How auto insurance rates are calculated
A number of factors impact how car insurance rates are calculated. A driver’s age, location, marital status, and driving record, along with the type of car they drive can all affect how much car insurance costs. Leduc drivers might find it helpful to understand how each of these details comes into play. We’ve outlined the top factors used to calculate auto insurance below.
Provincial laws
Each Canadian province has its own regulations surrounding car insurance, which include a minimum amount of coverage drivers are required to carry. The minimum coverage in some provinces is higher than others, and generally speaking, the greater the coverage, the more expensive the insurance.
Age
Nearly all insurance companies consider age to be a clear indication of risk. The younger a driver is, the less experience they have and therefore the more likely they are to get into an accident. This is why young drivers tend to have the highest premiums of any age group in Canada. Another age group that may see high premiums is seniors.
Location
Your geographic location can also impact how much you pay for auto insurance. Where you live and work (if you use your car to travel to work) will all be taken into account when determining your insurance rate. Typically, drivers who live in or near high-density urban areas like Calgary or Edmonton will pay more for car insurance than those who live in rural parts of Canada. This is because urban areas are more populated so more cars on the road can increase your odds of getting in an accident.
Further, if you live in a part of the province that is prone to climate related weather incidents, your car insurance rates may go up.
Type of car
The type of car you drive will also be considered when determining your insurance premium. You will be required to provide the make, model, and year of your car. Insurance companies will then use that information to determine how likely your car is to be stolen and how much it will cost to replace or repair it in the event of damage or theft. New, expensive cars, such as luxury sports cars, tend to cost more to insure. The one exception to this rule is if your new car is equipped with safety features and anti-theft devices.
Annual mileage
The amount of time you spend on the road is another factor insurance providers will consider. If you drive your car very infrequently (for example, once a week or on the weekends only), your insurance may be less due to a low mileage insurance policy. Alternatively, if you drive your car all the time, whether you have a long daily commute to work or your job involves transportation, your insurance premium may be higher.
Driving history
One of the top factors in determining the cost of car insurance is a person’s driving history. Driving history combines one’s driving experience and driving record. Having many years of driving experience can work to your advantage, assuming you have a clean record.
A clean record is one without speeding tickets, collisions, or DUIs. The more incidents you have on your record, the greater risk you pose and the higher your insurance premium will be.
If you focus on driving safely and following the rules of the road, your clean driving record will reward you by paying less for car insurance.
Car ownership duration
Another 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 final factor that may affect your car insurance rate is your marital status. Most insurance companies will ask about your marital status when providing an auto insurance quote. Why? Data suggests that on average, married people show behaviours that reflect being more responsible.
How to save money on Leduc car insurance
Car insurance can be expensive, which is why it’s important to understand what you can do to lower your rate. There are several ways you can save money on auto insurance. From purchasing an electric vehicle to enrolling in driving school, check out this list of tips for getting cheap auto insurance in Leduc.
- Purchase car insurance for multiple vehicles together (savings of up to 20%)
- Buy multiple insurance policies (home insurance, business insurance, etc…) 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
Partner with an insurance broker
If budget is a serious concern, we recommend contacting your local insurance broker. BrokerLink’s team of experienced insurance advisors is always on hand to help you find the best deal on car insurance. We are committed to finding our customers the best policy at the best rate. How? We are experts in the field of car insurance, which means we know where to find you the best deal. By partnering with a broker, you’ll have someone by your side to answer any questions you may have, compare quotes on your behalf, and inform you about discounts you may be eligible for. At the end of the day, working alongside a broker is one of the best ways to reduce the cost of car insurance in Leduc.
Mandatory car insurance in Leduc
Is car insurance required in Leduc? The short answer is yes. The provincial government of Alberta has made car insurance mandatory for all drivers in the province, including Leduc. Therefore, every registered vehicle in Leduc must be insured. And not just any insurance will do. Rather, your car insurance must meet the minimum coverage requirements set by the province. For example, the government of Alberta stipulates that motorists must have car insurance that includes a minimum of $200,000 in third party liability coverage.
What are the consequences of driving without insurance in Leduc?
The consequences of driving without car insurance in Alberta are serious, which is why we strongly encourage Leduc drivers to comply with the law by purchasing auto insurance.
For a first offense in Alberta, an uninsured motorist can be fined a minimum of $2,875 up to a maximum of $10,000. Failure to pay this fine can result in jail time ranging from 45 days to 6 months.
For a second offense, the minimum fine for driving without insurance is $5,000, and the maximum fine is $20,000. Again, failure to pay the fine can result in jail time lasting anywhere between 60 days and 6 months.
