MANY FACTORS AFFECT YOU INSURANCE PREMIUMS
Without question, a vehicle’s price point is the biggest indicator of how much it will cost to insure. More expensive vehicles cost more to insure because they cost more to repair. But the vehicle price isn’t the only thing insurance companies consider.
According to the Insurance Bureau of Canada, the following factors also determine rates:
- The vehicle‘s make, model and year
- Where you live (big cities have higher collision and theft rates)
- Your age and gender
- The driving records of anyone who may be driving the vehicle
- The car’s anti-theft and safety features
The Institute for Highway Safety ranks different car models for safety. Find out how your vehicle ranks to get an understanding of your insurance rate.
MAYBE YOU CAN LOWER YOUR AUTO INSURANCE
Can you make any of these changes?
- Take public transit to work and adjust your policy to “pleasure use”
- Remove high-risk drivers from your policy so you’re not penalized
- Raise your deductible a bit
- Increase your liability coverage slightly
- Insure all household vehicles together for a multi-vehicle discount
- Leverage any clubs or unions to which you belong (CAA Members save on auto insurance)
- Bundle your auto and home insurance (CAA saves you up to 17.5% for bundling)
- Purchase and install winter tires
- Maintain safe driving habits
WHEN RESEARCHING INSURANCE RATES, MAKE SURE YOU’RE COMPARING APPLES TO APPLES
Different providers offer different benefits—while one’s rate may be slightly higher, the benefits they offer may offset the slight difference. CAA Insurance’, for example, offers a Forgive and Forget® benefit after your first at-fault accident, which doesn’t affect your good driving record.
Knowing the facts and talking to a licensed CAA Insurance agent can make the process a lot easier.
Source: CAA Magazine