Key factors that may affect your Grande Prairie car insurance rate
There are a number of factors that insurance providers take into account when calculating your car insurance rate. It’s important to understand how certain circumstances, such as your age, marital status, or the type of car you drive, can affect your car insurance premium. Keep reading to learn about some of the top factors used to calculate the cost of one’s auto insurance.
Driving history is one of the most important factors
While the factors above all come into play when calculating your Grande Prairie car insurance rate, there is one factor that is even more important: your driving history. Combining your driving experience with your driving record, your driving history is a clear indication of your risk level, in the eyes of auto insurance providers.
Having several years or even decades of driving experience is most welcome to car insurance companies. As discussed above, if you are a young driver who only recently got your driver’s license, then you likely have limited driving experience, which is why your insurance premium tends to be higher.
However, in addition to driving experience, you should also aim to have a clean driving record. Experience means nothing if your record is full of speeding tickets, collisions, or DUIs. To keep insurance premiums low, try to drive as safely as possible, which means driving the speed limit at all times and driving defensively rather than offensively.
Location
Your geographic location (where you live and work) is an important factor in calculating your car insurance. Although provinces dictate the general regulations about car insurance, rates vary depending on where in the province you live. Typically, your car insurance premiums increase if you live in or around high-density urban areas, and decrease if you live in low-density rural areas. This is because if you live in a major city, there is more traffic on the road which can increase your chances of getting into an accident.
Beyond population density, if you live in or frequently travel to parts of the province prone to climate related incidents, you may pay more for auto insurance.
Vehicle make and model
Every insurance provider will ask for the year, make, and model of your vehicle. This is because insurance providers have to analyze the likelihood of your car being stolen, and how much it would cost to replace or repair it. They can only do so by knowing these details. Generally speaking, the newer and more expensive the vehicle, the higher the odds are that someone will try to steal it and the more it will cost to replace if damaged or stolen. Therefore, the insurance premium for drivers of new or luxury cars is typically higher than for drivers of older, budget-friendly cars. However, insurance providers may take into account safety features and anti-theft devices, so if you have a new vehicle that’s equipped with these features, you may pay less for car insurance.
Age
Insurance companies claim that certain age groups may be at greater risk of getting into an accident, and car insurance premiums may reflect this. One age group that often sees higher premiums is young drivers, simply because they have little to no driving experience. On the flip side, the data reveals that as you age, your reaction time may be slower, and therefore some senior drivers will also have to pay more for auto insurance.
Annual mileage
The frequency with which you drive your car may also be taken into account by an insurance provider. If you drive your car very infrequently (once a week, or on weekends only), it’s worth mentioning this to your broker. From the perspective of the insurance company, if you do not drive your car very often, then you are less likely to get into an accident, and your insurance premium may be lowered accordingly.
On the other hand, if you drive all the time or frequently drive at night and on highways, then your odds of getting into a collision can increase, and so too can your insurance premiums.
Local laws
As mentioned above, auto insurance is provincially regulated, with each province setting a minimum requirement for coverage. For example, in Alberta, the laws around car insurance require motorists to carry $200,000 in third party liability coverage at all times.
Marital status
Insurance providers rely on data when calculating car insurance, and the data suggests that married people tend to be more financially stable and safer drivers. For this reason, married people tend to pay less than unmarried people for car insurance.
