Debunking 3 Common Myths About Canadian Auto Insurance

Getting car insurance is a fairly rudimentary process that’s as essential as buying the vehicle itself. For years, institutions and automotive safety professionals alike have emphasized the need to invest in appropriate products because of the constant risks of being on the road. Regardless of what car you drive or how much you travel in a year, having car insurance will always be important because of how much of a difference it makes when disaster strikes.

As you come to terms with the fact that you’ll eventually need car insurance, there will be a few things that you may wonder about along the way. Thanks to the abundance of available options (such as those carried by Direct-Line Insurance), it is important to further investigate before making a decision.

Amid all the different pieces of knowledge that you’ll need to consider as you shop around for the perfect car insurance product, you’ll eventually get to the point where you’ll be more concerned about the myths that you may have heard.

Going Over a Few Common Car Insurance Myths

While misconceptions are an inevitable part of everything we deal with in our lives, they’re especially common when it comes to car insurance. Drivers need to do a little homework to make sure they make the best decision for their car insurance.

To help ensure that you approach the car insurance purchasing process from the most informed standpoint possible, let’s go over three common myths surrounding the product:

1) “My Car Insurance Will Not Be Affected When Someone Borrows My Car and Gets into an Accident.”

One of the most common grey areas in the car insurance world is the part that deals with borrowing and unforeseen accidents.

The one thing you need to know about insurance policies is that they’re closely tied to the vehicle that it is purchased for. This means that when someone borrows your car and gets into an accident, your car’s policy itself will end up being affected. On top of all this, an accident without your involvement can still cause your auto premium to rise, which only solidifies the fact that you’re responsible for what happens to your car.

2) “The Best Coverage Will Always Cost a Pretty Penny.”

This isn’t necessarily the case.

The best type of policy is one that provides you with the right type of protection for your individual situation. You need to work with a broker to determine what coverages are important to you and also which work within your budget.

To find out what type of car insurance policy works best for your needs without breaking the bank, Direct-Line Insurance’s representatives will do a needs-based analysis to set up a policy that is tailor-made just for you!

3) “The Minimum Policy Required by Law Is More Than Enough.”

Over the years, the importance of car insurance has been further emphasized by the fact that Canadian road law requires that every vehicle has a minimum policy corresponding to various factors. Although the minimum acceptable policy is set as such for a reason, it’s much more ideal to go far beyond the bare minimum because baseline policies aren’t enough to provide additional forms of protection, such as:

  1. Property damage coverage
  2. Third-party liability coverage
  3. Statutory accident benefits coverage
  4. Direct compensation
  5. Uninsured automobile coverage


At this point, you now know that buying an auto insurance policy is not as straightforward as it used to be. With hundreds of available products and far too much jargon, it’s important to be mindful of the right considerations you need to watch out for. Through this guide’s help, you can ensure that you end up making the right decisions moving forward!

At Direct-Line Insurance, we take immense pride in being one of the top vendors for Canadian direct auto insurance in Alberta. If you’re looking to protect your car as best as possible in the long run, schedule a consultation with our experts ASAP!