Your Car Insurance Price: Top Factors that Really Matter
Your car insurance price (premiums) are calculated using a wide range of factors, but there are a few major things that will play the biggest role in determining the particular car insurance price you will pay, whether you live in a province with a Government run auto insurance system like British Columbia, Manitoba and Saskatchewan, or a partially privatized insurance system like Quebec, or a fully privatized insurance system like those found in Alberta, Ontario, New Brunswick, Newfoundland and Labrador, Nova Scotia, Prince Edward Island, Yukon, Northwest Territories or Nunavut.
When it comes to their car insurance price, Canada drivers can count on these factors carrying a lot of weight in the rating process.
The Kind of Car You Drive
The type of car you drive has a major impact on your insurance premiums (insurance price). Some cars have lower rates, while others cost more to insure due to factors such as the value of the car, how expensive it is to repair that car, and the statistics regarding accidents in that type of car. Among the most expensive cars to insure are high-value luxury vehicles, high-end SUVs, and powerful sports cars. Some of the most affordable cars to insure are smaller, economical vehicles and cars with the highest safety ratings and lowest rates of theft.
Your Driving Record
Most people know that having tickets and accidents on your record will cause insurance rates to go up. Having demerits is the quickest way to watch your rates go up. But that's not the only factor related to your driving record that can impact rates. The length of your record matters as well. Drivers who have been on the road longer are more experienced and less likely to have an accident. New drivers are more likely to make mistakes and have an accident; that makes them more expensive to insure because of the risk they represent.
Your Driving Record
Most people know that having tickets and accidents on your record will cause insurance rates to go up. Having demerits is the quickest way to watch your rates go up. But that's not the only factor related to your driving record that can impact rates. The length of your record matters as well. Drivers who have been on the road longer are more experienced and less likely to have an accident. New drivers are more likely to make mistakes and have an accident; that makes them more expensive to insure because of the risk they represent.
Where You Live
Your home address and where and how your car is kept at home have an impact on your car insurance price. Some postal codes have lower rates of theft and safer streets where accidents are less frequent. Others may have high rates of theft, vandalism, or dangerous driving conditions. Where your car is parked at night makes a difference in your rates, as does the area in which you frequently drive.
Your Driving Habits
Whether you commute daily and how far you travel on that commute is a deciding factor in how much you pay for your Canadian motor vehicle Insurance. People with long daily commutes are on the road a lot more than those who remain at home all day, going out only to run errands. A car used for commuting, especially a long commute, will have a higher insurance rate than a car that is used for pleasure or infrequently.
Your Insurance History
The length and stability of the auto insurance record Canadian drivers have maintained will have an impact on their car insurance price. If you have kept a policy in force with no gaps in coverage for many years, you're likely to qualify for a better rate. The longer you have an insurance policy in force without a claim the better the rate you can expect to see as well. A strong, clean insurance record is a good sign for low car insurance rates. Periods where you have been uninsured can hurt your rates.
The Discounts For Which You Qualify
Canadian auto insurance companies offer a wide array of discounts today, and the more you qualify for, the cheaper your rate will be. The multi-policy discount is one of the best discounts available; people with more than one vehicle or with a home, tenant, or other insurance policy in force at the same company will see a lower rate on each individual car insurance policy. Qualifying for discounts like good driver, good student, security system discounts and more will lower your car insurance price faster than just about any other option.
Calculating insurance rates is a complex process that requires insurance companies to take into consideration multiple factors, statistics, and of course their own company policies. This process is a big part of the reason why rates differ from company to company, and why by shopping around for the best car insurance price, drivers can often save substantially more than they thought possible.