To better understand how much car policy costs, it very helps to understands how car indemnity premiums are calculated. There are a number of factors that insurance companies take into consideration. It pays to understand how it works, so you can find the right coverage for your needs – at the right price. hera are eight different things that are taken into report to calculate cable car indemnity :

1. Your car

The make, model and year of your fomite all affect your cable car indemnity agio.
Your premium might be lower if the cable car exemplary has been statistically prove less likely to be involved in an accident or be stolen. It besides might be lower if the vehicle has better condom and handling characteristics, or is less costly to repair.
Insurers besides consider how much it would cost to replace your car if it was stolen or damaged beyond rectify.
Read through Common Car Insurance Myths to find out if things like the color of your car impact your premiums .

2. How often you drive

Depending on how often you drive, you may be at an increased gamble of being involved in an accident. And accidents can impact your indemnity premium. Insurers determine this by examining the number of kilometers you drive per class .

3. If you are driving for commercial purposes (not just commuting to your workplace)

If you use your vehicle for work, you may need to get commercial car insurance coverage. That ’ randomness because your personal cable car indemnity policy will not cover any accidents, damage or larceny that occur on a oeuvre vehicle. Your business may besides require a higher liability limit than is typically available through personal cable car indemnity policies.

4. Your driving record

Your record can affect how your car policy is calculated. policy companies use your drive record to determine how much of a risk you pose on the road. broadly, the better your record, the lower your policy premiums will be. When looking at your drive read, insurers chiefly look at :

  • The number of drivers
  • The number of years you’ve been licensed for
  • Any convictions due to driving infractions
  • The number of accidents you’ve had
  • Speeding tickets

Don ’ metric ton forget : Insurers besides take into report the number of drivers who use your vehicle and their drive records a well when they ’ re calculating car insurance.

5. Where you live

In Canada, where you live can affect your car indemnity rates. Car policy premiums are broadly higher in and around boastfully urban areas due to a higher number of accidents and larceny or vandalism claims.
In some provinces, insurers establish categories to classify people with alike profiles. Belonging to a group that is statistically more likely to be at blame in an accident or drive more recklessly could affect your policy premium .

6. The coverage you choose

While your peasant or territorial government dictates the minimal sum of indemnity you must carry, you besides have a numeral of coverage options to choose from. The amount of coverage you carry is an crucial choice, which affects the level of protection afforded by your indemnity policy and how besides how much your car insurance will cost. Generally, the more protection you carry, the more it will cost to insure your vehicle.
tip : If you want to lower your car insurance premium, an easy way to do it is to increase your deductible.
A deductible is the amount of money you have to pay towards a animate before your policy covers the rest. For example, if you are in an accident that causes $ 5,000 worth of damage to your car, and your deductible is $ 1,000 – you have to pay $ 1,000 towards the repair, and your insurance company covers the remaining $ 4,000 .

7. Special savings

To get the best value for your car policy, make sure to check out if you are eligible for any discounts or preferred rates. We can help you save if you :

  • Belong to a professional association*
  • Are a graduate of a Canadian university or college*
  • Bundle your auto and home insurance
  • Drive a hybrid or electric vehicle

concerned in even more savings ? Check out more dim-witted tips to save on car policy .

8. Factors beyond your control

Some factors that affect your car indemnity premiums are not related to you or your vehicle. For exemplar, if the government introduces a new regulation, or if the rate of inflation changes, your premium may be affected. *Exclusive to professional or alumnus groups that have an agreement with us .

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