Insurance Fact and Fiction

Insurance is something that can save drivers a few good dollars a year, but it can also go through its fair share of ups and downs. It is a good idea to know the difference between the facts and the made up stories to keep premiums low.

Speeding may get you there quicker, but you are going to pay. Not all speeding tickets raise insurance rates, but it can and does happen. It is the type of ticket that you receive and the driving record that makes all the difference to insurance companies.

Speeding that is 49 miles per hour or less over the speed limit can cause your rates to increase, but only minimally. It is the speeding that takes you over the limit by 50 mph or more that can cause you some distress.

When in an accident the insurance company makes the final call on whose fault it was. The police may say that a driver is not to blame, but that does not mean that the insurance company will say the same. In this case, the rates may go up and the “at fault” driver will pay the deductible.

If the glove box is holding little white slips of paper known as parking tickets, then the insurance rate is going to increase. This is not true one bit. The police may come knocking, but parking tickets will never be seen on a driving record or used to increase the insurance costs.

If an accident occurs, then filing a claim with an insurance company is a good idea. It may raise rates, but even if a driver fails to do this, the others involved in an accident may contact their providers and eventually that can lead back to you.

A red car means that the insurance is higher. No, that is not the case. Insurance rates look at make and model and they do not even care about two door vehicles versus four door vehicles. It is the history of the car plus the price for repairs and if it has a high theft rate that providers are looking at when they determine costs.

Small claims for accidents mean just as must as the larger ones do. An accident can affect every aspect of driving including the driving record and insurance costs. Just be safe and the costs should remain reasonable.

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About the Author:
Antoine Belanger works as an auto insurance consultant and is an expert on insurance bureau of Canada, the agency responsible for Canadian insurance laws. He also provides online car insurance quote.