What Goes into Your Auto Insurance Rates?
Being in Canada we are all required to buy auto insurance to own a car. Each province has their own insurance rules and minimum requirements. Where you must pay for the premium, it’s important to understand what can impact your rates.
Generally, your rate can be broken down into two parts. One will be the rate on your vehicle, and the other is the rate for the drivers. When looking at the rating on the vehicle, the type of vehicle will play an impact.
Factors that Play a Part in the Rate:
- How much would cost to repair?
- How often do cars like it get stolen?
- Is the car safe for the occupants?
- Also, how likely it is to get damaged in an accident?
Even if two cars cost around the same value. Some of their safety features, or lack thereof, can make a big difference in the price you pay for your insurance. Another big impact of premium will be the coverage you choose for your vehicle.
Again, every vehicle is going to cost a different amount. The difference between minimum liability coverage and full coverage can be overwhelming. If you finance your vehicle, you most likely don’t have a choice. You will need full coverage to meet your finance requirements.
Factors that Play a Part in the Driver’s Rating:
- Previous Policy Info
Your experience plays a big role. While, the age of a driver doesn’t play that big of a role any more. It’s more the years they have been driving and insured. Clearly, someone who has been driving for 20 years without any accidents or tickets is going to pay less, rather than, someone who just got their license and has tickets or accidents.
How someone uses their car will also play a role in their rating. Someone who doesn’t drive a lot is less likely to be in an accident because they are on the road less. Someone who drives a lot is on the road more and is more likely to be in an accident. Different locations can impact the price too. The insurance companies look at data that shows how many thefts or collisions happen in an area. This can make the price go up or down.
Therefore, if you know the many different factors that go into your auto insurance rates, you will better understand your policy. Get your quote today
If you have any questions, feel free to call one of our advisors. They can help you understand anything you need to know about your policy.