Auto Insurance Myths Debunked

At Merit Insurance, we know auto insurance can be confusing, and with so much misinformation out there, it’s easy to believe some common myths. To help you make informed decisions about your coverage, we’re clearing up some of the most persistent ones.

Myth #1: Red Cars Cost More to Insure

A lot of people think red cars come with higher insurance rates. The truth? Insurance companies don’t care about the colour of your vehicle. What matters are factors like the make, model, year, engine size, safety features, your driving history, and where you live.

Myth #2: Minimum Coverage Is Enough

Every province sets minimum auto insurance requirements, but having the minimum might not be enough. If damages exceed your policy limits, you could pay out of pocket. Increasing your coverage can help you avoid unexpected expenses.

Myth #3: If a Friend Borrows Your Car, Their Insurance Pays for Damages

When someone else drives your car, your insurance follows the vehicle, not the driver. If your friend gets into an accident while using your car, your policy will likely be responsible for covering the damages. Make sure you understand the risks before handing over the keys.

Myth #4: Parking Tickets Affect Your Insurance Rates

Unpaid parking tickets can lead to fines or problems renewing your license, but they don’t directly impact your insurance rates. However, traffic violations like speeding, reckless driving, or DUIs can lead to higher premiums.

Myth #5: Older Cars Don’t Need Comprehensive or Collision Coverage

Some people assume older cars aren’t worth insuring beyond the basic coverage. While it may not make sense to carry full coverage on a very low-value car, keeping extra coverage might be a good idea if your vehicle still holds value or is essential to your daily life.

Myth #6: A Higher Deductible Always Saves You Money

A higher deductible can lower your monthly premium, but it also means you’ll have to pay more out of pocket if you need to make a claim. It’s crucial to balance affordable premiums and a deductible you can comfortably cover.

Auto insurance doesn’t have to be confusing, but believing common myths can lead to unexpected costs and gaps in coverage. Understanding how your policy works can help you make better decisions and stay protected on the road. If you have questions about your coverage, Merit Insurance is here to help.