Auto insurance is full of misconceptions that can lead drivers to make costly mistakes. Whether it’s assuming red cars cost more to insure or believing your policy covers everything, misinformation can leave you under-protected or overpaying. Let’s separate fact from fiction and debunk some of the most common auto insurance myths.

Myth #1: Red Cars Cost More to Insure

One of the most persistent myths is that owning a red car means higher insurance premiums. Insurance companies don’t care about the colour of your car. What actually affects your rates includes:

• The make, model, and year of the vehicle
• Your driving record and claims history
• Where you live and park your car
• The type of coverage you choose

So, if you’ve been holding back on getting that red sports car because you’re worried about insurance, rest assured—the colour won’t make a difference!

Myth #2: Your Personal Auto Insurance Covers Business Use

If you use your vehicle for business purposes—like delivering food, driving for a rideshare service, or visiting clients—your personal auto insurance may not provide coverage. Most personal policies exclude commercial use, meaning you could be left paying out of pocket for any damages. If you use your car for work, talk to your insurance provider about business-use coverage to ensure you’re protected.

Myth #3: Minimum Coverage Is Enough

In Ontario, the minimum liability limit required by law is $200,000.  Saving money with minimal insurance might seem like a good idea, but what happens if there’s a major accident.What if you are responsible for a crash and seriously injure someone? $200,000 may not be enough and you would be personally responsible for any damages in excess of this limit from your own personal assets.  Talk to your insurance broker to explore your options.

Myth #4: Older Drivers Always Pay More

It’s true that young, inexperienced drivers often pay higher premiums, but older drivers don’t automatically face rate hikes. Many insurance companies offer discounts for mature drivers, especially those with clean records and defensive driving course certifications. Factors like driving habits and claims history play a bigger role in determining rates than just age alone.

Final Thoughts: Know the Facts, Save Money

Misconceptions about auto insurance can lead to unexpected costs and coverage gaps. Understanding the facts may help you make better decisions and even save money. However, every policy is different—speak with your insurance broker to ensure you have the right coverage for your needs.

Have questions about your auto insurance? Our brokers are here to help! Contact us at 905-830-9000 to review your policy and ensure you’re fully protected.

Disclaimer:

At ICD Insurance, we aim to provide accurate, up-to-date information. However, insurance needs vary, and coverage depends on specific policies, locations, and providers. This content is for general information only and may not fully apply to your situation. Please contact your ICD Insurance broker to discuss your specific needs and coverage.