Most people who aren’t familiar with the car insurance world have preconceived ideas about insurance, many of which are false. Here, we’ll debunk some of the most popular myths and set the record straight.
It’s always better to go into the process of finding car insurance knowing exactly how things work.
Myth: One speeding ticket with cause your rates to skyrocket
Although it’s true that when it comes to car insurance quotes – iselect and other companies will take into consideration your driving record, one speeding ticket – particularly if it’s your first – is not going to have a significant impact on your insurance premiums. In fact, your first speeding ticket likely won’t have an impact on your premiums at all, particularly if your record is clean and you don’t have any recent claims.
Myth: Your credit load doesn’t affect your insurance premiums actually, it might.
Many insurance companies do factor in your credit score when determining not only
your eligibility for insurance but also the premium you’ll be required to pay. If you have poor credit, you could be subject to a higher premium than someone whose credit score is higher.
Myth: Insurance doesn’t get involved if you’re struck by a car while riding your bike
If you are injured by a motor vehicle while riding your bike, you may be covered by your car insurance policy. This will depend on the particulars of your policy.
Myth: In the event of a break-in of your car, insurance will cover the cost of the stolen items such as your cell phone.
In most cases, your car insurance will not cover the replacement cost of the items that were stolen.
Generally, the claim for those stolen items should be made under your homeowner’s insurance. In most cases, your car insurance will only cover the cost of replacing items that are attached to the vehicle, such as the sound system.
Myth: The colour of your car has a bearing on your insurance premiums
This is false. There is no evidence that buying a car of a certain colour will impact your insurance premiums at all.
Myth: Having gaps in your insurance coverage won’t affect your premiums
If you haven’t had a car for a couple of years, and therefore haven’t had insurance, it could be a strike against you in the eyes of insurance companies, but not necessarily. If you have a good reason for not having had a car, such as having been in the military, the insurance company will not likely hold that against you in terms of your premiums or coverage.
Myth: It’s OK to lie on your insurance application
Absolutely not! It is never OK to lie on your insurance application. If you are ever caught in the lie, your coverage may be voided. You don’t want to find out you don’t have the coverage you need when you need it most!