A recent survey conducted on behalf of the Groupement des assureurs revealed that some persistent myths about car insurance remain. Are you an informed driver?
The Colour of my Car Plays a Role in my Insurance Cost
While one in five (21%) still believe that the color of the car will play a role in the amount of their premium, this is not true.
Instead, other criteria will determine the amount of your insurance premium, including, for example, the model's theft statistics, your driving record or where you park your vehicle (your place of residence), not to mention each insurer's actuarial calculations and the various discounts you may get based on your other insurance policies, your choice of deductible or your type of driving.
Regardless of who was at Fault in the Accident, I Still Have to Pay the Deductible Indicated on my Car Insurance Contract
44% of drivers believe that they will always have to pay the deductible specified in their policy, regardless of how the claim produced itself.
In reality, the insurer takes fault into account. In most cases, fault is determined based on the Direct Compensation Agreement (DCA) containing the various accident scenarios.
Under this framework, in the case of a not-at-fault collision, the insurer will compensate you even if you have no coverage for the collision and without you having to pay a deductible.
Conversely, if you are at fault for the accident, you will be compensated only if your policy covers the collision and you will have to pay the deductible; these restrictions will also apply if the Direct Compensation Agreement does not apply (for example, if the other vehicle involved in the accident is registered outside Quebec or if the third party does not have insurance).
I'm not Insured for Collisions, so There's No Point in Reporting Because I won't be Compensated
42% of drivers are unaware that their insurer considers their fault in a collision when determining how to compensate them. Worse, 69% do not know that their auto insurance policy covers them for a not-at-fault collision, even if they do not have coverage for damage to their vehicle!
However, if the insured is not at fault, the insurer will compensate them for all the material damage to their car even if they are not insured for the collision; whereas if the insured is at fault for the damage, the insurer will compensate them based on the coverage provided in their contract only.
However, the "no fault" rule has applied to bodily injuries since 1978: in the case of physical injuries, you are compensated by the SAAQ regardless of your fault, even if the accident occurred outside Quebec.
At any time, if you are not sure, do not hesitate to contact your broker: they will guide you the best solution to meet your unique needs.