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(NC)-When it comes to auto insurance, many Canadians are not sure what's fact or fiction. To help you better understand auto insurance, RBC Insurance® debunks the top five auto insurance myths.
1. The colour of my car affects my insurance premium.
Many factors determine premiums including your vehicle's year, make, model, body type and engine size. The colour of your vehicle is not one of them.
2. If I use my car for work and have an accident, my employer's insurance will cover it.
Your employer may reimburse you for mileage, but your own insurance provides coverage in case of an accident. If you use your vehicle for work, you should be advising your agent or broker of this business use.
3. Parking tickets increase insurance premiums.
Parking tickets do not affect insurance premiums. But a license suspension from unpaid fines can affect your driving record, resulting in higher insurance premiums.
4. If my friend borrows my car and has an accident, their insurance will pay for damages.
If you lend your car, you lend your insurance. Any claims will be made under your policy, even if you were not involved in the accident.
5. Auto insurance companies can charge what they want.
Auto insurance is subject to significant regulatory requirements. Insurance companies must submit their automobile insurance rates to government agencies for approval.
For more information, visit RBC General Insurance Company of Canada at rbcinsurance.com/online or call 1-800-769-2526.