Factors that may impact your Camrose car insurance rate
Insurers consider several factors when calculating your car insurance premium. A driver’s marital status, age, location, annual mileage, and driving record can all impact how much you pay for car insurance. We’ve compiled a list of the most common factors used to calculate Camrose auto insurance premiums below.
Provincial laws
Each Canadian province has its own regulations for car insurance, which include a minimum amount of coverage that drivers are required to carry. The minimum coverage in each province varies, but generally speaking, the higher the coverage, the more expensive the insurance. For example, in Alberta, drivers are required to carry $200,000 in third party liability coverage at all times.
Age
Nearly all insurance companies consider age to be an important factor in determining your insurance premium. This is because statistics show there is a correlation between age and risk level, based on experience. The younger a driver is, the less experience they have on the road and the more likely they are to get into a collision. For this reason, young drivers often pay the most for car insurance of any age group in Alberta. Another age group that may see higher insurance premiums is seniors. Since the data suggests that elderly people may have slower reaction times on the road, senior drivers typically pay more for car insurance.
Driving history
The most critical factor that may impact your Camrose car insurance rate is your driving history. Because it combines your driving experience with your driving record. The more driving experience you have, the less you will pay for car insurance. Young drivers typically pay the highest insurance premiums because they have little to no driving experience and are therefore considered more likely to get into accidents. However, driving experience alone is not enough to lower your insurance premiums. You must have the right kind of experience, which means a clean driving record.
If you have years of experience but also several speeding tickets, accidents, and DUIs on your record, your insurance premium will still be higher. In contrast, if you have several years of driving experience coupled with a clean driving record, you will likely be rewarded with a lower insurance premium.
The moral of the story? If you drive the speed limit and follow the rules of the road, you’ll likely pay less for auto insurance.
Location
Where you live and work can also impact how much you pay for car insurance. For example, if you live in an urban area, your insurance premiums will typically be higher because there is more traffic on the road, which increases your chances of getting into an accident. In contrast, those who reside in rural towns often pay less for car insurance because their odds of getting into an accident are less.
Another geographic circumstance that can impact your auto insurance rate is if you live in an area prone to climate related incidents.
Type of car
When calculating your car insurance rate, auto insurance companies will ask about the type of car you drive. You will likely be asked to provide the make, model, and year of your vehicle. Insurance companies use this information to determine the odds of your car being stolen and how much it would cost to replace or repair your car if it was damaged or stolen. The general rule of thumb is that the newer, more expensive the car, the more it will cost to insure. Therefore, drivers of luxury sports cars tend to have higher insurance premiums than people who drive older, more affordable cars. The one exception to this rule is if your new car is equipped with safety features and anti-theft devices, in which case the insurance provider may lower your premium.
Annual mileage
How frequently you drive may also impact your auto insurance rate. If you rarely drive your car (perhaps you only drive on the weekends or to the store once a week), then you may opt for a low mileage car insurance and pay less for insurance because you are less likely to get into an accident.
Conversely, if you’re constantly on the road, perhaps you have a long daily commute or you use your car for work, then your insurance premium may go up.
Car ownership duration
One final factor that insurance providers may take into account is the duration of car ownership. On the declarations page of the insurance policy, you must include a list of names of anyone who also drives your vehicle (this is most often a partner or teenage/adult child). If multiple people share the same car for years without any accidents, this speaks to your driving skills and responsibility, and your insurance premium may be lowered accordingly. Alternatively, if you purchase new cars every year and each member of your household has their own car, you’re likely to pay more for car insurance.
Marital status
One’s marital status can also affect their car insurance premium. Insurance companies rely on data when calculating insurance rates. Statistics suggest that married couples are more responsible, so it may be considered when your insurance premium is calculated.
How to get the lowest car insurance rate
Never pay more for car insurance than you have to by following the tips below. From bundling multiple policies into one to purchasing an electric vehicle, there are several ways you can save money on Camrose car insurance. Check out our top tips:
- Purchase car insurance for multiple vehicles together (savings of up to 20%)
- Buy multiple insurance policies (home insurance, business insurance, boat, ski condo and more) from the same provider (savings of up to 15%)
- Purchase a hybrid or electric vehicle (savings of up to 5%)
- Increase your deductible
- Enrol in driving school (for young drivers)
- Pay auto insurance annually rather than monthly
Is auto insurance required in Camrose?
