So, you’ve decided to buy a new car. You’ve compared the cars you like, looked at prices, reviewed safety features, and you’re set to go on a few test drives. You’ve even received some tips and advice about how to secure the best deal while making sure you’ve got a vehicle that suits your needs. That’s a great start, but there’s still the issue of insuring it, which many consumers don’t properly consider in terms of how this will play into their purchase.
Insuring a new vehicle is an important part of the vehicle purchasing process, yet it’s still shrouded in mystery. While insurance should be factored into your final choice, consumers are sometimes swayed by faulty information or prevalent myths.
To help you make an informed decision, we’ll help separate fact from fiction when it comes to three popular auto insurance myths.
1. Myth: The colour of your vehicle affects your premium; red cars cost more to insure.
Fact: This is false. Your car’s colour has no bearing on the cost of your insurance premium. Your insurance rate depends on a variety of other factors including:
- The kind of vehicle. Is the vehicle you’re considering an SUV? A sports car? A sedan? The make, model and year of your vehicle are some of the factors that determine your premium. Some cars provide more safety protection from collisions because of the way they’re built, and some cars are more likely to be targeted by thieves, which impacts how much it will cost to insure.
- How often or far you’ll drive it. The amount of time a driver spends on the road plays a part in determining how likely they are to get into a collision. For example, the chance of getting into a collision is greater if you drive 50 km per day as opposed to travelling 10 km per day.
- Your driving record. This is where drivers have a direct impact in terms of what they pay in insurance. The better your driving record, the lower your rates! Speeding tickets, impaired driving charges, and collisions will most likely result in higher premiums.
- Where you live. If you live in a densely populated area or an area where car thefts are more common, this will likely impact your insurance premiums. If you park your car in a garage or monitored storage area as opposed to out on the street, this is also a factor.
2. Myth: A newer or luxury vehicle is more expensive to insure than an older model.
Fact: A newer or luxury vehicle is not necessarily more expensive to insure than an older or moderately priced one. People often draw a correlation between the cost of a vehicle and the cost to insure it. In some cases this may be true, but many newer or high-end vehicles are equipped with advanced safety technology that can assist drivers. Some vehicles can monitor blind spots, assist in keeping the car in its lane, or stop before the driver is even aware of an obstruction to help prevent collisions. Available safety features are factors insurers will often take into account.
A less expensive vehicle that’s not equipped with these safety features may be cheaper to repair, but will not provide the same level of protection to passengers and therefore will pose a higher risk of injury.
If you’re interested in comparing insurance rates on your own, there are resources online that show drivers how different cars measure up, and some insurers offer tools that can provide you with a quick quote for your potential vehicle.
3. Myth: Insurance is a “get it and forget it” purchase.
Fact: If a driver is lucky enough to have never been in a collision, he or she may not consider their insurance again until it’s time to purchase another vehicle a few years down the road. However, a driver’s insurance needs often change over time and it’s always a good idea to make sure your coverage fits your circumstances and needs. In addition to reviewing the policy annually, drivers should review their policy when significant life changes arise. Here are a few examples of life events that should get drivers thinking about their policy:
- Your teen is ready to drive. Adding a new driver to your policy will impact your premium, so talk to an insurance professional to see how this will affect your policy. There are special discounts available for some new drivers, and your agent can guide you through the process.
- You got a new job. Will you be taking the bus to work instead of driving every day, or will you be driving a longer distance? Your new commute could change your premium.
- It’s time to retire. For many, retirement means doing less driving.
- You’re adding a car. If you’re adding a separate vehicle to the policy, bundling your insurance can help you save on your rates.
- You’ve started renting or you’ve purchased a new home. If you have tenant or property insurance, bundling your insurance policies can help you save on your rates.
When choosing the car you want, arm yourself with the facts and speak to an insurance professional before you make the final decision. Then, go ahead and buy the best vehicle for you — even if it’s bright cherry red!
Falling prey to myths can be costly. Knowing the facts can save you time, money, and ensure you’re properly protected.
Have you heard any other myths about insuring cars? Let us know in the comments!