How Red Deer auto insurance rates are calculated
Many factors impact the cost of car insurance in Red Deer. A driver’s age, location, marital status, annual mileage, and driving record, along with the type of vehicle they drive can all impact auto insurance rates. Red Deer drivers might find it helpful to learn about the most common factors affecting insurance premiums in Alberta, so we’ve compiled the list below.
Provincial Laws
Each Canadian province has 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. For example, in Alberta, drivers must carry $200,000 in third party liability coverage at all times.
Age
Nearly all Red Deer auto insurance companies will include your age to determine your premium. The younger a driver is, the less experience they have and therefore are more likely to get into an accident. This is why young drivers often pay the most for car insurance. People of a certain age past 60 are part of another age group that may pay more for car insurance based on statistics.
Driving history
Another of the most common 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 years or decades of driving experience can work to your advantage if 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 more likely it will be reflected in your premiums. Please note that traffic tickets usually remain on your record for three years, which means you could pay a higher premium for all three years.
If you focus on driving responsibly and obeying the rules of the road, your driving experience and clean driving record will likely reward you with a reduced car insurance rate.
Location
Your geographic location can also impact how much you pay for auto insurance, which is why Red Deer auto insurance companies will ask for your address. Generally, 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 which translates to more traffic, which raises a driver’s odds of getting in a collision. Furthermore, if you live in a part of the province that is prone to climate related weather incidents, your car insurance rate could be impacted.
Type of vehicle
The make, model, and year of the car you drive is another common factor used to determine your insurance premium. Red Deer auto insurance companies will use this information to assess 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, whereas older, affordable models may come with cheaper car insurance. The one exception to this rule is if you have a new or expensive vehicle that is equipped with state-of-the-art safety features and anti-theft devices.
Annual mileage
The amount of time you spend on the road is another factor insurance providers will take into account. If you rarely drive your vehicle, your insurance may be less. Conversely, if you spend an above-average amount of time on the road - perhaps you have a long daily commute to work or your job involves transportation - then your insurance premium may be higher. The same goes if you spend a lot of time driving at night, on major highways, or during rush hour.
Car ownership duration
How long you’ve owned your vehicle is another factor that Red Deer auto insurance companies may consider. If you’ve been driving the same vehicle for many years without incident, the insurance company will see this as a green flag and may lower your premium as a result. This is especially true if multiple people in your household have shared the same vehicle for years and have maintained clean driving records during this time. On the other hand, if you purchase a new car each year or every member of your household has their own car, you could pay more for auto insurance.
Marital status
One last factor that may affect your car insurance rate is your marital status. Statistics suggest that married couples are more responsible, so this factor may be considered when your insurance premium is calculated.
