There are plenty of rumours about what affects your car insurance and what doesn’t. Every driver has a story that happened to a friend of a friend, but how many of these insurance stories are facts? We’re here to give you some insight on the most common insurance myths. This way, you’re well versed on what really affects your insurance and what doesn’t.

The colour of my car will affect my insurance.
FALSE: The colour of your car does not affect your insurance in any way. This is one of the most commonly believed insurance myths. Red cars do not mean higher insurance rates, this is just a widely believed urban legend.

The model of my car will affect my insurance rate.
TRUE: The model of your car is a factor in your insurance rates. Rates are based on factors such as theft probability, costs of repair, safety, etc. These can all vary depending on the model of your car which will affect your insurance positively or negatively. Tip: If you’re car is on the most likely to be stolen list, your insurance will be higher than average.

A four-door car is less expensive to insurance than a two-door car.
FALSE: This is a myth that derives from the belief that sports cars with two doors mean higher insurance rates. This isn’t always the case. In fact, the opposite can be true.

My address will affect my insurance rate.
TRUE: Where you live in Canada will affect your insurance premium. For example: Rural home addresses have lower insurance rates because the less busy roads mean fewer accidents. If you happen to live in an area with high crime rates and stolen vehicles, this will increase your premiums because your address is in an area of high risk.

My young age will mean I pay higher insurance premiums.
TRUE: Age is a factor to accommodate age groups and the risks that are associated with them. This is unfortunately true for drivers under 25 years old and is not a myth. They will also consider your driving history, your convictions and charges, car type, commute, and address.

My multiple parking tickets will make my insurance premium more costly.
FALSE: Luckily for some, parking tickets are not considered a part of your driving record. This means, your driving record is not affected and neither is your insurance. Should you fail to pay your parking ticket fines, this could cause issues down the line when it’s time to have your driver’s license renewed. 

I got into a car accident while traveling in the U.S and now I have to pay out of pocket.
FALSE: In both Canada and the United States, your car insurance is valid as long as you are in possession of your electronic pink slip. This varies for coverages but majority will cover you in this scenario.

I will negatively affect my insurance premium forever by getting into an accident or getting a ticket.
FALSE: Every three years, your misdemeanor will be expunged from your record, which luckily for you, means your rates will drop as well.

It’s easy to believe everything you hear but this article proves that some myths are just plain fiction! Hopefully this has taught you something new about insurance and debunked the myths you believed.

Whenever you have a question about your insurance, the first person you should to go to verify what you hear is someone who is in the business and knows the ins and outs of the industry. It’s best to ask a licensed professional like the brokers at Oracle RMS today.