Debunking Common Car Insurance Myths.
Car insurance is a mandatory aspect of car ownership that protects you and your vehicle from unforeseen circumstances. However, there are several myths surrounding car insurance that can lead to misunderstandings and confusion. This blog will debunk some of the most common car insurance myths to help you make informed decisions.
Myth #1: Your insurance covers everything.
A common misconception is that your insurance covers everything. While car insurance covers damages to your vehicle and other cars in an accident, it may not cover all the expenses. For instance, you will be responsible for the additional costs if you get into an accident and the damages exceed your policy limit. Plus, most policies include a deductible, the portion of repairs costs you pay. Be sure to understand your policy coverages, deductibles and limits.
Myth #2: Insurance companies keep changing the rules on what is and isn’t covered.
Car insurance providers in Canada are highly regulated by provincial and territorial governments, which set minimum coverage levels. Insurance companies can only change basic coverage or premiums with government approval. Motor vehicle owners in Nova Scotia must obtain coverage through a private insurer that meets minimum provincial requirements, including $500,000 in mandatory third-party liability coverage.
Myth #3: Your insurance premiums increase automatically after an accident.
While it is true that your premiums may increase after an accident, it is not an automatic process. If you were at fault in the accident, your premiums may increase. However, your premiums may remain the same if you were not at fault. Insurance companies review each case individually and consider several factors before raising your premium. This blog sheds light on Why Does Car Insurance Go Up After an Accident?
Myth #4: Comprehensive insurance covers everything.
Comprehensive insurance covers damages to your car that are not caused by a collision, such as theft, vandalism, or natural disasters. However, it does not cover everything. Comprehensive insurance has a deductible, the amount you pay before your insurance coverage kicks in. Additionally, comprehensive insurance may not cover damages caused by intentional acts or neglect.
Myth #5: Your insurance covers rental cars.
If you are involved in an accident, your insurance may cover the cost of a rental car. However, this depends on your policy’s terms and conditions. Some policies may not include rental car coverage or restrict the type of rental car you can get.
Myth #6: Using your personal vehicle for work will increase your premium.
This is not the case, though you are responsible for telling your insurance provider if you plan to use your vehicle for ride-sharing or food delivery. Plus, if you don’t, you risk invalidating your insurance coverage if you’re using a personal vehicle for commercial purposes. For more information, please read our blog: Car Insurance for Halifax Uber Drivers Explained.
Generally speaking, the more often and longer you’re on the road, the more likely the chances of a collision occurring. The average yearly mileage for Canadians is approximately 15,000 kilometres, so anything over that might increase your premium slightly.
Myth #7: The colour of your car affects your insurance premium.
The colour of your car, even if it’s red, has no impact on your insurance premium. Insurance companies consider several factors when calculating your premium, such as your driving record, age, location, and the type of car you drive. When determining your premium, insurance companies consider the make and model of the car, how much it costs to repair, and the theft rate. So, if a specific car model is more likely to be stolen, your premium might be higher.
Myth #8: You can’t switch insurance providers until your policy comes up for renewal.
If you’re unsatisfied with your current insurance provider, you can switch to a new one at any point in the duration of your policy. Keep in mind that you may have to pay a cancellation fee, which could be a flat monthly rate or a percentage of what’s left on your current policy. Whatever you decide to do, compare policy coverages, deductibles, limits and rates before you make the switch.
In conclusion, it is essential to understand the facts about car insurance and avoid falling for common myths and misconceptions. When shopping for Car Insurance in Nova Scotia and New Brunswick, take the time to research and compare policies to find one that suits your needs and budget. Remember to review your policy regularly and consider additional coverage options that may provide you with added protection. Our Bauld Insurance Advisors can review your car insurance policy to ensure you are well protected. Visit our web page for more information and frequently asked questions on Car and Auto Insurance or to request a Car Insurance Quote.