When it comes to insurance, there can be a lot of misinformation floating around about what is and isn’t covered. We’re here to help clarify things for you. Below is a list of some of the most common myths about insurance, and the truths behind them.
Myth: All traffic infractions will increase my rate
FACT: It depends on the type of infraction and number of traffic convictions, combined with other rating factors, as to whether or not your insurance premium will be affected. Serious charges, such as speeding and distracted driving, will result in penalties. But parking tickets, for example, don’t appear on your driver’s abstract and won’t affect your insurance rate.
Myth: Red vehicles are more expensive to insure
FACT: The price of your auto policy is based on factors such as the make, model, body type, engine size, age of the vehicle, and where the vehicle is located (rural/urban, density of nearby roads, crime, etc.). The colour of your vehicle, however, is not one of those factors.
Myth: The most common property claim is for fire damage
FACT: Actually, you’re more likely to have damage from a water or sewer backup problem than a fire. Approximately 60% of claims are water-related. Even if you don’t live near a river or a lake, heavy rainfall can cause damage in urban and rural communities.
Myth: My home insurance covers all my work-related property while I remotely work from home.
FACT: This is a common myth. You do have ‘some’ coverage, but, it is very limited. Please talk to your broker about this to be sure you are in fact covered.
Myth: My unlicensed car is covered under my property insurance policy when I store it in the garage
FACT: When it comes to storing your unlicensed vehicle in your garage, you are not covered under your home insurance policy...the same is true for your collection of car parts. These would both need to be listed under your personal policy.