11 Myths About Auto Inurance in Ontario

There are many things about auto insurance we assume that will increase the premium charged but sometimes these assumptions has no grounds. Following are few points which will help residents of Ontario to understand auto insurance better and might be helpful in saving money on car insurance

1 Price you pay for car: Other factors being constant, Insurance does not take into account whether u pay $1 or $50000 to buy a car or get it as a gift or won in a lottery. Insurance company base premium on cost of repairs in case of lose. In most cases expensive and newer the car higher the premium unless it’s a antique

2 Color of car: Other variables being constant, color of your car has nothing to do with premium u pay for insurance

3 Leased, Financed or Owned: Whether u lease, finance or own the car outright, if coverage u choose is exactly same premium charged will be same

4 Specified perils or Comprehensive Claim will increase my premium: A specified peril or comprehensive claim does not affect ur premium. So if u claim for theft of car or for cracked/chipped windshield damage, it will not increase ur premium

5 Not At-Fault accident will increase my premium: If the accident is not considered ur fault and u claim for damages it will not increase ur premium whether company pay out $1 or $10000. Well purpose of auto insurance is to protect u when it’s not ur fault in accident. If its ur fault, they protect u but u have to pay for protection provided with increased premium on renewal

6 If I don’t claim, my insurance will not go up: Assuming u don’t have Accident Forgiveness coverage and if its considered ur fault in accident whether u claim $0 or $100000 ur premium will go up on renewal. U cannot get rid of fault saying that it was a minor accident or fender bender and I did not claimed anything

7 If my points are dropped or if I didn`t get any points for the ticket it will not be on my record: Convictions stays on ur record for 3 years from the date of conviction and not from date of offence or when u get that ticket. Further if u loose any points or points are dropped in court, ticket still stay on record unless ticket is dropped. If u pay the fine on ticket or pay reduced fine after the court trial, it means u have accepted that u have made an offence

8. If police says I’m not at-fault, insurance company will consider me not At-fault: In case of accident police can define if u are criminally charged or not but only ur insurance company has final say on whether u are considered at fault or not based on fault determination rules defined in insurance act of Ontario. Police report can only help in determination of fault. Example of that would be suppose its bad wheather and ur car skid on a icy patch of road and u hit a guard rail or car went into ditch, police may not charge u for negligence or any crimial or traffice offcence but in eyes of insurance companies thats an at-fault accident

9 It was bad whether, my car skid so it’s not my fault: In Ontario single vehicle accident is considered AT-Fault accidents. Insurance will say, in case of accident they have to define someone at fault, since they can’t sue or blame whether so its ur fault. Further, say if 1000 people drive on same road in same whether, if u had accident or u skid in ditch – it’s ur fault

10 A small claim won’t affect my rate as much as large one: Amount company pays out for claim does not matter, only thing matter is whether u are considered at-fault or not

11 I will get a lower premium if I have a licence higher than G class: Other variables being constant, whether u has class B, F, D or A licence it doesn’t matter. Rate is based on class G2 or G licence