There are a ton of auto insurance myths and misnomers floating around, so join ARC Insurance Brokers as we work to debunk some of the most common myths and provide you with some clarity on the auto insurance world.
Myth 1: Red cars are more expensive to insure.
This is probably one of the longest-standing myths. The truth is the colour of your vehicle does not play into your policy rate. The make, model, and year of your vehicle will – but not the colour. So go crazy and get that bright yellow car you’ve been dreaming of!
Myth 2: You don’t have to notify your broker or insurance company when you move.
This myth can be costly! Insurance rates can differ depending on your city, which is why it’s important you let your broker or insurer know if you move. While you might be risking an increase in your rates with your move, if you need to make a claim and you still haven’t updated your address it could mean your claim is denied.
Myth 3: If you lend your car, it will be covered under the lender’s auto insurance policy.
Don’t think you’re off the hook just because you’re not the one driving your vehicle. By lending out your vehicle, you’re basically lending out your insurance policy as well. If the person you loaned your vehicle to was to get in an accident, it would be your insurance policy, not theirs, that would be expected to cover the damages.
Myth 4: Cheaper cars mean cheaper insurance rates.
Insurance rates are not based off the price of a vehicle – they are based on the insurance history of the vehicle. Accident, safety and theft history are all factors that will play into the final price.
Myth 5: Convertibles are more expensive to insure.
Similar to the myth above, insurance rates are determined based on the insurance history of a vehicle, not it’s roof type.
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