Yes. In Canada, the government of each province and territory decides whether car insurance is mandatory. The government of Alberta has made auto insurance a legal requirement, which means Camrose drivers must have a valid, up-to-date car insurance policy at all times.
Further, beyond simply having car insurance, the car insurance you purchase must meet the minimum coverage requirements set by the province. In Alberta, drivers must carry $200,000 in third party liability coverage.
Can I drive without insurance in Camrose?
It is illegal for Camrose drivers to drive without insurance. This means that if caught, you could be fined up to $20,000 and even face jail time.
More specifically, for a first offense in Alberta, an uninsured motorist can be fined a minimum of $2,875 up to a maximum of $10,000. Even worse, failure to pay this fine can result in jail time ranging from 45 days to 6 months.
For a second offense in Alberta, the minimum fine is $5,000, and the maximum fine is $20,000. Again, failure to pay the fine can result in jail time, this time lasting anywhere between 60 days and 6 months.
To avoid the severe consequences of driving without insurance in Camrose, we recommend complying with the law by purchasing auto insurance.
Mandatory elements of car insurance in Camrose
Car insurance policies are far from simple. They consist of multiple components, from liability coverage and accident benefits coverage to direct compensation and uninsured automobile coverage. As you now know, auto insurance is legally required in Alberta, and Camrose drivers must ensure that the policy they choose includes the mandatory coverage outlined below.
Liability coverage
Liability coverage protects the policyholder against the cost of accidental injury or property damage in the event they’re found at fault for a collision. Beyond covering the costs of medical expenses or vehicle repairs, liability coverage can also help with the cost of legal counsel and court fees if required. In Alberta, drivers must have a minimum of $200,000 in third party liability coverage at all times.
Accident benefits coverage
Accident benefits coverage comes into play when you, a passenger, or a pedestrian require medical attention following an accident. No matter which party is at fault for the collision, you can still recover compensation thanks to accident benefits coverage. When buying an auto insurance policy, remember to review the accident benefits section and understand the limits to this type of coverage (most policies provide a specific amount of coverage).
Direct compensation
If you suffer an injury or damage your vehicle after getting into an accident that wasn't your fault, direct compensation coverage can help you cover the costs. For this type of coverage, you file a claim directly with your insurance company to recover compensation (hence the name “direct” compensation).
Uninsured automobile coverage
This type of coverage protects you and any passengers in your vehicle if you’re involved in an accident with an at-fault driver who is uninsured or underinsured.
3 tips for young drivers in Camrose
Driving is a skill, and like any skill, it takes practice to perfect. So if you’re a young driver with limited experience behind the wheel, don’t get discouraged. With time and dedication, you will quickly grow into a confident driver. In the meantime, we’ve compiled a few tips to help young drivers in Camrose get used to the road.
Keep your eyes moving
Keeping your eyes on the road is important, but so too is being aware of your surroundings. And the only way to do this is by moving your eyes. Check your rear-view and side mirrors every few seconds and scan the lanes around you. A good driver is aware of what’s happening ahead of them, beside them, and behind them at all times. The more aware you are of other drivers, the less likely you are to get into a collision.
Enroll in driving school
Enrolling in driving school is one of the wisest decisions you can make as a young driver. Most driving schools in Alberta offer a mix of in-class instruction and practical driving experience. This ensures you become a well-rounded driver who knows the rules of the road and is confident behind the wheel. Plus, it provides a welcome opportunity to practice driving with someone other than your parents. Lastly, attending a driving school in Alberta can lower your insurance premium, which is especially important for young drivers whose premiums are typically quite high.
Give yourself space
The more space between you and other vehicles, the better. A general rule of thumb is to leave two car lengths between you and the vehicle in front of you. This way, if you have to stop suddenly, you have plenty of space to do so safely. Giving yourself extra space is especially important when driving at high speeds, such as on a highway, or in poor weather conditions, such as on a rainy, snowy, or foggy day.
Learn more about Camrose car insurance
To learn more about auto insurance in Camrose, get in touch today.
The BrokerLink team is always available to take your calls, emails, or chat with you in person at one of our many locations in Alberta.
We can explain the various coverage options available to you and help you compare quotes, all to ensure you find the perfect auto insurance policy.
We also offer free quotes to all Camrose drivers. BrokerLink specializes in providing accurate and competitive auto insurance quotes.
Get started today by giving us a call or using our online tool. It’s that easy!
Make BrokerLink your top resource for car insurance, and we promise you won’t be disappointed.
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