We have all heard rumours about what will raise or lower insurance rates depending on what car you buy. Rather than calling an insurance agent, we just take these myths for a fact. If you find a car in your price range and the insurance is acceptable, who cares, right? Well, a lot of these myths are actually false, meaning you could have more freedom in your choice of car. Some variables can make a difference even though you have never heard of them. When you are getting new car insurance, you should know everything you can so you are not surprised.

The colour of your car can affect your insurance.

One of the most popular myths is that red or yellow cars have higher insurance because they are associated with speed. Next time you are talking to your insurance agent, though, you will notice something. When assessing a car, your agent will ask for the year, make, model, and trim. Alternatively, they may ask for the vehicle identification number (VIN) which contains all these variables. All of these factors determine how your car performs and the risk insurance would be taking on you. 
The agent will not ask for the colour though, and the VIN does not contain the colour code. While engine size makes a notable difference, the colour of your car is purely aesthetic. The myth stems from the idea that vivid, fiery colours encourage reckless driving. Another misconception is that brake lights are harder to see on red cars. In reality, you can choose whatever colour you want and it will not make any difference.

The more expensive the car, the more expensive the insurance.

This myth is a little misconceiving. On a large scale, this is true. A car as expensive as a BMW will cost more than a simple Toyota as it has a stronger engine and will cost more to repair. This in turn will make the insurance higher. When there is a difference of tens of thousands of dollars, insurance will absolutely be higher for the more expensive car.
When comparing certain car models though, or trims of a certain model, this myth can be false. In addition to the price tag is the likelihood of something happening to your car while you are not in it. Honda and Toyota were two of the most stolen vehicle brands in Toronto last year, with Ford’s F Series trucks being the most stolen across Canada. When comparing models and trims, a slightly more expensive model could have features that bring insurance down. A car with a better alarm system could actually lower insurance. Cars with a GPS tracker can lower insurance even further. Paying a little extra for better security will actually make it cheaper in the future.

2 door coupes cost more than 4 door sedans.

Again, this myth has a bit of a grey area. A 2 door coupe is usually a defining feature of a sporty, high-performance car. In many cases, coupes are marketed towards drivers with a desire for more ‘spirited’ driving. This is why American muscle cars are almost always coupes. Ultimately, this results in a higher average insurance across all car makes and models.

Similar to the colour of your car, though, aesthetics are not a focus of insurance companies. While Mustangs and Corvettes have high-performance engines, the difference between a coupe and a sedan of the same car is minimal. The two options often have the same engine and features. When conducting a personal comparison of two 2018 Honda Civic EX-Ts on insurance, the coupe actually cost less to insure than the sedan. This could stem from a variety of factors including availability and cost of parts, or how easy a car is to fix. The same is true for a variety of economy level two door cars but should be verified by an insurance agent first. 

Loyalty discounts are the largest factor in cheap insurance.

Large insurance companies would love for you to believe this, but it is far from the truth. Loyalty discounts are applied to insurance policies after a customer hits various milestones in patronage. With time, loyalty discounts can bring your yearly rate down hundreds of dollars. This does not mean you have the best price, though, even after decades of loyalty.

The way automotive insurance rates in Ontario are determined is simple; an insurance company decides exactly how much they charge for each variable, and presents these prices to the provincial government. After analyzing this proposal, The Government then either approves or rejects the proposal by the insurance company. If approved, this is the exact price the insurance company has to offer with no room for haggling.

This might sound like every policy should be the same, companies are allowed to propose whatever price they desire. There is a minimum price to ensure every driver is protected, but anything above that cost is variable. While your insurance company may have proposed a certain number, a rival company may have proposed a lower number. These base costs differ enough that you could find a better policy with another company, despite a loyalty discount. 

Men always pay more on insurance than women.

This myth is true, but only for a certain time. Young drivers, 16-25, will notice a difference on insurance rates. A young male would have higher monthly rates than a young female. This is based largely on research that finds young men have a higher likelihood of driving aggressively than young women. As new drivers, young men and women have no personal driving records to dispute this data on an individual basis. Insurance companies charge higher rates, but often have discounts for good grades, among others
Once a person turns 25, though, this difference can be low enough that gender may be irrelevant on your policy. At this point, a driver has up to 9 years of driving experience, something that beats general research. An insurance company can look at that record and create a policy tailored to an individual. Rather than gender, insurance companies look at how many tickets or accidents you have been in.
Maybe you’re looking for a new car, or maybe you’re just looking around for a better insurance rate. All In All Insurance offers competitive rates for your auto insurance and will take into account anything that can get you a better price. We know how important it is to get a car you will enjoy and feel comfortable in, and cost shouldn’t keep you from that. Our team of professionals will make sure you are satisfied with your policy.
We also offer property, life, and business insurance plans. You can call us at 416-504-0990, or use our quote form to make an appointment to meet with us at our Vaughan office. You can also follow us on social media to keep up to date on what the AiA team is up to. We look forward to creating your ideal insurance policy.
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