A Crash Course on Auto Insurance: Debunking Some Myths

Are you planning to get a car for the first time? Then you have probably heard about the importance of car insurance from your parents, your friends, and acquaintances. They may all agree on some things but not on everything Don’t just take anyone’s word on it – talk to a licenced insurance broker who can guide you through your decision.

Car insurance is not something that needs to be debated. There are facts that you need to strain from the myths. Here are some common misconceptions about car insurance that need to be addressed.

Myth: Older Cars Get Lower Insurance Premium Rates

If you’re on a tight budget, you might purchase a car that’s used. You might think that you may not get big insurance premiums on your older vehicle. The truth is that it is not the only factor that insurance companies take into consideration.

While most old cars may get lower premiums, the age of the vehicle is not always the primary reason why. Companies look at the make and model, the driver of the vehicle, and how the vehicle will be used. The best solution to get better deals is to talk to your broker openly.

A conversation with your insurance broker is all you need to see what rates and policies you qualify for. Ask all the questions you could possibly ask about the policies to see if you are eligible for any other coverage.

Myth: Red Cars Cost More to Insure

The myth of red cars costing more isn’t entirely traceable, though it is popular among many car owners. But don’t be upset if you were planning to get a red car. The colour has nothing to do with insurance costs. Why? Because charging more for the colour of the car doesn’t make any sense.

The only factors that matter are those you can control: your driving history, how far you drive, and more. The car’s structure also plays a role in insurance debacles. If your car is hard to steal and less prone to damage, the less you pay for insurance.

Myth: Parking Tickets Affect Premiums and Demerit Points

Parking tickets aren’t a felony. Even the best drivers can get them sometimes without their knowledge. Do they affect your premium? No. Will you incur demerit points? No. However, speeding violations and similar incidents can earn you demerits.

But just because these don’t affect your insurance doesn’t mean that you should put off paying them. Unpaid parking tickets can be a problem when you renew vehicle plates. Instead of letting them accumulate, pay them as soon as possible.


Auto insurance is required by law across the country, but that doesn’t mean that all insurance deals are the same. Car insurance can vary across cities and provinces in Canada. Rates, insurance delivery, and minimum coverages are all different. Public and private systems are also an option when it comes to your auto insurance.

If you’re looking through these myths, you are most likely on the hunt for car insurance quotes, comparing one to the other to find the best one. Well, the search can stop here. Direct-Line Insurance is an all-around insurance service for homes, cars, businesses, and farms. Contact us today!