Auto insurance myths debunked

(NC)-Insurance can be confusing at the best of times, but the followers are some of the most park myths about auto insurance in Canada.

Car coloring material affects your insurance rate

False. It doesn't matter if your car is blue, red, Ag, white, or black, your rate for that make and model will be the same.

2-doors cost more to insure than 4-doors

Not true. Insurance companies look at the price of the car, fix costs, theft frequence and its previous claims history when determining the rate-not the figure of doors.

Parking tickets will affect your insurance rate

Parking tickets do not count against your insurance, but unpaid fines might affect your ability to renew your driver's licence or worse, consequence in a license suspension - which will affect your rate.

acquiring a speed ticket means your insurance rate will go up

It depends. Your first minor speed ticket will likely not affect your insurance rate. But get two or three and you'll likely pay more to be insured person. A major speed ticket (typically 45-50 km/h over the limit) and your rates go up for sure.

Cheaper cars cost less to insure than luxury cars

Not needfully. The rate you pay for auto insurance is based on factors like the price of the car, its fix costs, theft frequence and its previous claims history. When these factors are combined, a cheaper car could cost more to insure than a luxury model.

It doesn't matter which insurance company you have insurance coverage with, you'll pay the same rate

decidedly not true. Auto insurance rates vary well. Recently, www.kanetix.ca, an online auto insurance quote comparing service, looked at over 8,000 online quotes provided to Lake Ontario shoppers with no tickets, accidents or claims.

Each received quotes from, on norm, 10 of Canada's most competitive insurers, including financial institutions, brokers and direct writers. The lowest and highest premium from each visitor's set of quotes was then recorded and the average difference in premium calculated. The results showed that premiums differed on average over $900.

It just goes to show that comparing quotes is time well spent. Shop around for auto insurance quotes to make sure you are getting the coverage you need at the best available price.