Car insurance Lethbridge

How auto insurance rates are calculated in Lethbridge

There are a number of factors that determine the cost of your insurance premium in Lethbridge. From the exact location of your home and workplace to your age, marital status, and annual mileage, keep reading to discover some of the top factors that will affect how your car insurance rate is calculated.

Type of car

Believe it or not, the make and model of your vehicle can play a role in determining your car insurance rate. This is because insurance providers believe there is a direct correlation between the type of car and the likelihood of it being stolen. They must also consider how much your car would cost to repair or replace, should it be damaged or stolen. In general, the newer, more expensive the car, the higher the insurance rate will be. The one exception to this is if you have a new car that is equipped with multiple safety features and anti-theft devices.

Age

According to insurance providers, certain age groups may be at greater risk of getting into an accident, for example young drivers with limited driving experience.. Ultimately, if the data shows that someone of your age is more likely to get into an accident on the road, you may have to pay a higher premium.

Annual mileage

How often you drive your car can also impact your auto insurance rate. If you do not drive your car frequently (for example, you only drive it on the weekends), then insurance companies may consider you to be less at risk of getting into an accident and lower your insurance premiums accordingly.

On the flip side, if you are constantly driving or frequently drive overnight and on highways, the odds of getting into a collision increase, along with your insurance premiums.

Provincial laws

Car insurance is regulated at the provincial level, with each province responsible for setting a minimum requirement for coverage, for example, in Alberta, drivers are legally required to carry $200,000 in third party liability coverage. However, many Lethbridge motorists will choose to purchase a policy with a greater amount of coverage.

Geographic location

Where you live, as well as where you work (if you drive your car to and from your workplace), is a major factor in calculating your car insurance. As mentioned above, each province sets the general regulations on car insurance, however, given the vast size of most Canadian provinces, rates can also vary within them. For example, your premiums may be higher if you live in a high-density urban area, whereas they may be lower if you live in a rural area.

Another geographic factor that may influence how your Alberta auto insurance rate is calculated is if you live in a part of the province prone to climate related incidents, such as floods.

Marital status

Some insurance providers use marital status to determine the cost of car insurance. Insurance companies rely on data, so if the research shows that unmarried drivers are more accident-prone than married drivers, then unmarried drivers may have to pay a higher insurance premium.

Your driving history matters

While the factors above are crucial to determining the amount you pay for car insurance, there is one other factor worth discussing: driving history. Your driving history is arguably the most important variable when it comes to car insurance.

First off, the more driving experience you have, the better. If you are young and have only been driving for a short time, your insurance rates are likely to be higher because you lack experience.

However, experience in and of itself does not equal lower insurance premiums. In order to qualify for the best possible car insurance rate, you should aim to have a clean driving record. A history free of tickets, accidents, or DUIs will convey to the insurance providers that you are a safe and responsible driver who drives the speed limit and drives defensively (as opposed to offensively).

At the end of the day, Lethbridge motorists with stellar driving records are far more likely to receive a lower insurance rate than those with a history of speeding or accidents. It’s worth noting that having an accident on your record, whether you were ultimately deemed at fault for the accident or not, can result in a higher premium..