calculating car insurance

Understanding Car Insurance: Myths and Misconceptions

In 2019, there were 35.7 million total vehicle registrations in Canada. Yes, this is a true statement, but other things you hear about cars and car insurance may not be. There are many myths and misconceptions out there that make it tricky to understand car insurance, but it doesn't have to be that way.

Understanding car insurance policies involve knowing the truth behind them. Read on to read a few common myths and misconceptions about car insurance.


No-Fault Insurance Is Not What It Sounds Like

Depending on the province you live in, no-fault insurance could mean a lot of different things. In most cases, your insurance company will pay medical expenses when you get into a car wreck, no matter who is at fault.

If you cause the crash, this does not mean you won't be required to pay something. Together, both insurance companies decide who is to blame, and that person will pay the cost of repairs and other damages. In short, no-fault insurance means medical bills get covered but not property damage.

Someone Who Borrows Your Vehicle Is Responsible for Damages

Understanding car insurance means knowing exactly who is responsible for damages to your vehicle. When you allow someone else to drive your car, your insurance policy is still liable for the damages. The other person's policy is not required to pay for anything.

The Colour Affects the Insurance Rate

Car insurance in Sherwood Park and other places do not base their policies on your car's colour. Instead, the policy is based on the vehicle's safety and how much it would cost to repair it. Other factors get considered, but not the colour of the car.

Tailor Made Insurance can customize an insurance plan that works for you and your vehicle.

I Don't Need My Policy to Cover Theft

Another common auto insurance misconception is that you don't need your policy to cover theft. Many criminals are attracted to popular vehicles, even if they are older versions. When a car is popular, criminals are more likely to try to steal their parts.

When you have a comprehensive auto insurance policy, it may cover other necessary things. This could include hitting an animal, vandalism, fire, or other natural disasters.

My Policy Covers Personal and Business Use

Using your vehicle for business duties is not always covered on an insurance policy. This is one of the car insurance myths that comes back to haunt people later on. To get business and personal use covered, you need to ensure your car for business use.

At Tailor Made Insurance, getting auto insurance is easy. We can create a plan for businesses or auto vehicles.

Understanding Car Insurance Better

Understanding car insurance is complicated. There are a lot of legalities that go into car insurance policies. By noting the top car insurance misunderstandings, you can understand car insurance better.

Do you want someone else to be responsible for finding the best insurance rate for your needs? Contact Tailor Made Insurance to guide you through the process today.