There are several factors that go into determining the cost of your car insurance. Below are some of the common considerations looked at by insurance companies when determining your rate.
Your Driving Record
Your driving record can have a significant impact on the cost of your insurance. Items such as license suspensions, at fault accidents and convictions for driving offences can increase your premiums. If you are a good driver and have never received a ticket, your driving habits can still come into play. For example, the length of your daily commute, your driving experience, etc are considered when calculating the cost of insurance.
How Much You Drive
If you use your vehicle to commute to work every day or put on a high number of kilometres every year, you may pay a higher insurance rate. The fact is that higher mileage increases the possibilities of accidents and this is factored into your insurance calculation.
The Make and Model of Your Car
There are statistics that relate to the frequency of claims regarding vehicles of certain makes and models. If it’s found that the type of vehicle you drive is less likely to be involved in a collision or theft claims (as well as having anti-theft features which result in smaller losses) can result in paying lower insurance premiums.
Insurance companies tend to charge higher rates for urban drivers compared to their rural counterparts. The fact is that urban cars have more likelihood of being involved in an accident or getting stolen than more rural vehicles. Insurance companies assess the claim history of each area to determine how much should be paid by the drivers who live there.
Tips to Reduce Your Auto Insurance
Even with the number of factors that an insurance company will use to calculate your premium, there are still a number of ways that you may be able to lower your rate. Here are three tips to be aware of that could help save you money.
#1 Get Educated
When it comes to saving on auto insurance, the more you know the better. Speak to a professional at Bow Valley Insurance to learn more about how you can reduce your premiums.
#2 Choose a Higher Deductible
In most cases, choosing a higher deductible can lower the cost of your premiums. However, before you make a decision, consider what you will be responsible for paying out of pocket to make sure that opting for a higher deductible is the right choice for your situation.
There are a number of discounts available that can help you save on auto insurance. These can include multi-policy, customer loyalty, age, occupation, good driving record and more.
If you are about to start shopping for a new car, speak to a knowledgeable associate at Bow Valley Insurance first. We can not only help you identify the best coverage for your needs but can also help you compare car insurance quotes for the model and type of vehicle that you are considering.