Whether or not you believe in Santa is up to you. But regardless of your opinion on the jolly man in red, don’t fall for the following myths about insurance for his sleigh (or your car):
The color of the sleigh affects the premium: Many believe that a flashy red sleigh is more expensive to insure than one painted reindeer brown. What actually matters is the type of sleigh. Vehicle insurance premiums are based on make, model, body type, safety record, and the cost of repair – not on color.
Santa’s age means his insurance will cost more: No, it does not cost more to insure your sleigh when you get older. In fact, many drivers over fifty-five may qualify for reduced rates. Check with your agent about senior or reduced-driving discounts.
Making the “Nice” list means you can go with basic liability: Basic liability may meet law requirements, but it’s rarely enough. Accidents often cost more than the minimum. Plus, standard liability usually doesn’t cover you if your sleigh is stolen by the Grinch, vandalized by South Pole elves, or damaged by snowstorms. However nice you are.
If an elf borrows the sleigh, the elf’s insurance will cover him: Typically, the policy that covers the sleigh is considered primary. This means that Santa’s insurance company must pay for damages, regardless of who has the reins. Laws differ by region, so if you’re considering loaning out your sleigh, check with your agent to ensure proper coverage is in place.