Car Insurance

Most Common Misconceptions About Car Insurance

There is a lot of misinformation about car insurance. People don’t take time to fully delve into the policies and pass on half-digested knowledge that leads to confusion. Insurance is a financial commitment that we should not risk entering without absolute facts.


Grandin Agencies has been providing insurance services for over 50 years. We know how people get into tough situations with insurance companies because they aren’t well-informed. In this blog, we will address the most common misconceptions about car insurance.

Take a look at the misconceptions about car insurance:

Having a bad driving record will make it impossible to get car insurance.
Few insurance companies may refuse to insure you if you have a terrible driving record. But if you are willing to pay a higher premium, you can find an insurance company that is willing to sell you car insurance.


Red cars cost more to insure.
This is an age-old myth. Insurance premiums are calculated based on the make, model, year of manufacture, engine size, and vehicle age. The colour of a car isn't considered a valid variable for insurance policies. However, cars with expensive modifications do cost more to insure because they are considered more likely to get stolen.


If your friend has an accident while driving your car, it won't affect your insurance record.
Vehicle crashes are recorded under the vehicle owner’s insurance policy. Even if the person driving the vehicle during the accident has personal insurance that offers great coverage, the insurance claim will be made through the vehicle owner’s insurance. The accident will stay on your insurance record and negatively affect your premiums.


Basic car insurance will cover for items stolen from your car, vandalism or damage by natural events.
You need a homeowner, property or renters insurance to cover for items stolen from your car. Damages caused by Acts of God, such as floods, tree branches falling on the car etc. and vandalism are covered if you have comprehensive coverage in your insurance policy.


Auto insurance is cheaper during the summer.
This myth follows the assumption that car insurance rates are reduced because people buy more cars during the summer. Seasons do not affect car insurance rates because insurance isn’t a commodity that has its rates set by supply and demand.


Parking tickets will raise my insurance rates.
A parking ticket does not indicate a violation that occurs when the vehicle is in motion, so insurance companies do not consider it as a risk. However, if your license is revoked because of unpaid parking tickets, it will reflect on your driving records and lead to increased premiums.


Injury coverage is not necessary because Canada has government healthcare.

When there is an accident, both the provincial healthcare and the auto insurance company are involved in reimbursing the expenses. The healthcare system covers immediate medical treatments after the crash. Auto insurance is required to cover non-professional healthcare expenses such as personal support and homemaking services.


Higher premiums are equal to higher coverages.

Each insurance company uses its metrics to calculate the premiums for a given driver-vehicle combination. This results in different rates across different companies for the same basic coverage.  

It cannot be easy to choose the right car insurance. Count on Grandin Agencies for any information related to car insurance. We offer car insurance, homeowners insurance, property insurance, motorcycle insurance and other insurance services. Read our blog if you have questions to ask about motorcycle insurance.

Contact us today to schedule an appointment for a car insurance consultation.

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