Our team gets asked a lot of different questions about auto insurance, and often what people thought was true, was actually a myth. At Ostic, we want our customers to understand their auto insurance, so we’ve put together our top frequently asked questions and answers for you — and we’ve added in some clarifications to the most popular myths.
If you drive a red car, your insurance premium will be higher.
False. The colour of your car has nothing to do with your insurance. Your premiums are calculated based on a number of factors including: type of vehicle, horsepower, postal code, age of driver, number of kilometers driven, etc. Colour never factors in.
Will I get a discount if I have winter tires?
Yes. If you install winter tires on your vehicle, you will be eligible for a discount on your premium. Typically the discount is in the 5% range.
No one else can drive my vehicle except the people listed on the registration.
False. Most insurance policies typically cover guest drivers under your insurance policy. The person you lend your vehicle to must have a valid license and be legally allowed to drive in the province/territory. The lending of your vehicle must not occur on a regular basis, if it does, then you should add the person to your policy.
How can I reduce my premiums and save money on my auto insurance?
There are many different things you can consider to lower your premiums including:
- Increasing the amount of your deductible
- Ask if there are retiree discounts or students discounts available
- If you are a young driver, consider taking certified driver training- it may be less expensive to get lessons from your parents, but a certified driver training course will typically result in a lower premium
- Consider combining your various insurance policies with one provider- having more than one type of insurance with a company typically results in a discount
- If you are looking at purchasing a vehicle, you may wish to opt for a less showy vehicle- for example sport cars will get stolen more than sedans
If you get a parking ticket your insurance rates will go up.
False. If you get a parking ticket, it will not impact your premium. The violation information is recorded and will only be a concern if you have not paid the fine when it is time to renew your license. If, however, you have a more serious infraction where you accumulate demerit points or a license suspension, then that’s a different story.
At Ostic, we have all the answers you need when it comes to your auto insurance. Give us a call today.