“We’re in the business of saving people money; but, since we’re not an insurance company we can’t set the rates. All we can do is educate people and encourage them to make informed decisions.”
Toronto, Ontario (PRWEB) June 16, 2011
Most people only care about their auto insurance when it’s either renewal time and they get sticker shock after seeing the new annual premium or when they have to make a claim. As a result, there are some very common misconceptions that have run rampant for years. InsuranceHotline.com hopes to set the record straight regarding these myths:
Myth #1: Red cars cost more to insure than any other colour. This is simply not true. In fact, insurance companies don’t even ask about car colour when calculating a quote. The make, model and year of a car impact rates; however, colour is a nonissue.
Myth #2: Higher premiums mean more coverage. FALSE. The truth is that the premium for a basic policy (e.g. mandatory coverage in Ontario) can vary by hundreds, or even thousands of dollars, without any difference in coverage. This is because each insurance company uses its own claims history for a particular car and driver profile to determine the rate charged, and there are significant discrepancies between the experiences of different companies.
Myth #3: No fault insurance means “it’s not my fault.” Not even close. No fault insurance simply means that each person deals directly with their own provider during the claims process. This could be one of the most expensive misunderstandings because fault is always determined and has a significant impact on insurance costs.
More information on these and other common insurance myths can be found here: http://www.InsuranceHotline.com/myths
“We’re in the business of saving people money; but, since we’re not an insurance company we can’t set the rates. All we can do is educate people and encourage them to make informed decisions.” Tammy Ezer, Marketing Director, InsuranceHotline.com. “There’s so much money left ‘on the table’ in the insurance space and we’re just trying to get some of that back into the hands of our consumers.”
It is important for consumers to stay informed and check for potential savings annually whenever their policy is up for renewal. The company that had the best rate for your car and driving profile last year may not be the one that can offer you the best rate today or even next year. Shop around to see if you could be saving money on your car insurance.
InsuranceHotline.com is a free online insurance rate comparison service that directs consumers to its large network of more than 30 insurance companies and licensed insurance professionals and provides quotes based on the lowest rates available through its network. In business since 1994, InsuranceHotline.com is not owned or operated by any part of the insurance industry; ensuring consumers get a truly unbiased quote. InsuranceHotline.com does not sell insurance, is not a licensed broker, and is not owned in whole or in part by an insurance company, agent or brokerage.