Factors that may impact your auto insurance rate
Insurers consider a wide range of factors when calculating insurance premiums. While insurance providers may weigh each factor differently, certain details are typically taken into account. Such details include a driver’s age, location, and driving record. To learn more about the factors affecting car insurance rates in Spruce Grove, keep reading.
Provincial laws
Each Canadian province and territory has its own regulations on auto insurance, which include a minimum amount of coverage drivers are required to carry with them at all times. The minimum coverage varies from province to province, but generally speaking, the higher the coverage, the more expensive the insurance.
Age
When calculating your insurance premium, nearly all providers will ask for your age. This is because insurance companies believe there is a direct correlation between age and risk level. From the perspective of the insurance provider, the younger a driver is, the less driving experience they have, and the more likely they are to get into an accident. For this reason, young drivers often pay the highest premiums. Another age group that may experience high insurance premiums is seniors of a certain age.
Location
Where you live and work in the province can also impact how much you pay for auto insurance. For example, if you live in or near an urban area, your insurance premiums will be affected because there is more traffic on the road, which increases your chances of getting into an accident. Oppositely, those who reside in rural areas may pay less for car insurance because there is less traffic and therefore the chances of getting into an accident are lower.
Another geographic factor that can influence your car insurance rate is if you live or work in an area prone to climate-related weather incidents, such as floods.
Annual mileage
How frequently you drive can also affect your car insurance rate. If you rarely drive your car (perhaps you only drive on the weekends), then your rates may be lower due to a low mileage insurance policy. From the insurance company’s perspective, the less time you spend on the road, the less likely you are to get into an accident.
Conversely, if you’re constantly on the road (perhaps you have a long daily commute, you use your car for work, or you frequently drive at night or on the highway), then your insurance premium may go up.
Vehicle ownership duration
How long you’ve owned your vehicle is yet another detail that insurance companies may consider when calculating your insurance rate. On the declarations page of the insurance policy, you are required to list the names of anyone else who drives your car (this is typically a spouse or teenage/adult child). If multiple people have shared the same vehicle for years without any incidents, this speaks to your driving skills and responsibility, and your insurance premium may be lowered. Oppositely, if you purchase a new car each year and all members of your household have their own cars, you may pay more for auto insurance.
Driving history
Driving history is one of the most important factors in determining how much Spruce Grove drivers will pay for car insurance. Driving history consists of one’s driving experience and record. The more experience you have on the road, the better, as experience can be indicative of skill level. It’s a lack of driving experience that affects premiums for young drivers.
However, having years or even decades of driving experience under your belt isn’t enough to lower your insurance premium. This experience must be coupled with a clean driving record. A clean driving record means a record without tickets or, accidents. If your record is clean, this shows the insurance provider that you are a safe and responsible driver, and you may pay less for car insurance as a result.
In contrast, if your driving record has speeding tickets, DUIs, and collisions, you are considered at higher risk and your premiums may be affected
Thus, the best thing you can do is keep your driving record clean by driving the speed limit and obeying the rules of the road.
Marital Status
One last factor used to determine car insurance rates for Spruce Grove drivers is marital status. Why? Data suggests that married people are more financially stable and responsible, which insurance companies believe translates to better driving skills. This is why, on average, married drivers tend to pay less for car insurance than single people.
How to get cheap car insurance in Spruce Grove
Never pay more for auto insurance than you have to by following the tips below. From reviewing coverage annually to enrolling in driving school, there are several ways that drivers of all ages can minimize how much they spend on car insurance. Our top tips for getting affordable car insurance in Alberta are as follows:
- Purchase car insurance for multiple vehicles together (savings of up to 20%)
- Buy multiple insurance policies (home insurance, leisure vehicle 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 a trusted insurance broker
Is car insurance compulsory in Spruce Grove?
Yes, auto insurance is mandatory throughout the province of Alberta, including Spruce Grove. In Canada, the government of each province and territory gets to decide whether auto insurance is compulsory. The government of Alberta legally requires motorists to hold valid, up-to-date car insurance at all times.
Further, Spruce Grove drivers must have car insurance that complies with the minimum coverage requirements set by the province. For example, in Alberta, drivers must carry a minimum of $200,000 in third-party liability coverage.
What happens if I drive without insurance in Spruce Grove?
Spruce Grove motorists may choose to drive without insurance, however, doing so would mean breaking the law. As car insurance is mandatory in Alberta, driving without it is illegal and if caught, could mean a serious fine and even jail time.
For the first offence in Alberta, an uninsured motorist can be fined a minimum of $2,875 up to a maximum of $10,000.
For a second offence, the minimum fine is $5,000, and the maximum fine is $20,000. Failure to pay any fines incurred can result in jail time ranging from 45 days to 6 months for a first offence and 60 days to 6 months for a second offence.
