Did you know that auto insurance rates are meticulously calculated by auto insurance providers? Car insurance companies determine your auto insurance using the provider claim data and your private information to make an estimated guess on your likelihood of filing a claim. The safer an individual appears based on certain factors, the less they will have to pay for insurance.
How can you be aware of what the factors are and whether they affect you? Check out our guide for the key factors that can increase your insurance:
1. Where You Reside
Auto insurance companies require certain personal information from you to determine what you will pay. Your postal code will be one of the first pieces of information you will have to provide to them. If you reside in a well-populated, urban location, you are more likely to pay more for insurance. This is because congestion, traffic and accidents are highly likely to occur than in a more rural area. Your insurance company can also tell the rate of stolen vehicles, fraudulent claims and crime in your location based on your postal code.
2. Driving History
Drivers with a completely clean driving are much more likely to qualify for better, more affordable insurance rates than other drivers. Insurance companies will find you to be a competent, safe driver and less likely to file a claim. Drivers that have had speeding, traffic or DUI violations will often have to pay significantly higher auto insurance rates. You may not be aware of said violation affecting your insurance rates until you have renewed your premium.
3. Your Vehicle
The type of car you own has an impact on your insurance rates, and insurance companies also base it on the way you drive your vehicle. If your insurance provider has data that proves your vehicle to have been involved in more accidents or claims, then your insurance rate will be increased. To have a comprehension of how insurance rates can vary based on the vehicle from cheapest to most expensive, there is a list of the Top 10 Cheapest Cars to Insure in Canada.
4. Your Gender and Marital Status
Based on the Financial Services Commission of Ontario, the gender of a driver is used to determine what their auto insurance rate will be. Data has proven that younger males are much more likely to take risks while driving than females. Insurance companies in Ontario are more likely to handle claims from male drivers, which is conducive to their higher insurance rates.
Although some components that increase an insurance rate may be unavoidable, you may be able to decrease your premiums with Fanshawe Driving School. By taking our driving school courses, you are proving to insurance providers that you are competent, safety-oriented and serious about defensive driving. Book with us today to pave the road to success and possible premium reductions!