Auto Insurance

factors insurance companies take into account when determining your auto premium:

Car image

Clean records often lead to lower rates, while violations like speeding tickets or accidents indicate higher risk and result in increased costs. Safe driving pays off.

Insurance providers review your claims history to assess your risk. If you’ve made frequent claims or been found at fault in accidents, your premiums may rise. A claim-free history, however, can lead to discounts.

How you use your car affects your rate. Daily commutes, long distances, or business use often result in higher premiums due to increased risk, while occasional or personal use typically costs less.

Your location influences your insurance costs. High-traffic, high-crime urban areas generally have higher premiums, while rural or less populated regions are often less expensive to insure.

Certified driver training or defensive driving courses can reduce your premium by showing insurers you’re committed to safe driving.

Auto Insurance – How much do you know?

1 / 5

I don’t live in city, so my vehicle isn’t at risk of being stolen. 

2 / 5

My rates wont increase from speeding ticket, as it was only a minor conviction without demerit points. 

3 / 5

If I rent a vehicle anywhere outside of Canada, my auto policy will cover that rental while I’m driving it.

4 / 5

I can get a discount on my car insurance if I complete driver training?

5 / 5

I will be rewarded with further discounts on my auto policy just for being a good driver.  

Your score is

The average score is 53%

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The amount and type of coverage you choose will significantly impact your premiums. Policies that cover replacement costs—the amount needed to rebuild the home—typically have higher premiums compared to those that cover the actual cash value, which accounts for depreciation. Additionally, opting for more extensive coverage, such as endorsements for valuable items or higher liability limits, can increase your premiums.

Personal factors play a role as well. Insurers often use credit scores to assess risk, with higher scores potentially leading to lower premiums. A history of frequent claims can indicate higher risk, resulting in increased costs. Furthermore, the occupancy of the home matters; owner-occupied homes generally have lower premiums compared to rental properties or vacation homes.

Finally, the choices you make regarding deductibles and potential discounts can affect your premiums. Selecting a higher deductible, which is the amount you pay out of pocket before insurance kicks in, can lower your premium. Many insurers also offer various discounts for bundling home and auto insurance, installing security systems, or maintaining a claim-free history for a certain period.

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