How To Get Cheaper Auto Insurance Quotes in Canada

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We’ve teamed up with Canadian Car Insurance comparison website Rates.ca to let you know everything you need to know about car insurance and to help you get cheap auto insurance quotes online. Other than buying your car, insuring your car in Canada can often be the next highest cost we have to pay.

In this guide we’ll tell you how to drive down the cost of your cover, without cutting corners and still maintaining favourable terms from your insurance provider.

Whatever your circumstances, there are always ways to save money on your car insurance. But there are numerous factors that are taken into account when your insurance premium is quoted:

 

  • Location

If you live in a large city there are likely to be more cars on the road, increasing the chance of an accident. Also, cars in large urban centres are unfortunately more likely to be stolen. Both the higher probability of getting into a car accident and getting your vehicle stolen are factors that lead to often higher car premiums in urban areas.

 

  • Vehicle

The make, model and age are major factors used in determining your insurance premiums. Data on the claims history (accidents, theft, vandalism, etc.) is used to determine the probability of a claim for your type of vehicle. This data is combined with the cost of the claim for the vehicle to determine your premium. Put simply, a big Mercedes, for example, can have a higher premium due to higher cost of repairing or replacing it.

 

  • Vehicle usage

This is an obvious one. The more often you use your vehicle, the higher the likelihood of being involved in an accident, and thus the higher the premium.

 

  • Your driving record

Your insurance rates are directly influenced by the length of your driving history as well as your past driving habits. Accidents that are considered ‘at fault’ and speeding convictions count towards your driving record. Some insurance companies will not count your first minor speeding offence against you and some may even offer ‘accident forgiveness’ on your first accident. The good news is that accidents and speeding convictions don’t stay on your record forever. Parking tickets have no effect on insurance premiums.

 

  • Profile

a. Age – Drivers who are 25 years of age and older generally pay much less for their insurance. This is based on statistical data that shows those over 25 years of age, on average, tend to drive more carefully and have a lower probability of claiming. Some insurance companies also have additional discounts for retirees.
b. Gender – Statistics show that females tend to get less tickets and are less likely to be involved in an accident compared to males. As a result, females often pay less for auto insurance.
c. Marital Status – Some insurance companies give discounts to married drivers. Statistics show that single drivers have a higher probability of being involved in a car accident and/or receiving a speeding ticket.

 

  • Coverage

The type of cover you choose and your coverage limits will impact your premium. The greater the coverage, the higher the premium. In addition, selecting lower excesses/deductibles will usually increase your premium, especially if you pay monthly. With a lower excess/deductible, you would be responsible for paying a smaller portion of the claims, if they arise.

 

  • Insurance company

Insurance companies set their own rates within the boundaries assigned by regulators. Insurance companies evaluate risk differently and therefore vary in the rates they provide for their risk groups. Insurance companies also specialise in particular market segments – i.e. high risk drivers, drivers in urban areas, young drivers, etc.

With so many factors used by insurance companies to set premiums, shopping around for the best rate becomes imperative. Try the free Rates.ca car insurance comparison service to get quotes from multiple insurance companies/brokers in one place. Knowing the main factors outlined above not only justifies the importance of shopping around but also helps you understand what you need to do in order to keep your premiums down for future years.

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