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How does insurance pricing work, and where does driving history come into play when it comes to determining insurance rates? Below you'll find explanations for common auto insurance myths, followed by information that will help you understand the factors that do affect auto insurance rates.
Lol, are we being serious? Well, yes and no. Yes because this is actually a consideration for some, and no because… well just because! How much does the colour of a car affect its price? While there are rumours that cars with certain colours cost more than others, there is no evidence of this. The make and model will affect the price, but not the colon.
The price of the car you buy does not have as big an effect on your insurance premium as the type of car it is. Some mid-size models cost more to insure than luxury vehicles, even though they are cheaper to buy, because they get into more accidents. It is a good idea to seek out quotes prior to purchasing a car to get an idea of what it may set you back, and to avoid any nasty surprises after you buy it.
Getting a ticket is never a good thing, but if your violation is minor and your record is clean overall, your rates will not increase. However, things may change with multiple offenses.
Although CTP insurance is a requirement to drive, having this policy alone will not be enough if you have an accident. You will pay more out-of-pocket expenses if you don’t purchase enough coverage - primarily costs associated with the repair of your vehicle. Talk to your insurance broker to ensure you purchase the right amount of insurance based on your individual requirements.
This is not true. The inclusions of these insurances vary policy to policy. Further to that, the speed to a response, total time taken from lodging your claim to pay out, the repairer you’re able to use, the replacement vehicle - these are all some and not all of the many things that differ between comprehensive insurance policies. A cheaper premium price is not always the best outcome, as it could mean you are giving up some other important areas of the policy and trading it off for the price.
We hope this article proves to be useful when it comes to helping you gain a better understanding of how car insurance actually works. While it may seem confusing at first, the information that we’ve laid out should go a long way in furthering your understanding of car insurance. Be sure to keep everything you’ve learned here in mind so that you can make the most informed decisions regarding car insurance.
If you’re looking for a car insurance broker, Ensura has got you covered. We service insurance for businesses, motor vehicles, and homes. For more information on what we can do for you, visit our website today!
Disclaimer: As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy document. The information contained on this webpage is general only and should not be relied upon as advice. The opinions expressed in the Blog are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific insurance product. It is only intended to provide education about the financial and insurance industry. The views reflected in the commentary are subject to change at any time without notice.
