Top 5 Car Insurance Myths, Debunked

Have you ever heard that red cars cost more to insure? Or that a parking ticket can hike up your premiums? With so much misinformation out there, it’s no wonder car insurance can feel confusing and overwhelming. In this article, we’ll break down some of the most common car insurance myths, helping you separate fact from fiction so you can make smarter, more confident decisions about your coverage.

Myth #1: Red cars are more expensive to insure

✅ Reality: The colour of your car has no impact on your insurance premium.

This long-standing myth continues to circulate among drivers. Despite what you may have heard, insurance companies don’t consider your car’s colour when calculating your rate. What they do care about, however, are more practical factors, such as the car’s make, model, year, engine type, and your driving record. While a flashy red car might catch more attention on the road, it's the type of vehicle—not its colour—that influences your insurance costs.

The cheapest cars to insure

Myth #2: Parking tickets raise your insurance rates

✅ Reality: Getting a parking ticket won’t affect your insurance premium.  

While it's a common misconception, parking violations like expired meters or parking in a no-stopping zone aren’t used to calculate your premium. Insurance companies focus on risk-related behaviours behind the wheel, such as speeding, distracted driving, or DUIs. That said, unpaid parking tickets can still cause issues—like delays in renewing your license plate—and fines can add up quickly, so it’s best to avoid them altogether.

Myth #3: Older cars don’t need insurance

✅ Reality: No matter how old your car is, you’re still legally required to carry a minimum level of auto insurance coverage in Canada. 

Some drivers assume that if their car isn’t worth much, insurance isn’t necessary—but that’s not the case. While each region has its own rules, all provinces require drivers to maintain a minimum level of coverage to stay road legal. While comprehensive or collision insurance may not make financial sense for older vehicles—especially if potential repair costs outweigh the vehicle’s value—liability protection is still essential. Older cars can also lack modern safety features, making adequate coverage even more important.

Myth #4: Insurance follows the driver, not the car

✅ Reality: In most cases, insurance coverage follows the car—not the person driving it.

If you lend your car to a friend and they get into an accident, it’s likely that your insurance policy—not theirs—will be responsible for the claim. While they may be a safe driver, you’re still taking on risk by handing over the keys. Provincial rules can vary, so it’s always a good idea to review your policy and know exactly what’s covered before lending your vehicle. Bottom line: If your car is involved, your coverage could be too.

Myth #5: Your credit score doesn’t impact insurance premiums 

✅ Reality: In some provinces, insurers may use your credit score to help determine your premium. 

While it's a common belief that credit scores don't influence car insurance rates, the reality varies across Canada. Ontario and Newfoundland and Labrador have banned the use of credit scores in setting auto insurance premiums. In other provinces, insurers may request to check your credit score as part of their risk assessment, but they must obtain your explicit consent. Importantly, you can refuse this request without facing denial of coverage or policy cancellation. 

More car insurance myths—busted 

Think you’ve heard them all? These additional car insurance myths catch more people off guard than you might expect. 

How misinformation could be costing you money

Believing common car insurance myths doesn’t just create confusion—it can lead to costly consequences. Whether it’s being underinsured, overpaying for unnecessary coverage, or facing surprises at claim time, misinformation can leave you unprepared when it matters most.

Now that you’ve started to separate fact from fiction, take a moment to reevaluate your current auto insurance policy. The right insurance partner—like Surex—can help you cut through the noise and make confident, informed choices about your coverage.

Find the best car insurance rates today.