Understanding your insurance rates and benefits can be confusing. Here are a few things we hope to clarify for you.
Always remember when buying a new car that your rates are subject to change due to perhaps the cost of the newer model you have chosen.
How Does Your Insurance Company Calculate Your Premium?
A few factors car insurance companies take into account when calculating your premium rates and final cost are:
1) The Vehicle - The year and make of your vehicle will be the first thing they look at along with any add-ons chosen. The newer the car, the higher the rate. An older car will most likely have a lower rate.
2) Usage - Do you use your car for business or pleasure? Do you use your car to get to work? Usually insurance companies will try to understand how far you are driving to and from your home.
3) Driving Record & Coverages - Any previous accident or claims on your account? That can drive your insurance rate higher.
What is a deductible?
A car insurance deductible is the amount of money the driver agrees to pay when settling a car insurance claim. If you are in an accident you may have two potential deductibles (one for each coverage of the accident). Agreeing to a higher deductible can help a driver receive lower car insurance premium rates. Conversely, smaller deductibles usually imply relatively higher car insurance premiums. If you’re a good driver and willing to assume more financial risk if an ‘at-fault’ accident happens, higher deductibles can help save money on car insurance.
You could save money on car insurance by changing how you pay.
Some insurance companies offer substantial discounts for having your premium deducted from a chequing account or charged to a credit card. These automatic payments can also make life more convenient and eliminate the risk of a missed payment and a harmful lapse in coverage. Always check to see if you qualify for a discount based on your payment options.
Who Needs Auto Insurance?
EVERYONE! When behind the wheel of a car in Canada, you are required by law to have auto insurance. In most provinces the fines for the offence are as such: getting your car impounded along with anywhere from a $5,000 to $50,000 fine. To make matters worse, most drivers found without auto insurance could be considered high risk. In some cases, auto insurance companies may ask you to pay higher auto insurance premiums. If an uninsured driver is involved in a collision and found at fault for an accident causing injury or death, they could be found personally responsible for the injured party’s medical costs and any other losses.
Stay Safe Buddies.