7 Factors that Affect Your Auto Insurance Premiums

There’s no way around it — auto insurance costs a lot of money, however, it is necessary to have insurance if you drive a car in Canada. Several criteria determine the amount in which you have to pay, and know that certain habits help you to keep it as low as possible. Here are seven main factors that influence how much you pay for car insurance.

1. Age and sex

   Age is frequently directly related to the experience of a driver, so on the whole, older drivers pay less than younger drivers. Additionally, as unfair as it may seem, women cost less to insure because they file typically cost less than the claims filed by men.

2. Driving record and car usage

   A clean driving record will keep your premiums low. Driving a short distance as well as personal use only are also elements that influence the premiums to pay in your own interest.

3. Location

   Certain cities have higher incidences of auto theft. If you live in one of those areas, you can expect your premium to be higher than those of people who live in safer areas.

4. Type of vehicle

   The vehicle model that you drive can significantly influence the price of your premium. In general, newer cars cost more to insure, although cars that are more than ten years old can cost more to insure as well due to safety issues.

5. Credit score

   Statistically speaking, individuals with higher credit scores tend to be safer drivers and keep their cars well maintained. As a result, many insurance companies will extend discounts to individuals with good credit scores.

6. Desired coverage

   A higher deductible will mean a lower premium, as will go with just civil liability insurance and waiving vehicle coverage.

7. Available discounts

   ​Ask your insurance company about the discounts they offer to customers. You may find you can save some money if you’ve got a hybrid car, install an anti-theft system, or pay your insurance premiums online.

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