Auto insurance comes with a lot of opinions, assumptions, and stories people pass around as fact. Many of these ideas sound believable, but they often steer drivers in the wrong direction. Understanding what truly affects your premium and what has no impact at all helps you make better decisions and avoid unnecessary surprises.
Here are some of the most common myths, explained clearly so you know what matters.
Myth: Red Cars Cost More to Insure
This myth has been around forever, but it is completely false. Car colour plays no role in determining your premium. Insurers do not even ask for it. What matters is the vehicle’s make, model, year, safety features, claims history, theft rate, and repair costs. The colour is simply a personal choice.
Myth: Two Door Cars Are Always More Expensive
Two doors or four doors does not matter. Insurers focus on the type of vehicle and how often that specific model appears in claim statistics. A four door SUV can be more expensive to insure than a two door coupe if it has higher repair costs or a higher theft rate.
Myth: Your Rates Automatically Drop at Age 25
Age is a factor, but not the deciding one. What matters most is your experience and your driving record. A younger driver with a clean record may pay less than an older driver with multiple convictions. Likewise, someone newly licensed at age thirty may still pay higher premiums than a younger driver with more years behind the wheel.
Myth: Any Ticket Will Raise Your Rate Even Parking Tickets
Not all tickets affect insurance. Parking tickets do not impact your premium. Moving violations such as speeding, stunt driving, or careless driving can raise your rates. The type of violation matters far more than the number of parking fines you have collected.
Myth: Your Pet Is Covered If They Are Injured in a Collision
Many drivers assume their auto insurance covers their pet if they are hurt in an accident, but this is not true. Pets are not treated as passengers under standard auto insurance policies. If you want protection for vet bills after a collision or emergency care while traveling, you need separate pet insurance.
Your collision coverage protects the vehicle. Your accident benefits protect you. Pets require their own coverage.
Myth: Where You Live Does Not Affect Your Rate
Your address has a significant impact on what you pay. Insurers evaluate risk using local accident rates, crime statistics, theft frequency, road conditions, and other location based factors. Moving from a small town to a busy city, or even to a new postal code in the same region, can change your premium.
Myth: Insurance Costs Less If You Sign Up at a Certain Time of Year
Seasonal timing does not affect auto insurance premiums. Rates do not change based on the month you buy a policy. They are calculated using regulated rating systems based on the driver, the vehicle, and the location, not the calendar.
What Really Affects Your Auto Insurance
Insurers base your premium on measurable risk factors such as:
- Driving record
Years of experience
Vehicle type and repair costs
Theft rates
How and where you drive
Area risk
Past claims
Understanding these factors helps you cut through the noise and make informed choices when renewing or shopping for coverage.
When Myths Cause Problems
Believing myths can cause drivers to make decisions that cost them money. You might avoid a vehicle you like because of its colour. You might assume your pet is protected when they are not. You might think you are stuck with high premiums forever, not realizing that better driving habits or policy adjustments could lower your costs.
The more you understand the facts, the easier it is to protect yourself properly.
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Auto insurance relies on data, not rumours. Knowing the truth behind common myths helps you choose the right coverage, avoid mistakes, and understand exactly what you are paying for.
If you want to review your policy or have questions about what is fact and what is fiction, reach out. Our team is here to guide you with clarity and confidence.
