3 Insurance Myths to Be Aware Of When Buying Car Insurance

Plenty of myths plague the world of car insurance, and for those looking to obtain their own policy, these myths can easily be believed to be fact, thus affecting the final decision. For instance, some people actually believe that the colour of the car affects insurance premiums. Sure, there may be stories that different coloured vehicles may be more susceptible to car accidents, but insurance providers do not take this into account!

Were you one of those that previously believed in that myth? If so, then it’s time to really review everything you’ve heard about car insurance! Today, we are going to tackle various car insurance myths to ensure you pick the right coverage for your vehicle:

Myth 1. Speeding tickets will not affect your insurance premium

Unfortunately, they do. Insurance providers consider the speeding tickets you may have incurred, simply because this means added risk of offering you an insurance plan. In fact, if the issue is severe enough, they may not renew the plan with you at all! As such, if you have any unpaid fines or speeding tickets, cover them right away and stick to the speed limits at all costs.

Myth 2. Insurance policies do not take into account the car model

Car models certainly affect the insurance premium you have to pay. This is because different car models will have different repair costs, safety ratings, risk of theft, and other such liabilities.

If it is statistically proven that your car is much less likely to be involved in any type of damage, the insurance premium you will be paying will be much lower versus one that is at a higher risk of accidents. As such, if you want access to insurance policies with low premiums, pick a car that is ranked low risk! Remember, the lower the risk, the cheaper the premium.

Myth 3. Your premiums do not change depending on where you live

Much like how a car model can affect the premiums you deal with, where you live also does affect it. This is because different areas of the country have different factors, like auto theft rates or road accident statistics. For instance, your car may be more likely to be stolen in a rural area versus an urban area. That said, urban areas have much higher rates of car accidents simply because there are more cars there!

All of these factors are things the insurance provider will consider, and they will affect the final cost of your insurance policy.


There are many myths that float around the car insurance world—many of which may affect what you believe to be the right price to pay for your car insurance. As such, searching up what you’ve heard to figure out whether they’re true or not is a must-do to ensure you have the right facts in your hand to make the best decisions!

If you still need assistance in picking the right insurance, don’t be afraid to reach out to a local insurance provider. They will help you understand what goes into setting up a policy for you, giving you a clear picture of how much you are paying, why you are paying that amount, and the benefits you will get!

Direct-Line Insurance is your local insurance provider in Alberta helping to cover homes, autos, businesses, and more, offering the protection needed to give everyone peace of mind. If you are looking for car insurance, reach out to us today!