Auto Insurance: Fiction or Fact

 In Auto Insurance, Blog, FAQs

In the age of the internet, misinformation often gets passed around and becomes “fact” — and this is certainly true when it comes to car insurance. Changes and updates in rules and regulations, rumours from friends and family, and information from different provinces or countries can all contribute to car insurance myths.

At Jeffery & Spence Insurance, it’s important to us that we keep our clients informed about the facts. Here are the most common fictions and facts about car insurance:

Your vehicle’s colour can affect your car insurance premiums

THIS IS FICTION!

You’ve likely heard that red cars will have higher insurance premiums than cars of other colours. The rationale behind this is that reckless drivers, young drivers, or drivers who like to speed are more likely to own a red car. The truth is that colour is about the only aspect of your car that doesn’t go into determining your insurance rates. Insurance companies are interested in the model, make and age of the car, as well as safety features, mileage driven, location, etc.

Your car insurance covers vandalism, theft, fire, and hail damage

THIS IS FICTION!

When people purchase car insurance, the assumption is that they’re covered under all circumstances. However, if you don’t have comprehensive insurance, you and your vehicle won’t necessarily be protected in situations like theft, vandalism, and weather damage. Make sure you get comprehensive coverage, as well as collision coverage, which will protect you if you hit another vehicle or an object.

New cars are more likely to be stolen

THIS IS FICTION!

It’s understandable why anyone would think that a new car would be more likely to be stolen: they are typically worth more money than older vehicles which makes them more attractive to car thieves. However, the opposite is true, and older cars are stolen more often than newer cars. Newer cars are better equipped with security features and anti-theft devices, which makes them harder to steal.

Where you live impacts your insurance premium

THIS IS A FACT!

How much you pay for car insurance will vary depending on whether you live in an urban, suburban, or rural area. Urban areas have more cars on the road and more opportunities for accidents, so the insurance costs are higher. If you live in an area with a high theft rate, this could also drive up your insurance premiums.

Drivers under 25 pay more for car insurance

THIS IS A FACT!

Young drivers typically pay more for car insurance than older drivers, but this isn’t the only factor that determines how much you pay. Insurance companies will also consider:

  • Your driving history and how long you have been a driver
  • If your vehicle is used for personal or business purposes
  • How many passengers you regularly have in your car
  • Your location

In addition to these factors, if you have any speeding tickets, your insurance is likely to go up.

Whether you’re looking for liability coverage, accident benefits, uninsured/underinsured driver protection, collision protection, or a comprehensive coverage plan, Jeffery & Spence Insurance can help you find the right car insurance for you and your family.

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