A line of cars waits in traffic, focusing on a red car's side mirror and highlighting the common myths about car insurance

When it comes to shopping for car insurance, there’s a lot to think about — and everyone seems to have advice and information to share. But how much of what you hear is actually true? Let us make things a little clearer by breaking down some of the most common myths about car insurance.

  1. “Red cars cost more to insure than any other colour of vehicle.” Contrary to popular belief, the colour of your car has no impact on your premium, so driving a red car does not mean you’ll pay more for car insurance. There are several factors that go into determining your premium, including the make and model of your vehicle, the way you drive, and where you live — but colour doesn’t come into the equation.
  2. “If my friend gets in an accident when he borrows my car, it won’t affect my insurance record.” Unfortunately, this isn’t usually true. If you lend your car to a friend and they get in an accident, your insurance company will likely need to pick up the tab, and the claim will probably remain in your file. Accidents happen, and that’s why you have car insurance — but remember, when you lend your car to a friend, you’re lending them your insurance, too.
  3. “Brand new cars are more expensive to insure than older cars because they’re more likely to be stolen.” Actually, the majority of the top 10 most frequently stolen vehicles in Canada in 2017 were at least 10 years old. If your brand new car costs more to insure than your older car of the same make and model, it’s likely because the new car would cost more to repair or replace in the event of a collision.
  4. “My car insurance company will cover items stolen from my car.” Your car insurance policy is there to protect you, your passengers, and your vehicle when an accident happens — but it won’t cover items that are stolen from inside your vehicle. The good news? Your home insurance or tenant insurance policy will likely have your back if your belongings are stolen from your car.
  5. “Men always pay more for car insurance than women.” The cost of your car insurance is impacted by several factors, including things like your age, your driving record, where you live, how far you drive to work, and your vehicle’s make, model, and year — and each car insurance quote is tailored to the individual driver. While it’s true that on average, men under the age of 25 generally pay more for car insurance than women of the same age (because they’re statistically riskier drivers to insure), men don’t always pay more for car insurance.

When you’re ready to shop for a car insurance provider, be sure to talk to your group’s licensed broker. Your group’s broker will do the homework for you, comparing products and prices across several insurers to find you the best coverage to suit your needs. They can also find out if you qualify for any common car insurance discounts and answer any questions you have along the way, too.

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