Common Insurance Myths

When it comes to insurance there are a variety of types and two of the most common are auto insurance and home insurance. But as familiar as they are, there are also quite a few common myths associated with them and some of these myths could be costing you money.

Let’s debunk them and hopefully save you money along the way.

Auto Insurance Myths:

It’s time to set the record straight on some of the most common auto insurance myths.

  • Myth: Red cars cost more to insure than any other colour.
  • Fact: The colour of your car does not impact your insurance rate.
  • Myth: If a friend drives my car and causes an accident, it won’t affect my car insurance rate.
  • Fact: When you lend a car to somebody, you are lending insurance as well. It’s the insurance policy taken out by the owner of the vehicle that will handle any accidents that might occur.
  • Myth: My postal code does not affect my car insurance rate.
  • Fact: Each postal code has its own risk level in terms of theft and accident statistics, therefore some areas are more expensive than others to be insured in.
  • Myth: My loyalty discount offsets any savings I would get by changing insurance companies.
  • Fact: Changing insurance companies would mean losing your discount but that doesn’t mean you’re getting the best rate available. Shop around because sometimes the savings realized by switching providers outweighs the loyalty discounts you have, if you have any.
  • Myth: Coupes are more expensive to insure than sedans.
  • Fact: Just because it’s sporty, doesn’t mean it’s more expensive to insure. What’s important are things like the likelihood it’ll be stolen, its repair costs, and how well it protects everyone in the car from injury in a collision.


**Information derived from online sources.