Insurance Myths…. Busted!

BY Courtney Daye | Nove 20, 2017

A Must Read: Busting common myths about auto insurance

MYTH: Insurance companies keep changing the rules on what is and isn’t covered.
FACT:  Auto insurance is highly regulated by provincial and territorial governments who set minimum coverage levels. Insurance companies cannot change basic coverage or premiums without government approval.

MYTH: Being caught driving without wearing a seatbelt doesn’t make me a dangerous driver, so my insurance premiums shouldn’t go up.
FACT: While you do not pose a danger to other drivers when you don’t wear a seatbelt, you do pose a serious hazard to yourself. If you are in a collision when you are not wearing a seatbelt, you are much more likely to sustain injuries. Your insurance company pays your medical expenses. The cost of the rehabilitative care for a whiplash-type injury is lower than the cost of treatment for injuries sustained as a result of being thrown out of a car during a collision. This is why your insurance premiums may increase if you are convicted of driving without a seatbelt.

MYTH: It’s difficult to get paid for a claim.
FACT: Home, auto and business insurers paid more than $30 billion in 2013 to help individuals and businesses get the care they needed, replace lost income, and repair cars and other property

MYTH: You always get less than you ask for, so inflate your claim.
FACT: Inflating an insurance claim is a crime. Insurers will pay you for your losses according to your policy terms, levels of coverage, deductibles, and other factors. Your adjuster may review your receipts and other details to ensure you receive appropriate value and service. Insurance crime increases insurers’ claims costs and, ultimately, costs everyone in the form of increased

MYTH: If a friend drives my car and causes an accident, it won’t show up on my insurance.
FACT: If your friend borrows your vehicle they’re borrowing your insurance too, so choose wisely the next time someone asks. If your friend gets into an at-fault accident when they are operating your vehicle it will likely affect your insurance no matter if they have auto insurance or not, because it involved your vehicle. Their accident is associated with your vehicle so it is on your record.

MYTH: You only need travel insurance if you’re vacationing outside of Canada.
FACT: Many Canadians would assume if they’re travelling within Canada, outside of their home province they don’t need travel insurance. Provincial medical coverage doesn’t provide comprehensive coverage if you happen to fall ill while travelling outside your home province, so it is very important to be insured. Out-of-country medical expenses could set you back in the tens of thousands and even an emergency room bill is $1,000, a hefty price to pay because you weren’t insured.

MYTH: Auto insurance covers your personal property left in your vehicle.
FACT: Many people believe that if they leave their valuable items left in their car, the items will be covered if they are stolen or damaged in an accident. This is not true. In the event of a loss, items such as golf clubs, cell phones or jewellery for example would instead be covered under a property insurance policy (home, condo, or renters insurance).

MYTH: My insurance company will cover damage if my car is stolen damaged by vandalism or fire.
Your insurance company will cover those damages if you have purchased comprehensive coverage on your insurance. Comprehensive coverage is not mandatory, so if you have the bare minimum coverage you may want to call your insurance broker to add it on. To be sure your vehicle is fully protected it is always a good idea to add on Collision coverage as well. This coverage will ensure you are covered in case an accident occurs; it pays for the losses caused.

MYTH: When you move, your auto insurance rate will remain the same.
FACT: Depending on where you move, your rates may change significantly when you move from one city to another, or even just changing a postal code within a city. Your postal code has a say in your rate, but so does your commute. If you move farther away from your job, generally speaking your rates will climb.




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