What factors affect Nova Scotia car insurance rates?
Insurance companies in Nova Scotia consider several factors when calculating insurance premiums. From a driver’s age and driving record to their marital status and location, insurers take all kinds of details into account. Nova Scotia drivers might find it helpful to know which factors matter so they can understand why their insurance premium is what it is. The most common factors impacting car insurance rates in Nova Scotia are as follows:
Driving history
One of the most significant factors used to determine the cost of car insurance in Nova Scotia is a person’s driving history. Driving history is a mix of one’s driving experience and driving record.
Typically, more driving experience is better, as a lack of experience is part of the reason young drivers tend to pay more for car insurance.
However, decades of driving experience does not guarantee a low premium, unless it is coupled with a stellar driving record. Your driving record is a history of any accidents or tickets you’ve received or infractions you’ve perpetrated. The goal is to have as few incidents as possible. When you have fewer incidents, this indicates that you are a safe, responsible, and lower-risk driver, and the insurance company may reduce your premium accordingly. Conversely, if your record has collisions and speeding tickets, you will likely pay more for Nova Scotia auto insurance.
Age
Insurance companies see a direct correlation between age and driving skills. When you are young, you naturally have less driving experience, which insurance providers believe puts you at a higher risk of getting into an accident. This is why new drivers tend to pay the most for car insurance in Nova Scotia. Another age group impacted is seniors over a certain age, who may also pay higher rates for car insurance.
Location
Location is another factor that all Nova Scotia insurance providers will use to determine your rates. Where you live and drive your car matters. Drivers who live in populous urban areas, like Halifax, are more likely to get into accidents since there is more traffic on the road. In contrast, drivers who reside in rural parts of the province with lower populations are considered less likely to get into a collision and may benefit from a reduced premium because of it.
Finally, if you live or work in a part of Nova Scotia prone to climate related incidents, such as floods, your insurance premium may be affected.
Vehicle, make, model, and year
The type of vehicle you drive can directly impact your insurance rate. Generally speaking, newer, more expensive vehicles will cost more to insure because the cost of repairing or replacing them is greater. The one exception to this is if the car is equipped with safety features, such as anti-theft devices or electronic security systems. On the other hand, budget-friendly, older, or used vehicles may cost less to insure.
How frequently you drive
Another factor that can affect your insurance rates in Nova Scotia is how frequently you drive your vehicle. For example, if you spend an above-average amount of time on the road (perhaps you have to drive for work), or you frequently drive at night and on major highways, your premium may be affected.
Alternatively, if you are an occasional driver who only drives on weekends or a few times each week, your insurance rates may be lower because your chances of getting into a collision are also lower.
Marital status
One final factor that Nova Scotia insurance companies may consider when calculating your car insurance premium is your marital status. Data suggests that married people are more responsible and financially stable, which insurers may take into consideration when calculating auto insurance premiums.
It’s important to note that insurance brokerages like BrokerLink do not set insurance rates. It is the insurance companies that calculate insurance premiums. While we do now have the power to raise or lower your premium, BrokerLink can certainly help you shop around, obtain quotes from the top insurance companies in Canada, and compare coverage to find the best policy for you.
