Fact or Fiction: Top Five Car Insurance Myths Debunked

Car insurance is not always a “fun” topic of conversation, it’s more of a must have, but it is important to check in on. Take today, National Car Insurance Day, as the timely reminder to pull out your pink slips and cross check your coverage is up to date for the right set of wheels and the right drivers. Psst, having the Gifford Carr app can help with that, your digital copy of your most recent pink slips on hand when you need it. Proper coverage will fuel you up for your next car trip, safely. Buckle up, to help get you ready to hit the road, we’re debunking five myths in the car insurance edition of Fact of Fiction.

1. Automatic Annual Decrease

FICTION
You’re a good driver, no tickets or infractions this past year, so your insurance premiums should reduce year over year, right? Wrong. Though time periods do waive past offences over time. Good driving year to year does not automatically influence premiums. Insurance is most impacted by the market. Similar to real estate and stock, an insurance market can change. It is cyclical. We are currently in a Hard Market. Which means we are in a period with high demand for insurance, but a lower supply of coverage. Talk to your broker to understand how the current market impacts your premiums.

2. Responsible Driving Has Benefits

FACT
Did you know more and more insurers are developing technology and apps to track your good driving benefits and deliver pricing benefits for it? However these discount programs are not automatic. Your broker can help you determine if this is an option for you, or if there is something that better suits your needs.

3. Seeing Red

FICTION
Still believe picking the red colour swatch is going to up your insurance premiums? False, the colour of your car is not a factor in rating a driver for insurance, infact our brokers don’t even ask what colour your vehicle is. Though it may be more easily noticed when driving down the road, it is not a consideration for insurance. So go ahead, get that sassy red car, just don’t drive like you’re on the F1 track.

4. Sportier is more expensive

FACT
Ok, this one is true, but not for the reasons you may think. Just because the car is a flashy sporty edition or a snazzy convertible does not mean you automatically have higher premiums. When parts are more expensive or more difficult to find, insurance rates go up, and with technology today, including safety sensors, any little bit of damage typically means a much larger repair bill. So it’s not so much a factor of the horsepower, but of the costs and risks in replacement and repairs should something hit a speed bump (pun intended).

5. Personal car insurance covers me when I’m driving for business

FICTION
If you opt to use your car for business it is possible you may need additional coverage for you and your vehicle’s new use. Specifically when considering ridesharing services, more comprehensive, and/or, commercial insurance coverage should be added. If you plan to use your car for more than commuting and getting around town, you may not be covered under your current personal car insurance plan. Find more information in our recent blog or connect with a broker to discuss your coverage before picking up a “lyft”.

Our top tip from Gifford Carr brokers, review life changes with your broker. Working from home these days? Likely means you are spending less time commuting. Making the move to a rural property for more space? Changing locations from a bustling city centre may change your insurance risk. Is your kid turning 16 and cannot wait to cruise around town? Moving in with your partner and combining additional cars or property? These life changes can have significant impacts on your lifestyle and your insurance, including the rates available to you. Take a moment to talk to your broker and understand how changes to driving patterns, household and lifestyle, can affect your insurance premiums. 

Getting the right coverage for your needs starts with trust. Trust you have the coverage and protection you need should a day come that you need to access it. Working with the right insurance broker ensures you have an advocate on your side keeping you protected. At Gifford Carr Insurance Group, we are on your team. We are here to be your insurance advocates, and protect your best interests. Find a broker you can turn to with your news so they can advocate on your behalf and ensure you have the best protection for your lifestyle – and the coverage and protection you need – for when you need it.

Get a car insurance quote today!