Car insurance is one of those bills most of us pay for years without really digging into the details. The language can feel technical, the rules shift by province, and the fine print only matters when something goes wrong. That gap is where car insurance myths grow: advice from friends, family, or social media that sounds reasonable but quietly costs you money. We look at common car insurance myths and facts Ontario drivers still mix up, and we show how coverage really works so you know what matters on your policy.
My Accident Disappears When I Replace My Car
Many drivers assume an accident is “wiped clean” once they sell or trade in the damaged car, but insurers link crashes to the person, not the vehicle. An at-fault accident can stay on your record for 10 years and will still be factored into the price of your next policy, no matter what you drive. A different car might change your theft or repair costs, but it will not erase past claims, and a single serious accident can influence every quote you get until it finally drops off your record.
Paying a Ticket Removes It From My Record
Paying a traffic ticket settles the bill, not the record. The conviction remains on your driving history for 3 years, and insurers see it when they check your abstract. This is one of the car insurance myths that catches drivers off guard. One minor speeding ticket (even with no points) can nudge your premium up at renewal. A pattern of tickets in a short span can have a bigger effect and may put you in a higher-risk tier, even if you have never filed a claim. It takes time and clean driving to undo that impact.
If Someone Else Crashes My Car, Their Insurance Pays
If someone else crashes your car, the claim typically lands on your policy as the owner. This is one of the car insurance myths and facts drivers often get wrong. An at-fault collision caused by a friend or family member can stay on your file for years, raising your premiums and, if it happens more than once, pushing you toward a high-risk insurer with much higher rates. Treat your keys carefully: limit them to people you trust behind the wheel, and make sure anyone in your household who drives the car regularly is listed on the policy so the company cannot say you hid a regular driver.
“Full Coverage” Covers Everything Automatically
When people say, “full coverage,” they usually mean they carry Collision and Comprehensive. Collision pays when you hit another vehicle or object, and Comprehensive covers losses like fire, theft and vandalism. Neither covers personal items like a laptop stolen from your backseat, and neither automatically pays for a rental car, so you need endorsements such as OPCF 20 for Loss of Use. Starting July 1, 2026,
Ontario’s Statutory Accident Benefits Schedule (SABS) will change how accident benefits work: medical, rehabilitation, and attendant care will stay mandatory, while others, like income replacement, become optional. If you already have a policy, your renewal will generally carry forward your existing accident benefits and limits unless you choose to change them, so review your options instead of assuming they stay the same.
Red Cars Cost More to Insure
The idea that red cars cost more to insure is a common red car insurance myth. Insurers do not rate your car by colour and usually do not even ask for it. They use the Vehicle Identification Number (VIN) to identify the exact make and model, then look at data on theft, repair costs, and safety, often using tools like the CLEAR rating system. CLEAR stands for Canadian Loss Experience Automobile Rating. It helps insurers compare vehicles using real claims history for that specific model. A plain grey SUV that is stolen often and is expensive to fix can cost more to insure than a bright red car that is safer and cheaper to repair. Understanding the red car insurance myth makes it easier to focus on models with better risk profiles instead of worrying about the paint.
My Rate Stays the Same When I Move
Postal code plays a big role in how insurers price your premium, so moving to a higher-traffic or higher-theft area can raise your rate quickly. Tell your insurer as soon as you change addresses. If you do not, they may rate your policy for the wrong location and treat it as an unreported material change in risk. That can trigger extra investigation and lead to claim complications, including reduced or denied coverage, depending on the circumstances.
My Credit Score Can Lower My Auto Insurance Rate in Ontario
You may see ads or hear advice that improving your credit will lower your car insurance. That may be true in other places, but it does not apply to auto insurance pricing in Ontario. This is a clear example of car insurance myths and reality. Insurers set rates using factors tied to driving and vehicle risk, such as your driving record, claims history, the vehicle’s risk profile (including CLEAR-related data), how many kilometers you drive, and your postal code. A strong credit score still helps with things like car loans and home insurance, but it will not reduce your auto premium.
Shopping Around for Quotes Will Hurt My Record
Some drivers worry that getting multiple quotes will “flag” them and push their rates up. That is not how it works. Asking brokers or insurers for quotes does not appear on your driving record and does not affect your premium. Only things like claims and convictions move your rate. Shopping with accurate information is one of the few ways to lower your costs without changing your driving overnight.
Car insurance should not feel like a guessing game. If you are not sure how your policy would respond in a real claim, it is time for a quick review. At Keller & Associates Insurance Brokers, we walk through your coverage in plain language and then shop our insurance partners for options that fit how you actually drive and what you want to spend. If you are in St. Catharines, the Niagara Region, or anywhere in Ontario, contact us or request a quote in seconds, and we will help you bridge car insurance myths and reality before your next renewal.