5 Auto insurance myths debunked

3 min read on car

May 27, 2017

When it comes to auto insurance, there are a lot of misconceptions that have surfaced over the years. But the problem with misconceptions is that the more people share them, the more people begin to believe they are the truth.

Below are five of the top myths associated with your car insurance that we are debunking once and for all.

Myth #1: “I’m the only one who drives my vehicle, so I’m the only person in my household that needs to be insured.”


You need to inform your insurance company about any licensed driver residing in your household who has access to your keys and vehicle. If they already have their own policy and a good driving record, there should be no impact on your insurance premium.

Myth #2: “I’ve heard that red cars cost more to insure than any other colour.”


The colour of your car does not impact your insurance rate. What rates are based on is the make and model of your vehicle. Colour isn’t a variable to any insurance policy.

Myth #3: “My auto insurance should be lower because my car is brand new.”


New vehicles often have better safety features to protect yourself and your passengers. They may also cost less to repair, and often include anti-theft devices, which make them less attractive to thieves. However, to accurately assess an insurance rate, a combination of factors must be considered.

Insurance rates are based on a combination of factors:

  1. The type of vehicle you drive ­– are you driving a sports car or a 4-door sedan? Whether new or not, some vehicles are more expensive to insure.
  2. Where you drive – are you in a big city or a smaller town?
  3. How much you drive – a real estate agent will probably do more driving than a stay-at-home parent.
  4. Your personal driving record and claims history – if you don’t have any speeding tickets, this will positively affect your insurance rate.
  5. Your driving experience – this includes how long you’ve had your license and how long you’ve been driving.
  6. The amount of coverage you purchase.   
  7. The deductibles you choose.

These factors combined are the most accurate way to determine your insurance rate.

Myth #4: “My auto policy doesn't cover acts of God.”’


If you have basic coverage, you are only protected if you are in a collision. However, if you add on comprehensive coverage, you are protected from the following acts of God, including windstorm, earthquake, hail, explosion, and rising water. In addition, comprehensive coverage protects you from theft, attempted theft, vandalism, fire, and glass breakage. Comprehensive coverage even covers accidents that happen while a train or boat is transporting your car.

Myth #5: “My profession does not affect my insurance rate.”


If your occupation requires you to drive your vehicle frequently or for long distances or commutes, it may affect your insurance rate. To find out more about specific rates, contact your insurance provider.

At Johnson Insurance, we value our hard working, community-focused customers. Many nurses, teachers, some public service workers, skilled professionals, emergency response workers, University alumni, and retirees can qualify for special discount rates.

There you have it. The truth. Now go ahead and buy the red, pink, or matte black car, and share your newfound knowledge with family and friends.

Want to know more about auto insurance? We're always here to help. Contact us.

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