Debunking the Common Myths About Auto Insurance

Separating Fact from Fiction as it Relates to Your Auto Insurance Coverage

It is quite likely that a vast majority of students would prefer to have any form of testing eliminated from the school curriculum; a parallel sentiment could be true for most people who must take part in training/re-certification programs as part of their job requirements.

However, in circumstances where testing is mandatory, these individuals would probably prefer formats involving true-or-false questions rather than writing essay-type answers; with a select-one-or-the-other type design, there is little room for interpretation and the ultimate decision is quite clear (pass or fail) whereas the composition style can be a bit more difficult to interpret and assess as it reflects the writer’s personal opinion.

In many respects, this can be likened to purchasing auto insurance; though policyholders would certainly prefer cut-and-dried (i.e. true or false) answers to questions about how auto insurance works, much of the information available to them might be complicated, ambiguous, and/or laden with opinions that are not necessarily based on solid evidence. Consequently, this can affect their buying decisions with respect to coverage options and in turn negatively influence their annual premiums.

In an effort to demystify/debunk the common misconceptions about auto insurance and provide more clarity that can assist Durham Region drivers in making informed decisions about their coverage, and thus improve their rates, we offer these insights to help distinguish auto insurance myths from actual fact:

Myth: Premiums automatically increase when a driver is involved in an accident

  • This will more likely be the case only when a driver is deemed to be at fault
  • Rates can go up for such reasons as: driving history, location, inflation, etc.

Myth: Bright-coloured vehicles (e.g. red, yellow) are more expensive to insure

  • They might be easier colours to see on the road but they do not affect rates
  • Rates are based on: make, model, vehicle age, driver’s age and record, etc.

Myth: The cost to insure a car grows proportionally with the age of the driver

  • Not necessarily – drivers over 55 years old could be eligible for reduced rates

Myth: People who drive borrowed vehicles are covered by their own insurance

  • Caution is highly advised with respect to who is allowed to drive one’s vehicle
  • If a non-owner has an at-fault accident, it can affect the vehicle owner’s rates

Myth: Auto insurance will cover any damage caused by theft, vandalism, or fire

  • This is only true if/when the driver has comprehensive coverage in their policy
  • Note – comprehensive coverage is neither automatic nor mandatory in Ontario

Myth: Auto insurance covers theft/damage of personal items left in the vehicle

  • There is no correlation between loss of valuables and where they are lost/stolen
  • Mobile devices, golf clubs, tools, etc. are covered by a property insurance policy

Myth: Cheaper and older vehicles cost less to insure than newer/expensive cars

  • A common misconception – some lower-priced cars actually cost more to insure
  • Factors in play here include safety features, likelihood of theft, repair costs, etc.

By this point, it should be apparent to residents of Durham Region that there are many myths and misconceptions about auto insurance, and those who proceed with purchasing their insurance without seeking full clarification might subject themselves to inadequate coverage and/or unnecessarily high annual premiums.

To alleviate such consequences, local drivers might want to consult with the experienced insurance brokers from Petley-Hare Limited in Oshawa to make sure that they have the appropriate auto insurance coverage for their needs, at the most affordable rate as well.

Knowledgeable and Reliable Advice on the Best Auto Insurance for Your Needs

Best Auto Insurance For Your Needs

The auto insurance experts at Petley-Hare Limited can offer valuable insight to drivers in Durham Region with respect to satisfying their respective and particular coverage needs. Based on decades of experience in helping residents of Oshawa and its surrounding area with their auto insurance policies, the Petley-Hare professionals are very knowledgeable and trustworthy when advising clients on the facts (and the fiction too) about costs and coverage as they pertain to:

  • Vehicle make, model, and age
  • Driver’s age and driving history
  • Estimated annual driving distance
  • Vehicle usage (business or personal)
  • Other factors specific to Durham Region

For more information on the support offered by the experienced auto insurance brokers from Petley-Hare Limited, visit our comprehensive auto insurance section.

To determine the best auto insurance coverage for your explicit needs and those of other drivers in your family, call the specialists from Petley-Hare Limited at 1-800-216-5324 today or contact us to book a complimentary consultation at a time that is convenient in your schedule.