10/27/2022
This week, I discussed with a client, the 4 biggest misconceptions about car insurance in Ontario:
1. You donāt need to insure your car if youāre not driving it.
2. Your insurance premium is based on how much your car is worth.
3. All insurance companies offer the same coverage.
4. The Ontario government sets insurance rates.
Keep on reading to learn why they are misconceptions....
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You donāt need to insure your car if youāre not driving it.
This is one of the most common misconceptions about car insurance.
People assume that if theyāre not using their car, they donāt need to insure it. But this isnāt the case. If you own a car, you need to have insurance, even if youāre not driving it.
The only time you wouldnāt need to insure your car is if youāve sold it or scrapped it.
Your insurance premium is based on how much your car is worth.
Another common misconception is that your insurance premium is based on how much your car is worth.
In reality, there are a number of factors that go into determining your premium, including your age, driving history, and the type of car you drive.(more on this later) While the value of your car is one factor, itās not the only factor.
All insurance companies offer the same coverage.
This is simply not true.
Insurance companies offer a variety of different coverage options, and itās important to shop around to find the policy that best meets your needs.
Not all policies are created equal, and you want to make sure youāre getting the coverage you need at a price you can afford.
The Ontario government sets insurance rates.
The Ontario government does not set insurance rates.
Rates are set by individual insurance companies, based on a number of factors.
The provincial government does regulate the insurance industry, but they do not set rates.
Share this post with a newcomer so they learn about these insurance misconceptions too!