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Car Insurance

Separating insurance fact from fiction

As much as drivers like to talk about how they save on gas, they also enjoy swapping insurance stories. Unfortunately, too much talk — specifically, the inaccurate kind — can generate urban legends.

Let’s admit that we’ve all shared that one story about our friend’s neighbour’s cousin-by-marriage who saved a bundle on insurance, even though we’re not sure if it’s true. Now, let’s turn to the facts:

The colour of your car affects your insurance rate.

Most people may not know it, but the insurance industry is colour-blind. It doesn't matter if your car is blue, red, striped or chequered, your insurance rate for that make and model of car will always remain the same.

A 2-door car is more expensive to insure than a 4-door.

Not true. In fact a 4-door can, in some cases, be more expensive. This is because insurance companies look at the price of the car, repair costs, theft frequency and its previous claims history when determining your rate.

Getting a parking ticket means your insurance rates will go up.

If that was the case, we'd all be singing the blues. Parking tickets do not count against your driving record or your insurance, but unpaid fines will affect your ability to renew your driver's licence.

Getting a speeding ticket means your insurance rates will go up.

Yes that is true. All minor speeding tickets (up to 50 km/h over the speed limit) will affect your insurance rates. A major speeding ticket (more than 50 km/h over the speed limit) may result in your insurance being cancelled at your renewal.

You don't have to pay your deductible if the police said the accident was not your fault.

The police may not have deemed you criminally responsible for the accident, but it's your insurance company who has the final decision as to whether you pay your deductible or not. If they investigate the accident and rule that it's not your fault, they have the right to waive your deductible. Until then, you better be prepared to pay...

If you are in an accident and don't make a claim, your insurance premiums won't increase.

Not true. If your insurance company finds out you were in an accident, they can raise your rates accordingly - whether you made a claim or not. You may not have told your insurance provider about the accident, but the other person in the collision may be filing a claim. His/her insurance company may tell your insurance company about the accident and they can raise both your rates.