What affects the cost of car insurance?

It’s common to review insurance policies with pre-conceived notions of what is and isn’t covered. For example, many of us believe that red cars cost more to insure, but that’s false.

When looking through options and researching providers, it’s important to remember that there are a lot of misconceptions about policies and coverage out there. With that in mind, here are some common myths dispelled:

Expensive cars mean higher premiums. Not really. While the price of your new car has some impact on the premium, the quote you receive is dependent mainly on the history of your vehicle. It is very possible for a cheap car to have a higher premium if it has had an unfortunate past, and vice versa.

If someone else crashes my car, it will not affect my insurance. Unfortunately, not true. As much as you wish that your friend crashing your car shifted the financial responsibility over to them, it really does not. When you lend your car, you also lend your insurance, and therefore all claims will be treated as though you were driving.

No-fault insurance means the accident is nobody’s fault. Another myth. While the term “no-fault” might make things confusing, the fact remains that fault is determined in all accidents. In the interest of time and client experience, “no-fault” insurance means that for most claims you don’t need to chase after another insurance company, but rather your own company will settle your loss with you.

I got a speeding ticket, but not demerit points, so it’s fine. Even if you did not get demerit points, all traffic violations other than parking tickets can impact your auto insurance premium.

Insurance providers such as Belairdirect will work with you to make sure you have the appropriate protection. Find out more at belairdirect.com.

Source – www.newscanada.com