You’ve just received your annual premium renewal notice and the rate to insure your vehicle has just gone up. Automobile Insurance premiums are affected by several factors. Haas Insurance offers the following explanation for your increase.
A change in your driving record, such as an “at fault” accident, or tickets in the past year is the most common reason for a price increase in your car insurance.
Minor driving convictions under the highway traffic act, such as failing to have your pink slip in your car, failing to renew your license plate sticker, failing to wear your seat belt, talking on your cell phone etc., regardless of the demerit points deducted, are considered minor. If you have several minor violations on your driving record, you are most likely going to face a premium increase.
If you only have 1 minor violation in the last 3 years, depending on the insurance company your with, your rates could go up. However, there are insurance companies that don’t rate for 1 conviction. This is why it’s important to contact a Haas insurance broker who can shop the best rates on your behalf every year.
If you are convicted of a major driving offence, your car insurance rates are definitely going up. Major driving convictions include passing a school bus, speeding in a school zone, failing to report an accident, speeding over 50km per hour and more.
Criminal Code offences are considered “Serious” driving convictions and include, DUI –(driving under the influence of alcohol), racing, careless driving, driving with a license suspension, etc. Whether you are convicted of a major or serious driving offense, under the criminal code, you are automatically considered a “high risk” driver. Not all insurance companies will take on high-risk clients. Your insurance broker can research companies that insure high-risk drivers and once again, shop the best offer.
It is important to disclose a change in the use of your vehicle. If you are using your car to do business, you may require business or commercial automobile insurance. The type of use and estimated kilometers driven affect your car insurance rates. Moving from a small town to a big city, or vice versa may change your insurance premium.
Lastly, insurance companies are subject to general industry rate increases. These increases are governed and guided by the Financlal Services Commission of Ontario.
It’s very important for you to be honest with your insurance broker and disclose all pertinent information. You may be pleasantly surprised that your rate could go down. Be sure that you have the proper coverage when you need it most, call or email us today!