While the primary influence on auto insurance premiums is always the driving history of the operators, there are a number of other significant influences on rates. Your residence postal code is perhaps the most significant, as auto rates vary from region to region depending on the history of claims incidence and frequency in the area in which the auto is garaged. Traffic density, proximity to highways, local demographics, and even intersection design in the area can impact the claims history in your area.
Insurers will also increase or decrease rates in an area to increase or decrease the amount of customers in a given area to ensure good spread of their risk. Weak investment returns will put pressure on premiums, as will increased overall claims experience. The Insurance Bureau of Canada is the entity that tracks claims experience for the various makes and models of vehicles, and they will increase or decrease the vehicle rate groups to reflect historical experience.
Premiums will increase if you use your vehicle for regular commuting, if you use it for your business, if you have underage (less than 25 years old) drivers in the household, or if you put a large number of kms on the vehicle regularly. Lower deductibles and increased limits will also increase your premiums. Certain vehicle makes and models will result in higher premiums, the cost of insurance doesn’t necessarily track well with vehicle values. Some vehicles see higher theft claims, some see higher injury rates in collisions.
While nothing will be as effective as maintaining a good driving record, there are some things you can do to help.
Laura does the work to get us the best prices with the best coverage. Her yearly renewal visit is comprehensive to say the least, but when she leaves, we all understand the exact nature of each and every policy our business has.
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