Insurance companies use a variety of factors and statistics to determine the cost of your auto insurance. Here’s the 7 biggest factors that determine your rate:

  1.  Your driving history. One of the biggest factors influencing the cost of your auto insurance is your driving history. Those with a poor driving record will pay more. Avoid accidents, speeding tickets and other small infractions to prevent your rates from rising unnecessarily. Those with a clean driving record could save thousands of dollars a year compared to someone who has been in multiple accidents over their driving history. The good news is that, typically, after some years of clean driving, those past infractions start to disappear.

What you’re using your vehicle to do also impacts rates. If you’re driving your car strictly for pleasure use, that will be much different from someone who drives to work each day or uses their vehicle for business or commercial purposes.

  1. The type and age of the vehicle you drive. What kind of vehicle you drive is also a major variable in determining your auto insurance rate. The average price can vary more than $500 annually between the least and most expensive vehicles to insure in Canada.

How old your vehicle is, also impacts your rate. Brand new vehicles will be priced differently from old ones, especially if that old car is a restored classic. Sometimes, new vehicle models actually have lower insurance rates than cars even a few years older.

How long you’ve owned a car is also going to play a role in your premiums. If you’ve been driving the same car for five years, typically you’ll enjoy lower pricing compared to someone who just bought that same car from you.

One of the easiest things you can do to lower your rates is to drive a car that’s safe, affordable and inexpensive to repair.

  1. Your age. Age does play a role in auto rates and, generally, you will pay more when you’re young and less as you get older. Drivers in the 18-25 age range pay higher average car insurance rates in Ontario because younger drivers are statistically more likely to get into an auto accident.
  1. Your location. Your address significantly affects how much you’re paying each year. Living just a few blocks over in a different postal code can have a drastic effect on your auto insurance rate. Insurers use your area’s history of insurance claims to determine rates. If you live in a neighbourhood with frequent car theft, break-ins or collisions, then you’re viewed as being more likely to have these things happen to you. And insurers compensate by charging you a higher rate.
  1. Your gender and marital status. Insurance companies can use the gender of a driver as a variable to determine auto insurance rates. Men are considered to be a greater risk than women because men tend to drive more, are more likely to be involved in accidents, and partake in risky driving behaviors.

Also, it is possible your marital status can influence rates, though not all insurers use this variable. Being married reduces careless driving habits and the risk of accidents. Statistics indicate that marriage brings with it a greater sense of responsibility to both spouse and children.

  1. Customer loyalty / multiple policies. Being loyal to Haas Insurance and a particular insurance company can earn you a lower rate.  Insurance companies offer renewal discounts and loyalty discounts. Also, insuring your home and automobile insurance with the same insurance company can result in a multi-line discount.
  1. Using winter tires. Using winter tires will qualify you for a discount on your vehicle insurance rates. Ask Haas Insurance for more information about discounts for winter tires.

Contact us to get your insurance started today or call for advice.

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