What factors determine Kitchener car insurance rates?
Canadian insurance companies take several factors under consideration when calculating insurance premiums. A driver’s age, marital status, driving record, and location can all influence how much car insurance costs. Kitchener drivers might find it helpful to know these factors so they can understand why their insurance premium is what it is. Without further adieu, some of the most common factors that determine car insurance rates in Kitchener are as follows:
Driving history
One of the main factors used to determine the cost of auto insurance is a person’s driving history. Driving history consists of driving experience and driving record.
More driving experience may result in lower premiums. It is a lack of experience that raises the insurance premiums for young drivers.
However, experience alone does not equal lower car insurance rates. Rather, drivers must possess adequate driving experience and a clean driving record. If you drive the speed limit and generally obey the rules of the road, you are likely to have a clean driving record. But if you speed, drive recklessly, or drive under the influence of drugs or alcohol, then you are far more likely to have a poor driving record rife with tickets, accidents, DUIs, and demerit points.
Kitchener drivers with stellar records are often rewarded for it by paying less for car insurance. So the best thing you can do to save money on Kitchener auto insurance is to maintain a clean record by driving safely and responsibly.
Age
From an insurance provider’s perspective, there is a direct correlation between age and driving skills. Therefore, the younger you are, the less driving experience you have, and the greater risk you pose on the road. This is why new drivers often pay the most for auto insurance in Kitchener. Another age group impacted is the elderly, with seniors over the age of 60 often paying higher rates for auto insurance.
Location
When calculating your auto insurance rate, an insurance provider will ask for your address. Why? Location matters. Where you plan to drive your vehicle affects your risk level. Drivers who live in populous urban areas, such as the Greater Toronto Area, are more likely to get into accidents given the increase in traffic. In contrast, drivers who reside in rural parts of Canada with less traffic are viewed as less likely to get into an accident and may receive a cheaper rate because of it. Lastly, if you live or work in an area prone to climate related incidents, such as floods, your insurance premium may be affected.
Vehicle, make, model, and year
Did you know that the car you drive can impact your insurance rate? It’s true. Typically, newer, more expensive cars cost more to insure. This is because such cars are at a greater risk of theft, and if stolen (or even damaged in a collision), it would cost the insurance company more money to replace or repair them. The exception to this rule is if your car is equipped with anti-theft devices or other safety features.
How frequently you drive
How frequently you drive is another factor that can impact your insurance premiums. For example, if you have to drive every day as part of your job, or you drive at night and on major highways frequently, you will likely pay more for car insurance.
However, if you are an occasional driver who only drives on weekends or a couple of times per week, your insurance premiums may be lower because your odds of getting into an accident are also lower.
Marital status
Marital status is one last factor that can influence your Kitchener car insurance rate. Data suggests that married people are more responsible and financially stable, which insurance companies take into consideration when calculating insurance premiums.
