What determines New Brunswick car insurance rates?
Many factors determine how much New Brunswick drivers pay for auto insurance. Your location, marital status, driving history, annual mileage and more, can impact your insurance premiums. New Brunswick drivers might find it helpful to know how each of these details can affect the cost of your auto insurance policy. To learn more about how insurance providers calculate car insurance premiums, keep reading.
Driving history
One of the most important factors in determining the cost of an auto insurance policy is a person’s driving history. Driving history takes into account both driving experience and driving record. Having several years, or even decades, of driving experience can work to your advantage, but only if you have a relatively clean record.
A clean record is free from speeding tickets, collisions, and DUIs. Those with clean driving records may save money on car insurance, whereas drivers with records that include several incidents will likely pay a higher premium.
Similarly, those with minimal driving experience, such as young drivers who only recently obtained a driver’s license, may also pay a higher premium as detailed further below.
Age
From an insurance provider’s perspective, age is a key factor in calculating your auto insurance rate because age can be an indication of experience. For example, the younger you are, the less driving experience you have, and the more likely you are to get into an accident. For this reason, young drivers typically pay the most for auto insurance. Another age group that may see higher rates are drivers over the age of 60.
Provincial laws
The cost of car insurance also depends on the amount of coverage you choose. Each Canadian province sets its own regulations relating to auto insurance, including the minimum amount of coverage required. For example, in New Brunswick, drivers are legally required to carry $200,000 in third party liability coverage at all times. However, many drivers will choose to carry more than this, which can increase the cost of auto insurance.
Location
Where you live and work (if you drive to work) will directly impact what you pay for car insurance. Typically, drivers that live in or frequently travel to large cities, such as Fredericton, Moncton, or Saint John, will pay a higher premium than those who live in rural areas. High-density areas translate to more traffic, which in the eyes of the insurance company, increases your chances of getting into a collision.
Another geographic factor that can influence the cost of auto insurance is if you live in an area prone to climate related incidents, such as flooding.
Car make, model, and year
To purchase a car insurance policy, you must provide details on the type of car you drive. Such details include the make, model, and year of your vehicle. These factors help insurance companies determine how likely it is that your car will be stolen and how much your vehicle would cost to repair or replace if damaged or stolen. Typically, insurance premiums are higher for drivers of new or luxury vehicles, such as sports cars, and lower for drivers of older or used cars. However, if your car is new but is equipped with safety features or anti-theft devices, the insurance company may take this into account.
Annual mileage
How frequently you drive your vehicle is another factor that can impact your New Brunswick auto insurance rate. If you drive very rarely, such as once or twice a week or only on weekends, you are less likely to get into an accident and your insurance rate may be lower.
Conversely, if you spend a lot of time behind the wheel (perhaps your job requires it or you have a lengthy daily commute to work), then your odds of getting into an accident rise, along with your insurance rate. The same can be said for drivers who frequently drive at night and on major highways.
Marital status
Lastly, insurance providers may ask you about your marital status when providing you with a New Brunswick car insurance quote. Why? Data suggests that married people are more financially stable and responsible, which insurance companies believe translates to better driving. It might not seem fair, but the reality is that married drivers tend to pay less for car insurance than their single counterparts.
