In the insurance industry there is something called Actuarial Science, which is the statistical and mathematical assessment of risk for any given type for insurance. This science becomes increasingly complex as insurers become aware of new and previously unknown risk-changing factors. The calculations that determine the premiums you pay for insurance is so complex that it is difficult or impossible to express in a conversation. As a result of this, insurance myths pop up all over the place about why you pay the premiums you pay. Here are 3 insurance myths you omight have heard of.
Myth: Newer Cars are a Target for Car Thieves
You might assume that your brand new shiny car is going to be a target for thieves, as do many other people. The reality is, car thieves are a bit smarter than that. They don’t go for the newest, shiniest cars for a variety of reasons: New cars are more likely to have security systems in place, they could also have gps tracking installed, or an advanced immobilizer. According to some statistics from the Insurance Bureau in Canada, the top 10 most stolen cars are cars that were produced between the around the years 1997 – 2006. Thieves know that new cars have newer theft-prevention technologies.
Myth: The Colour of the Vehicle Affects the Cost of Car Insurance
Many people believe that the colour can change the price of auto insurance, but in reality it would be incredibly difficult for insurance agents to justify why they would charge more for certain colours.
The truth is, it really doesn’t matter what colour your car is.
Myth: If your car is vandalized, stolen, or damaged, your insurance will cover it.
It is true that your insurance company will cover these types of damages, but only if you purchase comprehensive coverage. The law states that your only required to buy liability insurance, and seeing as how comprehensive insurance is much more expensive, pretty much everyone just gets liability insurance.