If you are a new driver in Canada, you're probably also new to the auto insurance world. Our team wrote this article to separate car insurance myths from reality and help you understand it better.
Myth: Red Cars Cost More to Insure
Colour doesn’t count. Vehicle colour isn't a factor in Ontario when pricing auto insurance. Insurers will consider many other vehicle-related factors such as the specific year, make, model and trim.
Myth: Comprehensive Insurance Covers Every Kind of Damage
Read More: See How Comprehensive Car Insurance Works in Ontario
Comprehensive car insurance helps you pay for non-collision-related damage, such as theft, vandalism, weather-related damage and falling objects. But don’t assume comprehensive auto insurance will pay for any type of damage. Comprehensive coverage depends on your policy’s terms, conditions, exclusions and deductible.
Myth: People Living in Areas With More People Pay More for Car Insurance
The place you live, specifically where you keep your car, is a rating factor used by auto insurers in Ontario. Claim severity, claim frequency, crime, weather, traffic and other factors can affect insurance rates in some areas more than others. But you can’t just look at how many people live in an area and assume residents are penalized or rewarded because of it.
Myth: Your Auto Insurance Premiums Go Up or Down When You Turn 25 or 70
Ontario drivers can't expect their car insurance premiums to automatically go up or down at a set age. Insurers may use age as a rating factor alongside driving record, experience, annual kilometres and other criteria to assess risk.
Myth: If You Are Driving Someone Else’s Car and Cause an Accident, Your Own Car Insurance Pays for Damages
If you have permission to drive the car, the vehicle owner’s auto insurance policy would normally pay a claim if you caused an accident while driving. However, the owner’s insurance might not cover damages depending on whether:
- You were permitted to use the car.
- You’re an excluded driver on the owner’s insurance policy.
- You’re a regular operator of the owner’s car but weren’t reported to the insurer.
- You’re using the vehicle for an activity that isn’t allowed under the insurance policy.
Myth: Parking Tickets Affect Your Car Insurance Rates
A typical parking ticket does not count as a conviction and won’t affect your car insurance rate, since parking tickets aren’t considered moving violations. When it's time to renew your car’s permits, unpaid tickets can complicate the process.
Read More: Do Parking Tickets Affect Car Insurance Rates?
Myth: Ontario Has Gotten Rid of All Traffic Cameras, so You Don’t Have to Worry About Your Insurance Rates if You Receive a Speeding Ticket From a Camera
Ontario banned automated speed-enforcement (ASE) cameras, also known as speeding cameras, in municipalities on November 14, 2025. Red-light cameras operate under a separate program.
Tickets issued by traffic cameras don’t specify who was driving, so insurers can’t link them to a specific Ontario driver. However, if police issue you with a speeding ticket for going over the posted limit, insurers can consider speeding convictions when calculating premiums, subject to the insurer’s approved rules.
Myth: You Don’t Have to Tell Your Insurer About an Accident Unless You’re Planning to Make a Claim
Simply asking about an accident is not the same as making a claim. However, you still need to report an accident when your policy requires it. FSRA’s current OAP 1 requires written notice within seven days, when reasonably possible.
Coverage Options, Discounts and Insurance Bundling
Discounts vary by insurer. Ask about the specific eligibility and premium effect of any multi-vehicle, multi-policy, approved anti-theft, winter-tire, usage-based or low-kilometre option available for your policy.
Compare the total annual premium and coverage after every discount. A label such as “bundle” does not establish that one quote is cheaper or better protected than another.
Insurer Size and Brand Recognition
Some people assume that name-brand auto insurance companies will be less expensive, but this isn’t necessarily true. An insurer’s operational costs can be higher or lower than others. Reputable auto insurance companies should be able to cover claims adequately, but it’s a myth that the largest or most popular insurer will be the cheapest.