How Your Auto Insurance Rate is Decided
WARNING: Car insurance rules and regulations may differ drastically from province to province across Canada. The rules outlined by Kanetix below are applicable in select provinces only. Please check with your insurance provider for more details regarding your coverage. This article is written and endorsed by Kanetix.
Most drivers don't know what goes into determining their auto insurance rate. They compare rates among different companies hoping they'll get a number they like. However, there are many different factors that go into figuring out how much you will be charged for auto insurance. What are some of these factors?
How Safe Is Your Car?
If you are not taking steps to keep your car secure, your auto insurance rates will be higher than those who do. For example, you should keep your car in a garage or another secure area at night. You should also have an anti-theft alarm on your car. These steps ensure that your car or truck will not be broken into, which will force you to file a claim.
What Are Your Driving Habits?
Drivers who get into accidents or get tickets are going to see higher rates than those who are safe drivers. This is because your insurance company has to pay damages if you are at fault for an accident. In some cases, the insurance company has to pay damages even if you are not at fault if you are in a province such as Ontario. Drivers cited for traffic violations show traits of a person who is not responsible behind the wheel. Aggressive drivers are more likely to get into an accident or cause damage to their car. Your aggression is then going to lead to higher insurance rates.
Do You Have Good Credit?
Yes, your credit score can go a long way toward determining if you are going to get a good rate on your next auto insurance policy. Those with good credit are less likely to file claims on their policy. They also are more likely to be safe drivers who have families they need to provide for. Those with bad credit tend to be less responsible and more likely to file a claim on their policy. Therefore, you should consider cleaning up your credit report if you want to get the best deal on auto insurance.
What Discounts Are You Eligible For?
Getting a good rate on your insurance policy is easier if you inquire about discounts that are available to you. An easy way to save on your policy is to pay it in full every six months. Another easy way to save is to put yourself on the same policy as a driver who gets a lot of discounts. This allows you to benefit from the same discounts as the original policyholder.
How Old Are You?
Younger drivers are almost always going to pay higher rates than older drivers. This is because older drivers are more experienced and tend to cause fewer accidents. If you are under the age of 25, you are going to pay the highest rates regardless of your ability to drive a car. The good news is that you can lower your rate by taking a driver education course.
There are many factors that go into determining what your auto insurance rate is going to be. Taking steps to secure your car at night, inquiring about available discounts and learning how to be a safe driver are all good ways to lower your insurance rate. Another good way to get a lower rate is by shopping around. At KANETIX, car insurance companies compete for your dollar so you can rest assured knowing you're getting a great deal. To get more specific information as to how your insurance company determines your specific rate, you can call your insurance agent today.