Do red cars really cost more to insure?
The Myth: If you don’t make a claim your insurance rates can’t go up after an accident
The Myth: Extra charges for speeding tickets are removed from your insurance on the anniversary of the incident
The Myth: Red Cars cost more to insure
The Myth: If an accident is not my fault, I won’t have to pay my deductible
The Myth: Parking tickets will cause my insurance premiums to increase
The Myth: If you are using your car for work purposes, your employer’s insurance will cover you
The Myth: My car insurance rates should be the same as my neighbour's.
The Myth: Two doors are more expensive than four doors
The Myth: If someone else is driving your car and gets in an accident, their insurance pays for the damage
The Myth: New drivers should just accept they will have to pay higher rates
The Myth: Listing a parent as the primary driver will save a young driver on insurance for their car
The Truth: Even if you decide not to report an accident, your insurance company may still find out and increase your rates. For instance, if the other driver makes a claim, their provider may tell yours and your rates will go up.
The Truth: Your insurance company will remove any extra charges for a speeding ticket when that ticket is removed from your driving record. However, they do not do it on the actual anniversary of the infraction. You will not see a reduction in your insurance rates until your next renewal following the removal of the ticket from your record.
The Truth: The colour of your car makes no difference for your car insurance. Red, blue, green, silver, it just doesn’t matter – you will get the same rate for a given car regardless of what colour you opt for. Things like the year, make, model, type, engine and age of the car however, will affect your rates.
The Truth: Even if you are in an accident where the police determine you are not responsible, your insurance provider may see things differently. Your insurance company has the final say on whether or not you have to pay your deductible. They may choose to waive your deductible in the case of an accident they determine was not your fault. But until they tell you your deductible has been waived, you should be prepared to pay it.
The Truth: Parking tickets cost you money, but they do not count against your driving record and are not used to determine your insurance rate. However, unpaid parking tickets may impact your ability to renew your driver’s license and losing your license can affect your rates.
The Truth: Most policies cover you only for the personal use of your vehicle, not commercial use. If you are using your personal vehicle for work purposes you aren’t covered by your employer either. While your employer may reimburse you for things like gas, you would be on the hook for any costs resulting from an accident while using your car for work purposes.
The Truth: Just because you live close to each other, you may not pay similar insurance rates. Every individual is assessed on a wide variety of factors of which location is only one. Things like driving record, claim history, the driver’s age and the type of vehicle also play a role.
The Truth: Much like the colour of paint, the number of doors on your vehicle is not an explicit factor in determining what your car insurance will cost. In fact, sometimes that sporty two-door coupe model you’ve been eyeing will be less expensive to insure than its four-door sedan counterpart. Things like a particular vehicle’s safety rating and the number of theft, collision and other claims are what will make a difference on your insurance rates.
The Truth: Your car insurance applies to that specific vehicle. If someone borrows your car, your insurance goes with it so your rates would be affected in the case of an accident. Think twice about who you want to lend your vehicle to.
The Truth: There are several things a new driver can do to lower his or her rates. Things like taking a certified driver education course can help lower the cost. Some insurance providers also offer a good student discount based on academic standing if a new driver is in school. New drivers should shop around, just like everyone else, to find the best rate for them.
The Truth: This process, known as fronting, is illegal. By law, the primary listed driver (or principal operator) is the one who drives that vehicle the most. Listing someone else as the principal operator of your vehicle if you drive it most in order to lower your premiums is considered fraud and can carry stiff penalties.