There are many factors that are taken into account by insurance companies when providing you with an insurance price quote.
The type of vehicle you drive impacts the premiums you pay. Think of it this way. If you bought a sports car, are you more likely to speed? If so, does this increase the probability of you being involved in an accident? How much you drive will also affect your premiums which is why you are always asked to provide your approximate vehicle usage when filling out a form to obtain a quote. The more you drive the higher the chance that you could be involved in a motor vehicle accident.
Individuals with a clean driving record would generally pay lower premiums relative to individuals with tickets and/or accidents on their record. Other factors such as the length of your driving history also matter.
Where you live matters when calculating insurance premiums. Areas with higher occurrences of theft and collisions would result in higher premiums. Your age also has an effect on your coverage to the extent that if you are 25 years old or older you will generally pay much less to insure your vehicle. This is based on the notion that young new drivers are not as experienced and are therefore more likely to be involved in a traffic collision.
The larger the scope of the coverage and the higher the coverage limits you choose, the higher the premiums you will pay. The deductible, the portion that you must pay out of pocket as a result of a claim, is also important in the calculation of your insurance cost. The higher the deductible you choose the lower your automobile insurance premiums will be.
Some insurance companies will provide you with discounts if you meet certain criteria. Discounts can range from winter tire discounts to multi-vehicle discounts. Every insurance company treats discounts differently, so make sure to inquire in order to take advantage of reduced premiums.
It is also important to note that you are likely to pay different premiums for the exact same policy offered by different insurance companies. This is because premiums vary across companies. Insurance companies have unique factors and risk profiles affecting how they determine the cost of the coverages they provide. This is why using Rates.ca to shop around for car insurance online is so important! Our site allows you to compare car insurance quotes and choose not only cheap insurance but also one that is best suited for your needs. Get insurance quotes today for your vehicle by clicking here