To get the best auto insurance rate possible, take a look at factors that affect auto insurance premiums highlighted by PartsAvatar Auto Parts
As Canadians, we are required to purchase auto insurance!! Since we pay premiums, it’s a good idea to understand what impacts auto insurance rates. - Brought to you by PartsAvatar Car Replacement Parts!!
Have you noticed that car insurance can vary quite a lot for the same kind of car depending on the insured and insurer?? Insurance is mandatory in every Canadian province, so there is no “opting out”.
If you add the annual cost of fuel and insurance together, which Canadian province will make your wallet the lightest? Ever wondered? What determines the rate you pay for car insurance? Here are some factors that car insurance companies can take into account while setting your rate.
Which Province is most expensive in terms of auto insurance?
Cost of auto insurance varies from province to province. Insurance fees, fuel prices, emission tests and registration fees all drive up the cost of owning a car. We will now discuss each province’s auto insurances depending on these factors.
PEI residents just pay $649 average to insure their vehicle. There insurance premiums are the envy of the nation. Newfound land also joins PEI in the category of cheap premiums. It is second cheapest province in terms of insurance and fuel.
Manitoba is also a cheapest non coastal province to own a car in. Relatively cheap gas and sane insurance rates make this a haven for cheap driving.
Nova Scotia’s costly gas keeps it from being cheapest province despite having cheap premiums. Despite having costlier gas than Alberta, Saskatchewan insurance premiums are cheaper and average cost of owning a vehicle is approx. $300 cheaper than in Alberta.
Quebec has second highest gas prices but its cheap auto insurance premiums make it cheaper than Ontario. Its insurance is $1000 cheaper than Ontario’s insurance rates.
New Brunswick despite having cheap fuel is much expensive in terms of premiums. BC has most expensive gas in Canada especially Vancouver where owning a car isn’t cheap at all. Alberta has cheapest gasoline rates in Canada but it still costs more to fuel and insure a car there. Though residents are not needed to undergo emission tests but still it is second most expensive province in Canada in terms of auto insurance and fuel.
Ontario’s has insurance rates that are miles higher than other provinces. In fact driving a car in Ontario can cost approx. $700 more than BC. Every test is mandatory!
After getting heartbreak due to these expensive insurance rates, read some factors that may help you in minimizing them!
Practise defensive driving
The number of at fault accidents in past six years heavily impact auto insurance rates. Insurance companies rate makes and models of vehicles according to their actual claim experience. They can look at the likelihood your car will be stolen or involved in an accident and how much it will cost to repair.
So, better practise defensive driving in order to reduce the chances of being considered at fault at the time of accident. Replace performance auto parts which are available at online stores like PartsAvatar.
The car you drive
Your vehicle is the major variable in determining your auto insurance rate. The kind of car you drive impacts auto insurance premiums gravely. For example, sports car is likely to have expensive insurance not because they are costly but because they are more likely to get in a wreck.
The average price to insure between a cheapest or costliest car is more than $500 annually. So, if you want to pay less, go for a cheap car like Toyota Corolla or Mazda 3. Moreover you can easily replace Toyota auto parts and Mazda auto parts at any online store depending on your make and model!
Where you live
Your location especially if you are a resident of Canada affects how much you are paying each year. You might have read above the different premium rates of provinces depending on various factors.
And if you live in Ontario, be prepared to pay high insurance rates. A lot of things impact rate like car theft history of that area, collision rates, fuel prices etc.
Many people move to places with cheaper insurance rates but mind you, your living expenses might increase drastically. In other words, you might be saving insurance money but in return will be paying premium to live there. So, think wisely!
Your age and gender
Mature drivers pay less than young drivers. This is because most young drivers are considered riskier than older drivers who are not only more experienced but also less likely to cause an accident. At 25 years old, drivers can see a decrease in their insurance premiums. The number of years that you have had your license can also affect the rates.
Similarly, women are considered less risky on road as compared to men. You may call it gender discrimination but it’s a fact that men drive faster and take more risk while driving than women.
Speed kills! Save money, opt for slow speed!
Discounts can also reduce auto insurance premiums. There are various discounts like in Ontario region winter tires come with discounts. You can ask for discount if you have multiple lines of insurance with one company, have good driving record or do well in school.
Other factors can be- profession, credit score, your gross or net worth and level of indebtedness, how long you’ve lived in your residence, whether or not you own a home, if your vehicle is owned, a bankruptcy or history of bankruptcy.
Ask your insurance company about any discount that you many apply for! It never hurts to ask.
Once you know what impact your premium rates, you can make better choices and save a lot of money.
Make sure to visit partsavatar.ca if you want to order aftermarket auto parts with free shipping facility for orders over $99. Here, we sell only the most durable original equipment and aftermarket auto accessories and parts in the auto parts industry.
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