7 factors that affect your premium
Insurers take various factors into account to set your auto insurance premium, such as the type of vehicle you own, the people who drive it and the coverage you’ve chosen.
1. What car you drive (type of vehicule, make, model, year, value, repair costs, equipment, etc.)
It costs more to insure a car that has expensive parts.
2. What you use your car for
Does your son or daughter sometimes drive your car? Will you drive to work in your vehicle? Let your insurer know. It’s not a good idea to leave out certain information. In case of a loss, your omission will affect the amount you’ll receive for damages. And in some cases, you may receive no payment at all.
Speak to your agent or your insurance broker about your situation to take informed decisions and be sure to indicate how you will use your vehicle.
3. Where you live and where you use your vehicle
You may more easily be the victim of a car accident or theft in a large city.
4. Driver profile (age, sex, etc.)
Claim requency varies considerably according to the driver’s profile.
5. Coverage and deductibles chosen
A higher deductible may lower your insurance premium.
6. The number of accidents you’ve had and the number of claims you’ve made, whether or not you were at fault
This information can be found in the claims data base Fichier central des sinistres automobiles.
7. Your driving record at the Société de l’assurance automobile du Québec (SAAQ)
It contains information on your driving experience and your demerit points.
Credit record
Can your insurer access your credit record? Most insurers use the information to quote you a fairer premium. You have the right to refuse. However, you should know that you may not get the most advantageous premium.
Determine the deductible
The deductible is the amount you’ll have to pay when you make a claim. This deductible applies when you file a claim for an at-fault accident. If you file a claim for a no-fault accident, there is no deductible to pay.
Source: Infoassurance.ca
