So you recently passed your driver’s test? Or perhaps you know a new driver?
Hitting the road for the first time as a fully licensed driver can be exciting and overwhelming. Let’s bust some famous auto insurance myths to start:
MYTH: Insuring a red or black car is more expensive than a green or blue car.
TRUTH: Regardless of the colour, the same vehicle in a difference colour will have the same rate. What does affect your rate is the year, make, model, age of the car and drivers on your policy.
MYTH: Auto insurance rates are not regulated and car insurance companies can charge whatever they want.
TRUTH: In all provinces except Quebec, by law insurers must submit their rates to government agencies for approval. The government agencies review how insurers calculate their rates and decide if their rates are fair.
MYTH: If your friend borrows your car and wrecks it, his insurance covers it.
TRUTH: Actually, you should consider your insurance as part of your car. When you loan someone your car, you’re loaning your insurance with it, so consider this and how your premium will be affected if they have an accident. You could also be held financially responsible if they cause an accident while driving your vehicle.
MYTH: My rates will be similar to my friend’s rates.
TRUTH: Rates are determined based on the individual, so factors such as age, driving record and type of vehicle are considered. Each person’s situation is unique, and rates will vary because of this.
Here are some tips and quick facts for young drivers:
Consider gaining experience as an occasional driver under the insurance policy of a parent or guardian, rather than as a principal driver of your own vehicle. Premiums for young, occasional drivers are much lower than premiums for young, principal drivers.
As a young driver, building a good driving record free of at-fault accidents and driving convictions is the best way to ensure low future premiums.
Do not listen to your friends and purchase insurance from somebody because it’s cheap. Finding a good price is very important, but not as important as making sure you are covered properly.
Last but not least, stay safe and be alert! Traffic crashes are the number one cause of death for young adults. 30% of those crashes are caused because of driving while under the influence. ALWAYS call your parents, a cab or take public transportation if you or your driver has been drinking and had planned to drive.