is all about. If you are in doubt, don’t hesitate to contact your insurer, we’ll be happy to answer any of your questions!