To avoid the severe consequences of driving without insurance in Spruce Grove, we recommend complying with the law by purchasing an adequate car insurance policy as soon as possible. If you have any questions about mandatory car insurance in Alberta, contact your local broker who will ensure you find a policy that meets your needs and complies with provincial law.
Mandatory elements of car insurance in Alberta
Car insurance policies are composed of many elements, some of which are mandatory in the province of Alberta. From third-party liability coverage to accident benefits coverage, knowing the four types of required coverage is crucial to ensuring your car insurance complies with the law. To learn more about the protection that each type of mandatory car insurance coverage offers, keep reading.
Liability coverage
Liability coverage protects the policyholder against the cost of bodily injury or property damage in the event they’re found at fault for a collision. In addition to covering the costs of medical expenses or car repairs, liability coverage can also help pay for any applicable court or legal fees. As mentioned above, Alberta drivers must carry a minimum of $200,000 in third-party liability coverage at all times.
Accident benefits coverage
Accident benefits coverage is relevant if you, a passenger, or a pedestrian require medical attention following a collision. No matter which party is at fault for the collision, you can still recover compensation owing to accident benefits coverage. When buying car insurance, review the accident benefits section closely to understand the limits of this type of coverage.
Direct compensation
If you suffer an injury or damage to your car after getting into an accident that wasn't your fault, direct compensation can help you cover the costs. For this type of coverage, you file a claim directly with your insurance company to recover compensation.
Uninsured automobile coverage
Uninsured automobile coverage protects you and any passengers in your car if you get in a collision with an at-fault driver who is uninsured or underinsured
Top four tips for young drivers in Spruce Grove
Driving is a skill, and like any skill, practice makes perfect. So if you are a new driver with limited experience on the road, don’t get discouraged. With time and patience, you can become a safe and confident driver. In the meantime, we’ve put together a list of 4 tips to help young drivers in Spruce Grove adjust to the road.
Keep your eyes moving
Keeping your eyes on the road is important, but so too is being aware of your surroundings. And the only way to do this is by actively shifting your eyes every few seconds. Check your rear-view and side mirrors, scan the lanes around you and take note of any hazards on the road. A good driver is aware of what’s happening ahead of them, beside them, and behind them at all times. The more aware you are of other vehicles, the better off you will be.
Attend driving school
Enrolling in driving school is one of the smartest decisions you can make as a young driver in Spruce Grove. Many driving schools in Alberta offer a combination of in-class instruction and practical driving experience. This can help you to become a well-rounded driver who knows the rules of the road and is comfortable behind the wheel. Plus, it offers an opportunity to practice driving with someone other than your parents, which can be nerve-wracking for young drivers. Lastly, attending driving school can lower your car insurance rate, which might be especially important for young drivers whose premiums are typically quite high.
Give yourself space
The third piece of advice? Give yourself extra space on the road. The more space between you and other vehicles, 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 plenty of room to do so safely. Giving yourself extra space is crucial no matter the road conditions, but is particularly important when driving at high speeds or in poor weather conditions.
Drive slowly
One final tip is to slow down. Driving is not a race. So slow down, drive the speed limit, and take your time when manoeuvring (changing lanes, turning, parking) and when braking and accelerating. Driving slowly is especially important when entering a construction zone or during harsh weather, such as snow, ice, rain or fog.
Why choose a Spruce Grove insurance broker
Spruce Grove drivers can gain several benefits from partnering with an insurance broker.
First and foremost, insurance brokers do all the hard work. So while you’re relaxing or spending time with your family, we’ll be browsing coverage options, obtaining and comparing quotes, and unlocking discounts. We make shopping for car insurance easier than ever before.
Plus, insurance brokers at BrokerLink specialize in finding solutions for customers. We don’t work for insurance providers, so you can always count on us to offer our unbiased and objective opinions on to the best policy for you and your family.
Finally, BrokerLink’s insurance advisors are experts in the field of car insurance and will be able to find you a car insurance policy that meets your needs in no time.
Save yourself the time and stress of shopping for car insurance alone by contacting BrokerLink today.
Get in touch to learn more about Spruce Grove car insurance
To learn more about Spruce Grove car insurance, contact BrokerLink today.
Whether you want to discuss your coverage options, learn more about mandatory car insurance in Alberta, or get a free quote, the BrokerLink team is here.
We are available to take your call, respond to your email, or chat with you in person at one of our many locations throughout Alberta.
BrokerLink also offers free car insurance quotes to Spruce Grove drivers, which can be obtained using our online calculator.
Please note that all BrokerLink car insurance quotes are accurate, competitive, and most importantly, obligation-free.
Why wait? Kickstart your car insurance journey by contacting BrokerLink today. We can’t wait to hear from you!
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