Have you ever spoken with a friend or relative and come to the realization that you’re paying quite a bit more or less for car insurance than they are? It happens all the time. And while there’s no one-size-fits-all insurance policy, there are different circumstances that will determine your premium, some of which you can control. Below is a list of different factors that will inform the price of your insurance premium.
1. Safe
drivers training. Did you know AMA and other organizations offer
basic programs (after you obtain your license) that teach skills to feel safe
and confident behind the wheel? Graduates of the program receive a certificate
that can be used for discounts with most insurance companies.
2. Accidents. Over the course of a typical
lifetime, you will probably get in 3-4 car accidents. Depending on the
circumstance, who was driving the vehicle and how much damage there was, your
premium is based on a calculated estimate of future risk.
3. Tickets.
This
is another indication of someone’s safe driving habits – how many tickets are
you racking up? The exceptions are parking tickets and photo radar, because the
identity of the driver is unknown.
4. Credit Score. Did you know there is a statistical
correlation between poor credit and more insurance claims? More and more
insurance companies are considering your credit score (which is hugely varied
among people) when calculating risk. Check out our other blog on how to achieve
good credit.
5. Postal Code. If
you are living in a neighbourhood with higher incidences of accidents,
vandalism, theft and claims, chances are your premium will be adjusted.
6. Annual
KMs. Are you driving to work every day between
different cities while your friend takes the bus most of the time? Your
commutes are not the same, and your premiums won’t be either.
7. Vehicle
Age. In
the event of an accident, your
friend’s 1980 Chevrolet is going to cost less to repair than a 2016 Acura, for
instance.
8. Deductible Amount. A
deductible is what you would pay out of pocket before your insurance company
pays its share. You have a choice, for instance, whether your coverage requires
paying $500 or $1000 in the case of an accident, and if you choose $1000 your
monthly premium will be less money.
9. Occupations. Did
you know that there are certain professions that may be eligible to receive
additional insurance discounts? Chauffeurs,
doctors, tradesmen, lawyers, and people who work in the insurance industry may
have discounts that vary by company.
At the end of the day, if you are shopping around for insurance, a broker can provide you with the best pricing options by accessing multiple markets at a time. Give us a call at 1-877-218-2008 to discuss your options.
At the end of the day, if you are shopping around for insurance, a broker can provide you with the best pricing options by accessing multiple markets at a time. Give us a call at 1-877-218-2008 to discuss your options.
Marchella Mafrica
Communications Specialist
Sharp Insurance
Marchella@sharpinsurance.ca