Our newly emerging era of fake news harkens back to the era of rumour and myth that was so devastating to so many individual. The perpetuations of these myths however, continue to have a negative impact on our collective social and personal goals.
When it comes to cars and insurance, there is no shortage of myths, beginning with red cars – more expensive insurance, more speeding tickets, and a compensating for any number of other inadequacies. The reality is that nobody asks for the colour of the car when you’re getting a quote – the make, model and year of your vehicle, as well as your claims history, will affect your insurance rates-not the colour. The reality is that the insurance industry is colour-blind. It doesn’t matter if your car is blue, red, black, or beige – your insurance premium is not impacted by the colour of your car.
Factors that Actually Matter
With so many insurance stories from so many different drivers – it can be difficult to know which stories are fact and which are fiction. While the colour of your car is not a consideration, insurance companies will take into consideration these factors:
- Age – if you are under 25, you will pay more for car insurance;
- Your driving history – speeding tickets will affect your insurance premium, for example, and depending on the severity, it may result in your insurance being cancelled at your renewal;
- The type of car you drive – insurance companies look at factors such as repair costs, theft, vandalism, and safety ratings so consider a car that is ranked low risk by the Insurance Bureau of Canada;
- What you use your vehicle for – personal, recreational, or commercial use. A driver who only uses his vehicle occasionally will pay lower premiums than one who puts on a lot of miles each day;
- Where you live – in Alberta, your insurance premium will differ depending on whether you live in an urban, suburban, or rural area. If you live in an area with a high auto theft rate, expect to be paying a higher price for insurance;
- The type of coverage you choose – personal liability and property damage insurance, accident benefits, and additional coverage including collision, specified perils and comprehensive insurance. The amount of coverage you choose, as well as the deductible, will play a part in how much you pay for premiums; and,
- Industry-related factors such as markets, inflation, taxes and regulations – your premium may be affected if you were without auto insurance for two or more years.
There are other factors that affect your car premiums in Alberta other than your driving and accident records. Most insurance companies offer discounts for multiple vehicles, anti-theft devices in vehicle, hybrid vehicles or if they use an insurance company for both their car and home insurance. Newly licensed drivers who have completed a driver training program may see lower premiums, and on the flip side, the more years you’ve been driving, the lower your premiums if you continue to have a good driving record.
Confused about Insurance Myths? Call MBS Insurance Brokers in Edmonton
At MBS Insurance Brokers Ltd., we walk you through the process in a clear and professional manner – dispelling any myths or misconceptions you may have heard about insurance in Alberta. We’re here to find the best combination of coverage and price from leading Canadian companies that meet your unique needs.
If you have questions about vehicle insurance in Edmonton and the surrounding areas, contact MBS Insurance Ltd. at 780-436-7880 today to request a quote and speak with our team about your comprehensive options.