If you’re relatively new to the world of car insurance, it can be difficult to discern useful information and facts from fiction online.
Some websites tell you one thing while a blog post might tell you another. One thing we know for sure is you should be able to find the best information you can about car insurance and know what kinds of factors affect your rate.
In this article, we’ll discuss those factors as well as a few other things you hadn’t considered for your car insurance.
Your Driving Record Is Very Influential
Your driving record is probably the most influential factor on your car insurance rate. Bad marks like at-fault accidents, driving offences, and license suspensions can all cause a spike in your insurance premium. Even if you have a flawless driving record, factors like how long your daily commute is and how long you’ve been licensed are all used to calculate your premium.
How Often Do You Drive?
If you have a long commute each way, you’ll have to pay a higher premium since you’re increasing your risk by being out on the road more. This is verified by how many kilometers is the car driven one way to work.
What Kind of Car Do You Drive?
Insurance providers use a table of statistics that show the cost of repairs to a particular model of cars. Higher premiums are charged on vehicles where cost of repairs is high or the type of car is target for thieves. That being said, vehicle features with anti-theft and collision avoidance technologies can help lower your premium.
Can I Reduce My Premium?
There are a couple of things you can do to reduce your car insurance premium.
First, opting for a higher deductible can easily reduce your monthly premium. Evaluate your budget and see how much money you can reasonably spend out of pocket before insurance kicks in. Also weigh this against any other high deductibles you might have like for home insurance.
Second, look for discounts. Many insurance providers will offer discounts if you bundle your policies. You can also reduce your premium by paying your coverage for the entire year rather than month to month.
Car insurance shouldn’t be difficult to understand. Knowing what kinds of factors increase and decrease your premium is powerful knowledge to have.
About the Author
Kristopher Parks graduated with a Bachelor’s in finance at the University of Calgary. He has over 10 years of experience in the insurance industry as an agent/broker. He enjoys spending his free time with his family by going to hockey games and camping. If you’d like to contact him, you can do so at his LinkedIn.