Because there are so many different car insurance companies and each has its own set of rules and policies, it’s understandable that the industry is perennially dogged by rumour and legend. But the truth is out there, and in most cases the popular view is relatively accurate, but not exactly correct. When you’re looking for a Calgary auto insurance quote, it helps to be aware of whether your assumptions are true or false. And if you find these issue a little difficult to sort through, you might benefit from seeking a consultation with a licensed professional.
Myth: Car insurance is always cheaper for drivers over 25.
Fact: When you get a Calgary auto insurance quote, there are many factors that the company takes into consideration, and age is only one of them. Insurers also look at vehicle safety information, past claims history, and other demographic factors unrelated to age. So, while there’s a good chance that your insurance rates will go down if you’re turning 25 soon, any number of other factors can actually drive your rates up. Be sure to read your policy in detail before coming to any conclusions.
Myth: Insurance bundling always gives you cheaper insurance rates.
Fact: There’s a widespread rumour that if you buy insurance through a company with which you already have a different kind of policy, then your Calgary auto insurance quote will be lower. Although bundling is often convenient and it can have a positive influence on your rate, it’s not the only thing to take into consideration. When shopping for insurance, be sure to get several quotes from different companies, and you may find that you can actually find better rates when you don’t bundle.
Myth: Rental reimbursement pays for crashes in rental cars.
Fact: Many people mistakenly assume that their rental reimbursement coverage will pay for anything that happens to cars they rent, and as a result they may opt not to get insurance for rental cars. However, this assumption is far from the truth. In reality, your rental reimbursement coverage only pays for the cost of renting a car when your personal vehicle is damaged as a result of an accident.
Myth: Comprehensive insurance covers everything.
Fact: The name “comprehensive” is a little misleading. Comprehensive coverage doesn’t actually cover everything, and it’s certainly not a replacement for your required liability coverage. In reality, comprehensive insurance is supplemental coverage that pays for specific types of non-collision damages, including those resulting theft, fire, weather, or vandalism. If you’re not sure how much more this will cost you, get a Calgary auto insurance quote that includes comprehensive coverage and see how it stacks up.
Myth: Insurers can charge whatever they want.
Fact: When people get upset about their insurance rates, one of the common complaints is that it’s just not fair how insurance companies are allowed to charge whatever they want. But this is simply not true. The fact is that insurance companies are highly regulated, subject to both national and provincial laws. While their rates are not always as user friendly as some might like, lawmakers at least try to ensure that the regulations are beneficial for both customers and providers.
