Rumors abound in the insurance business, which we are well aware of as insurance brokers. Insurance is complicated, indeed, and due to that it is also widely misunderstood. That’s why insurance brokers are your ally when it comes to your coverage. We are an independent third party, accredited through the Independent Insurance Brokers Association of Alberta, whose job is to work for you, not the insurance agencies. We can help you find the best coverage available for the lowest price, as we have access to dozens of policies from Canada’s best providers, which allows us to shop around for you to find exactly what you need. As we are not affiliated with any particular provider, we are able to freely discuss the pluses and minuses of each policy, as well as explain the terms, so the transaction is as transparent as possible.
Car insurance is not the most complicated type of policy that we offer at Lane’s, but it does seem to be the one that generates the most confusion and misinformation. We hear a lot of unusual speculation when we speak with clients looking in to their car insurance options. These are a few of the more common car insurance myths we hear, which are misleading and should be ignored when heard.
Myth #1: I Have to Purchase Collision Insurance
Often when we ask for a quote on car insurance, it’s an all-or-nothing proposition. Many times companies will automatically include collision insurance, whether or not you think you need it. Generally speaking, collision insurance is not something we would normally advise leaving off of your policy, as the high value of vehicles these days means the expense involved with body work makes paying out-of-pocket for repairs simply impossible for most. Even the smallest dent or ding can cost thousands to fix, which can leave just about anyone in dire financial straits.
However, there can be a case made for some to omit collision insurance. Those whose vehicles are of low value and who are unlikely to want to pay for extensive repairs after an accident, and who would likely just scrap their automobile, can consider comprehensive-only coverage.
Myth #2: If I’m Hurt in a Collision, My Provincial Benefits Will Pay for My Treatment
Interestingly, car insurance companies actually pay more for medical rehabilitation costs than government health insurance plans, workers’ compensation plans and private health-care plans combined, reports the Insurance Bureau of Canada. This is one reason why car insurance premiums can seem so high. Every year, insurance companies pay about $2 billion to help rehabilitate injured Canadians through the accident benefits portion of car insurance policies.
Myth #3: Glass Coverage is Mandatory
You do have the option of waiving your glass coverage through what’s known as a 13D endorsement. However, if you choose to do so, be aware that you will be on the hook for the full cost of any necessary glass repairs your vehicle may need. Given the amount of gravel that is put down in Alberta each winter to help with traction on icy roads, chipped and cracked windshields are common. And it doesn’t take much to require a full windshield replacement. Any crack longer than 3 inches in length or any chip larger than a one inch in diameter can’t be fixed, and new windshields are expensive. Glass coverage can alleviate some of this cost. Don’t forget that your windshield plays an important part in the structural integrity of your vehicle. It also helps improve visibility to help avoid accidents.
Myth #4: The Colour of My Vehicle Makes a Difference in my Car Insurance Premiums
We have often heard the old adage, “Red cars are more expensive to insure,” but this is actually not true. The colour of your vehicle makes no difference to your car insurance premiums. What does make a difference, however, is the type of vehicle that you drive. If your vehicle is a target for thieves, your insurance premiums will be more than if it is not. For example, in Alberta the Ford F-series of trucks built from about 2003 to 2006 is highly sought after by car prowlers.
Myth #5: If an Accident Isn’t My Fault I Don’t Have to Pay the Deductible
Even if you were doing absolutely nothing and another driver hits you, paying your deductible is mandatory for the claims process. A deductible is what you agree to pay towards a claim filed due to loss or damage, and they exist to help deter unnecessary claims.
Myth#6: Insurance Brokers Make Money Off of Premiums
Insurance brokers actually make no money off of premiums. How we stay in business is by earning a small dividend off of each policy we sell. We have a large selection available that, through our relationship with the supplier, we have been provided access to. When we are able to properly match a client with the right policy, we receive a small percentage from the insurance company for having “brokered” the deal.
Some also think that brokers just procure customers for insurance companies, and as soon as you sign on the dotted line they are out of the picture. This is simply not true. We are available at all times to answer your questions, help you through the claims process and advocate on your behalf.
Contact Lane’s for Home, Auto and Commercial Insurance Coverage in Alberta
At Lane’s, we don’t make you fill out long and complicated forms in order for you to receive a quote. If you are looking to explore your options for car insurance coverage, just give us a call at our Calgary, Edmonton, Banff or Alberta-wide offices. We are happy to help!