There are several myths or preconceived notions about auto insurance that are going around.
Take our quiz and test your knowledge!
True or false?
Insurance premiums for red cars are higher.
False. Contrary to popular belief, car colour has no impact on premiums. The main criteria used to calculate insurance premiums are:
· Average distance driven per day or per year, specifically to and from work
· Place of residence (city/neighbourhood)
· Driver profile (age, gender, etc.)
· Driving experience (traffic violations, accidents)
· Year, make and model of the vehicle
· Coverage and deductible
· Group discount (if applicable)
I use my car for work, so I'm covered by my employer's insurance.
False. If you use your car for work, your employer's insurance will not cover you in case of an accident. Therefore, inform your insurer of this situation to make sure you are adequately covered.
Parking tickets have no impact on insurance premiums.
True. Although they may empty your pockets, your insurer does not consider parking tickets when calculating your insurance premium. However, a poor driving record may eventually impact your auto insurance (e.g., speeding).
If a friend gets into an accident with my car, it won’t appear in my file.
False. In this situation, you're not just lending your car, you're also lending your auto insurance. Therefore, always remember that you could be held responsible if the person to whom you lend your car has an accident with it.
In case of accident, the police determine who is at fault.
False. Your insurer determines which parties are at fault, whether fully or partially, so there’s no need to call the police when no one has been injured. Simply, fill out a joint report in order to provide all the necessary information to your insurer.
If the contents of my car are stolen, the claim will be covered by my home insurance.
True. Your auto insurance contract only covers that which is permanently affixed to your vehicle (stereo, hubcaps, accessories, etc.), whereas theft of whatever is inside it (laptop, golf bag, etc.) is covered by your home insurance.
Hopefully, you learned a little bit more about auto insurance. When in doubt, ask your insurer!
For more information, consult the auto insurance section of the SSQ website.