Auto insurance is often misunderstood, even by those who have maintained auto insurance their entire adult lives. Here are some not-so-well-known statistics and interesting facts about car insurance.
Auto insurance is required by law in all ten Canadian provinces.
Although minimum insurance limits vary from province to province, it is illegal to drive your vehicle without insurance no matter where you are. Believe it or not, even being under insured can result in a ticket or worse, a lawsuit.
Auto insurance premiums start to go down substantially after a driver turns25.
Statistics have shown that drivers under the age of 25 are more prone to be involved in accidents and violations. In fact, 16-19 year old drivers are 3 times more likely to receive speeding violations and to be involved in auto-related fatalities.
The most common auto insurance claims are:
- Fender benders
- Hail damage
- Windshield damage
- Back injuries
- Animal collision
On average, a driver will have an accident claim once every 17.9 years.
Low-risk and low-profile vehicles cost less to insure.
Cars that are safer and vehicles that are less likely to be stolen will end up saving you money on insurance.
Auto Insurance is a tax deductible for business use.
Keep track of your mileage so you can determine the amount of time you use your car solely for business purposes. For example, if you use it 40% of the time, then 40% of your auto insurance may be deductible.
Red cars, it’s a myth!
You may have heard that the color of your car affects the price of your insurance. This is 100% a myth. Pick a color, any color—it won’t affect your insurance!
Auto Insurance may not cover theft.
Your car insurance may not cover theft of items from inside your car. You will need property insurance (renters, home or condo) to be sure those items are covered if they’re stolen. Read your auto policy; make sure you know your coverage.
Save by paying in full.
Paying for your auto insurance month to month can include additional administrative fees. When you pay in full for six months or more, you can save a substantial amount versus paying in installments each month.
Shopping around for the best rate is worth it.
Insurance companies now use a long list of criteria to determine what your rate will be. It will always be worth your time to check annually if there is a better deal from a competitor.
Shopping for auto insurance may seem boring and tedious, but making sure you have the right coverage will come in handy if you’re in an accident. If you’re looking to compare auto insurance policies in Canada, we hope you’ll take a look at what Nuera has to offer.