Making assumptions about car insurance and the coverage it provides can be a very expensive mistake. Despite this, people frequently make some very common assumptions. One of the most common assumptions that lead to non-insurance without the policyholder even realizing it occurs when they buy a new car. Many policyholders assume they are covered automatically for a thirty day period when they purchase any new vehicle and the cover is applicable to any of the individuals covered under the existing policy. This is not necessarily true.
To make sure exactly what is covered one has to read the fine print of the insurance policy. A majority of the car insurance companies require that they be informed within a certain time period and it isn’t necessarily thirty days. A son or daughter living in the same house as the policyholder may be covered for an existing car, but if they go out and purchase a new one, chances are this new vehicle will not be covered.
Lending one’s car to a friend who has their own insurance policy and assuming that their insurance will cover it if they are in an accident couldn’t be further from the truth. If one holds an insurance policy that covers people operating one’s car with their permission, then it is their insurance company that foots the bill. This, in turn, can translate into higher premiums for the policyholder in addition to the crash going on their record.
Assuming that one’s credit score has nothing to do with auto insurance is absolutely incorrect. In fact, most insurance companies now make credit checks and use credit scores in their mathematical models for calculating insurance premiums. It is not uncommon to see people with a lower credit score end up paying high car insurance premiums, while those with high score have the benefit of enjoying lower premiums.
Another assumption is that if one gets hit with hail or has a run in with an animal, they are covered under collision insurance. After all, if one is hit, it is a collision. Wrong again – in the insurance world collision insurance only covers for damage caused if one hits another vehicle or an object like a gate or post. It does not cover for vandalism, hail or animal accidents; one will have to purchase a comprehensive insurance policy for that.
Another very common assumption is that male drivers under 25 years get the shaft when it comes to car insurance rates as compared to everyone else. While it is a commonly known fact that male drivers under twenty five years pay more for car insurance as compared to female drivers in the same age group, they certainly do not pay more than teen drivers or senior drivers. This is provided their driving record is not absolutely horrible.
Sometimes people find out about how wrong their assumptions are only when it is too late and they end up paying a hefty price for their erroneous notions. Review your auto insurance policy carefully and get maximum information from your insurance agent or broker.
Canadians take pride in the good and bad things about their homeland: hockey, vast stretches of empty land, wildlife, and so on. They also are happy to fess up to behaviors that are not necessarily admirable. This is especially true of Canadian drivers, who are notoriously careless on the road. Recent 
Although each province and territory maintains its own laws regarding auto insurance, some type of coverage is mandatory regardless of where you live. You must at least have third-party liability coverage if you plan to drive. The required minimum varies by province.
As you’re likely aware, there are several types of coverages available, and each addresses different circumstances. Some are compulsory while others are sold as endorsements (i.e. they are optional). For example, we mentioned earlier that third-party liability is mandatory throughout Canada. You must have this type of coverage if you plan to drive. It pays for property damage and medical care for injuries stemming from an accident for which you are at fault.
If you are a college student, you aren’t going to have a ton of money laying around. There are a ton of things to pay for just to live day to day, and you have to pay for books and other college expenses. Combine that with the fact there is little time to earn money through a job, and it is easy to see why a college student wouldn’t have much money for car insurance. However, there are still ways you can get an affordable policy as a college student.
