So you’ve done your research. You found the perfect car for you. It’s got the features you want at a price that works within your budget. You’re ready to go, right? Well, not quite. Before the dealer will let you drive off the lot, you’re going to need auto insurance. In Newfoundland & Labrador, auto insurance is mandatory, so learning about how auto insurance rates are determined will help you to navigate why rates vary and assist you with your auto buying decision.
Factors that Impact your Auto Insurance Rates
- Age of Insured Driver(s) – Young Canadians represent 13% of the licensed driving population but account for 20% of motor vehicle deaths and injuries, so rates are typically higher than their older counterparts.
- Driver record – Studies indicate that drivers with past claims are more likely to have future claims. Drivers with moving violations, accidents, and/or claims in the past three years will usually pay a higher price for their automobile insurance than those ensuring the same vehicle but are “loss-free.”
- The Type of Vehicle You Drive – Both size and performance impact premium costs:
- Size: Larger cars tend to be less expensive to insure than smaller cars because they typically suffer less damage in an accident.
- Performance: High-performance vehicles, such as sports cars, tend to be more expensive to insure since they are statistically driven more aggressively. As a result, they tend to be involved in accidents more frequently.
- Value and Age of Car – As a simple rule of thumb, the more expensive the car, the more it will cost to insure. The newer the vehicle, the more it costs to insure.
- Car Features – You can earn premium discounts based on the vehicle’s safety features, such as anti-lock brakes, airbags, anti-theft devices, and having more than one car on the policy.
- Deductible Choice – The higher your deductible, the lower your premium.
Talk to an Insurance Advisor
The best way to ensure you’re getting the best coverage and the best rates possible for you is to talk to a Wedgwood Insurance Advisor. As a broker, we represent many of Canada’s largest and most stable insurance companies meaning we have the power to shop around for the best auto insurance rates for you.
Here are some of the top ways to save on your auto insurance premium:
- Consider raising your deductible.
- Keep up your good driving record.
- Drive a car with safety features such as anti-lock brakes and airbags.
- Install an anti-theft device.