My employer’s insurance covers me when I use my car for work

Not true. Many companies require their employees to use their own personal vehicles for work purposes. You might be reimbursed for mileage costs—but don’t expect your employer to provide insurance coverage as well. Whether you’re driving your car for personal use or commercial use, the only insurance that will cover you in the event of an accident is your own. If you drive your own car for your delivery or courier job, it’s important to make sure that you’re properly insured while you’re on the job.

If my friend borrows my car and wrecks it, his insurance covers it

False. Your auto insurance applies to your vehicle—not the driver. That means, when you loan your car to a friend, you’re loaning him your auto insurance too. Before you loan your car to someone else, make sure you trust his driving—after all, if he gets into an accident while driving your vehicle, it’s your insurance premium that will be affected. Click here for more information.

No-fault insurance means that no one is at fault in a car accident

Not true. Having no-fault insurance doesn’t mean you cannot be found at fault for an accident. In fact, in any situation where two drivers are involved, insurance companies will always determine a driver is at fault. So what is no-fault insurance? If you have no-fault insurance, your insurance provider will provide coverage and handle your claim, regardless of which driver is at fault. If you are the at-fault driver, however, you can expect an increase upon renewal of your auto insurance policy.

If I am in a minor accident, it’s better to settle things with the other driver so my rates don’t go up

Not necessarily. It depends on the extent of the damage. According to the Insurance Bureau of Canada, you must notify your insurance provider as soon as possible about any accident that must, by law, be reported to police, or for which to intend to make a claim under the policy. In Alberta, total damages from both vehicles over $2,000 must be reported to the police.

In an effort to avoid an increase in insurance premiums, many drivers think it’s better to pay for the vehicle damage out-of-pocket rather than making an insurance claim.

But what if the actual cost of repairs turns out to be much higher than the original estimate you were prepared to pay? What if the other driver tries to blame you for damage that already existed? Or what if they try to hold you liable for personal injuries? Your insurance coverage will help to protect you against these possibilities.

If you’re in an accident in Alberta, other drivers involved have up to two years to file a claim against you. If you think you’ve settled things, you may find that it comes back to haunt you. At that point, it will be too late for your insurance provider to help you.

If I get a parking ticket, my insurance rates will go up

False. Parking tickets do not affect your driver’s license, driving record or insurance rates. However, you will not be able to get the renewal sticker for your license plate if you have unpaid parking tickets.

Clearly, auto insurance isn’t always straightforward. If you still have questions about your insurance policy, we recommend you speak to a licensed insurance advisor for clarification.