Skip to main content

How do Vehicle Ratings Affect Insurance Premiums?

By January 24, 2022January 26th, 2022Personal Insurance
How do Vehicle Ratings Affect Insurance Premiums
Home » Blog » How do Vehicle Ratings Affect Insurance Premiums?

Knowing your vehicle’s rating might help you figure out how much your car insurance will cost. When purchasing a new vehicle, the base model and the top-of-the-line model are not priced the same. Auto insurance is the same way. Simply put, the cost to insure a vehicle (the premium) all depends on which vehicle you’re insuring.

What are vehicle ratings?

The three biggest factors that affect your car rating are the vehicle’s year, make, and model. These scores are based on claims data that The Canadian Loss Experience Automobile Rating (or CLEAR) system uses to determine the chance of an automobile being engaged in a claim and the cost of that claim.

If your automobile has a higher CLEAR system rating, it has a higher probability of being engaged in a claim, therefore your car insurance premium will be higher. That said, there are some steps you can take to reduce your car insurance premium.

How is my rating calculated?

  1. The vehicle’s age. Your car’s value decreases as it gets older. Because it is less expensive to maintain, it is also less expensive to insure. Naturally, each car depreciates at a different rate, and each car begins with a different value, therefore the impact on rates varies.
  2. The make and model. A sedan, for example, may have a lower car rating than a coupe because it is regarded as sportier and is statistically more likely to be involved in an accident.
  3. Statistics on the prevalence of theft. Certain cars consistently make the “most-stolen” list, so the car rating is higher. We routinely share lists from the Insurance Bureau of Canada on the Top 10 stolen vehicles in Newfoundland and Labrador.

What effect does my vehicle’s rating have on my insurance?

Simply put, your auto insurance premium will be lower if your car rating is lower, and vice versa. When shopping for a new car, request some insurance quotes so you can have a better idea of how much your overall cost will be. Because ratings are revised once a year, your premium may fluctuate even if your driving record is spotless.

How do I find my vehicle’s rating?

You can find this information on your certificate of automobile insurance or visit the Insurance Bureau of Canada’s website. This could come in handy if you’re on the market for a new car, truck or SUV.

Expert Advice from Wedgwood Insurance

There’s more to insurance than the price of the policy and Wedgwood goes above and beyond for our clients with expert advice you can trust, but don’t take our word for it. There’s a reason we’re Newfoundland & Labrador’s most trusted insurance broker.

With over 200 Google My Business reviews, come experience the Wedgwood difference with expert advice from our dedicated team. We work to ensure that every client has the coverage that best suits their needs through upfront complimentary consultations and midterm reviews.

  • This field is for validation purposes and should be left unchanged.

Author Jamie Ross

Jamie Ross leads the Marketing and Communications team at Wedgwood Insurance, renowned as one of Atlantic Canada’s premier independent insurance brokers. Bringing a wealth of experience amassed over many years at some of Canada's most esteemed advertising agencies, Jamie transitioned to the insurance industry in 2017. This pivotal move has marked a period of significant professional growth and contribution to the field. A native Nova Scotian, Jamie has been a resident of St. John's, NL, since 2011, where he has become an integral part of the local community. Learn more about Jamie.

More posts by Jamie Ross
Skip to content