With over 40 years of experience insuring drivers in Newfoundland and Labrador we’ve heard every myth and misconception there is about getting auto insurance, so we compiled our Top 5 Auto Insurance Myths. And while we wish we could take things to extremes, like these guys, we’re stuck with keeping our vehicles intact!
Here are a few more auto insurance myths from our friends at the Insurance Bureau of Canada:
MYTH: If I’m injured in an auto collision, my medical expenses are paid for by the provincial or territorial government’s health care plan.
FACT: Auto insurers pay more for medical rehabilitation costs in Canada than government health insurance plans, workers’ compensation plans and private health-care plans combined. Every year, insurers pay at least $2 billion for the medical rehabilitation of injured Canadians. Insurers pay through the accident benefits portion of auto insurance policies, the tort system and health care levies.
MYTH: Only insurance companies pay for high or excessive legal settlements.
FACT: Insurance companies collect premiums from consumers and use these funds to pay for claims. Money to pay for large legal settlements comes directly from these funds, or directly from the pockets of each and every policyholder. If the cost of claims increases, insurers need to adjust the premiums to keep pace.
MYTH: Insurance companies keep changing the rules on what is and isn’t covered.
FACT: Auto insurance is highly regulated by provincial and territorial governments who set minimum coverage levels. Insurance companies cannot change basic coverage or premiums without government approval.
MYTH: Being caught driving without wearing a seatbelt doesn’t make me a dangerous driver, so my insurance premiums shouldn’t go up.
FACT: While you do not pose a danger to other drivers when you don’t wear a seatbelt, you do pose a serious hazard to yourself. If you are in a collision when you are not wearing a seatbelt, you are much more likely to sustain injuries. Your insurance company pays your medical expenses. The cost of the rehabilitative care for a whiplash-type injury is lower than the cost of treatment for injuries sustained as a result of being thrown out of a car during a collision. This is why your insurance premiums may increase if you are convicted of driving without a seatbelt.
Still have questions? Is there an auto insurance myth you’d like busted? Check out our list of Frequently Asked Questions or drop us a line and we’d be happy to chat.