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5 Car Insurance Myths You Should Stop Believing


There are so many myths when it comes to comprehensive car insurance. We know it can be difficult to get your head around what’s real and what’s not. There’s so much info out there that, unsurprisingly, sometimes we’re tempted to simply go with the brand we’re most familiar with. Or, we pick the cheapest car insurance quote without really knowing how the policy differs to the more highly-priced ones.


Sound familiar?


It’s worth taking the time to understand what factors influence the insurance premium and the other policy elements. That PD Insurance post is to come, so watch out for it.


What we’ll focus on in this piece is the myths floating around insurance land, where policies differ from company to company. Read on to be worded up…



“The Colour of My Car Affects My Policy.”


The myth about car colour is one of the oldest myths about car insurance. It goes that cars with ‘loud’ colours (like red) are more likely to get stolen than cars with discreet colours, such as grey or white. Others say some car colours are more noticeable on the road so less likely to be involved in a crash.


Whatever the case, while all insurers factor a custom paint job into a premium (because they’ll be liable for replacing the whole car), when it comes to an off-the-showroom-floor paint job some of the best insurance companies – like PD Insurance – are colour blind. Across the industry in general, other factors are more important.


At PD, we calculate your rate based on factors such as driving record of the driver/s, car make and safety features. We also look at how much it will cost to repair or replace the car in the event of an accident.


Unlike many other insurers, we also provide a discount if you’re the only driver of your car. If you’re not already taking advantage of that then get on board! Maybe it’s time to stop sharing your wheel?



“My Insurance Will Cover Mechanical Repairs.”


Most new drivers fall into the trap of thinking their comprehensive car insurance will cover ongoing mechanical repairs and any breakdowns. The truth is, your insurance will most likely not cover mechanical failures and breakdowns that naturally go with owning a vehicle.


In fact, calling your insurer to make a claim that isn’t covered by your insurance can result in higher premiums over time. Make it a point to find a skilled mechanic you can trust and be sure to take your car in for regular services. Ongoing care and maintenance is important.


It also pays to learn how to do some basic repairs yourself as well as conducting simple upkeep such as doing a monthly oil check. A few minutes of time can make quite the difference.


And while you’re pondering car problems, remember you can add a roadside assist option to most comprehensive policies to cover breakdowns (at an additional cost). Your choice.



“Thieves Only Steal New Cars So I Don’t Need Insurance.”


A misconception about car theft is that thieves are only after new cars. Not true – car love knows no bounds with the criminal type.


In reality, thieves are more likely to steal older and more trustworthy vehicles because there’s a large demand for their parts. A newer car has been in the market for less time and so the demand for its parts has not grown to the extent of that for older cars.


So, even if you are driving a second-hand car, it’s worth considering getting a comprehensive car insurance that covers you for car theft or loss, among others. Have a good think about your unique needs.



“Compulsory Third Party Insurance Covers Damage to My Car.”


Compulsory third party insurance (also known as CTP or green slip) is mandatory for every car driver in Australia and is typically included in the cost of car registration. It’s the most basic insurance you can get as a car owner.


However, your CTP only covers the damage or injury your car causes to another person. This means the cost of the damage you cause to your own car won’t be covered. Getting a comprehensive car insurance policy can help minimise costs and cover your own car for damages. If you want your vehicle to be protected you need to look beyond CTP.



“Personal Property Inside My Car is Covered By My Car Insurance.”


Hands up if you often leave valuables inside your vehicle. Thought so. It’s something most of us do from time to time – life’s busy and it’s easy to forget.


That’s why it’s important to know most car insurance policies don’t cover personal property like mobile telephones/devices, handbags and laptops. Further, valuables left inside a vehicle make your car more vulnerable to theft. Even if you’re just running a five minute errand, take important belongings with you.


Better safe than sorry. Consider leaving a reminder somewhere in the car that you see from time to time, to continue to prompt yourself. Perhaps a sticker in the corner of your windscreen?



Fact: Policy Savings Can Be Made.


You can help yourself save money on your car insurance premium by equipping yourself with facts. Knowledge is power.


If you have questions about your policy then it’s best to talk to your provider to set the record straight. If they can’t answer your questions then look elsewhere. And if you’re taking out a new comprehensive car insurance policy it’s always best to shop around. This applies whether you’re focused on the cheapest car insurance, the best value or being covered for particular aspects.


Why not check out PD Insurance while you’re at it? We offer affordable comprehensive car insurance and, as mentioned earlier, we provide discounts for people who are the only driver of their car. See if we can help.


Over to You

Did you enjoy our list of common car insurance myths? Do you have any others to share? Let us know in the comments below.


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1 day ago

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What do you think, could this be accurate? Whether its around the home or even your car, have you had to wait for a repair?

What do you think, could this be accurate? Whether it’s around the home or even your car, have you had to wait for a repair? See MoreSee Less

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Doesn't work with mine. All I hear is your doing that wrong just put it on the list 🤬🤬🤬


Didnt work with mine, it was my tool set. I usually fixed everything anyway.

No I can do most things myself except for technology stuff

Or book someone in to be paid to fix it

Nope would not have worked with my ex lol


That depends on the guy in question.

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6 days ago

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A huge win for pet lovers in NSW! 🐶🐟🐱 🐦Pets are now permitted in NSW apartments after the NSW Court of Appeal ruled that it was unlawful to place blanket bans on pets in apartments. ➡️ Do you think pets should be allowed in apartments? See MoreSee Less

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David Facchini I bet Sofee will be excited now that she's moving out 😂

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