These hefty fines coupled with the threat of jail time mean that driving without insurance in Leduc is simply not worth the risk.
Compulsory coverage in Leduc
There are many elements to car insurance policies. From liability to direct compensation, auto insurance consists of several distinct types of coverage. The mandatory coverage, which we outline below, was designed to protect all drivers and passengers on the road. It is required no matter how often you drive your vehicle or whether you lease or own your vehicle.
Liability
Liability coverage aims to protect the policyholder against the cost of bodily injury or property damage in the event they’re found at fault for an accident. It can also help cover the cost of legal counsel and court fees if required. Liability coverage is a compulsory element of car insurance in all Canadian provinces, though the minimum amount varies by province. In Alberta, drivers must carry $200,000 in third party liability coverage at all times.
Accident benefits coverage
Accident benefits coverage offers protection if you, a passenger, or a pedestrian require medical attention following a collision. No matter which party is deemed at fault for the accident, you can still seek to recover compensation through accident benefits coverage. When purchasing a car insurance policy, be sure to review this coverage and understand its limits (most policies provide a specific amount of coverage).
Direct compensation
Direct compensation offers coverage should you suffer an injury or if your car is damaged in an accident that was not your fault. For this type of insurance, you file a claim directly with your insurance company to receive compensation (hence the name “direct” compensation).
Uninsured automobile coverage
This type of coverage protects you and any passengers in your vehicle if you get into an accident with an at-fault driver who is uninsured or underinsured.
Why choose a Leduc insurance broker
Leduc drivers can derive several benefits from partnering with an insurance broker.
First, we all know how tedious and overwhelming shopping for insurance can be. If you decide to use an insurance brokerage, the broker will do all the legwork. From browsing coverage options to comparing quotes, BrokerLink’s team of insurance advisors will work tirelessly to find a policy that’s right for you.
Plus, all BrokerLink insurance advisors are experts in the field of car insurance. This means they can answer any questions you may have, explain complicated industry jargon to you, and provide you with an objective opinion on which policy to choose.
Partnering with a local broker has tons of advantages. Namely, customers have access to their resources and expertise, which not only saves you valuable time but also money.
Tips for new drivers in Leduc
Driving doesn’t come easy to everyone. Just like riding a bike, driving is a skill that takes time, patience, and practice to master. As a first-time driver, it’s completely normal to be nervous. Just remember that the more time you spend behind the wheel, the more comfortable and confident you will become. To make those first few driving experiences easier, we’ve compiled a list of tips for new drivers in Leduc.
Check your mirrors
A good driver knows that they should always be aware of their surroundings. The key to this is checking your mirrors. Be sure to check your rear-view and side mirrors every five seconds. In addition, rather than keeping your eyes focused on the car in front of you, scan the entire road, noting the cars on either side of you and up ahead in all lanes. The more aware you are of other drivers, the less likely you are to get into an accident.
Attend a driving school
Whether you’re a new driver or simply need a refresher, consider enrolling in a driving school. There are driving schools all over Alberta that can help you hone your practical driving skills and learn the rules of the road. Plus, enrolling in driving school will give you a chance to practice with someone other than your parents, which can be nerve-wracking. An added bonus of driving school is that for young drivers, attending such an institution can help to lower your insurance premiums.
Leave ample space
The more space you have around you, the better. A general rule of thumb is to leave two car lengths between yourself and the vehicle in front of you. This way, if you have to stop suddenly, you have enough room to do so without hitting the car in front. Note that if driving at higher speeds, such as on a highway, or in poor weather conditions, such as fog, snow, or rain, you should aim to leave even more space between vehicles.
Get in touch and receive a free Leduc car insurance quote today
BrokerLink is pleased to offer complimentary auto insurance quotes to all Leduc drivers. Whether you’re a new driver buying their first-ever car insurance policies or a seasoned veteran whose existing policy is up for renewal, we can help.
Get in touch today and learn more about the various car insurance options available to you. Give us a call, email, or visit us in person at one of our many locations in Alberta.
Alternatively, you can get started now by requesting a quote online. Click “Get a quote” in the top right-hand corner of this webpage, fill out some basic information about yourself and your vehicle, and you’ll receive a free car insurance quote in just five minutes!
BrokerLink specializes in providing accurate and competitive quotes. Plus, all quotes are 100% obligation-free, so you have nothing to lose by requesting a free auto insurance quote today.
Make BrokerLink your go-to resource for car insurance, and we promise you won’t be disappointed.
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