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5 factors that affect the price of your car insurance

How do insurers set up your auto insurance premium? Are there ways to reduce it? Generally, the higher the risk and the cost of settling a claim, the more expensive your premium will be. Here are five factors that determine the amount of your car insurance.

5 key factors considered by insurers to calculate auto insurance premiums.

1. Driving record

A blank driving record results in a lower premium. If you have already caused accidents, you represent a risk to your insurer. In addition, you will probably pay more if you have received more than one speeding ticket or dangerous driving in the last 3 years.

2. Mileage and travel

If you live or drive in town, your insurance will be more expensive. The reason is simple: car thefts are more common in the city, and more traffic leads to more accidents. Finally, the more time you spend behind the wheel, the greater the risk of being involved in an accident.

3. Make and model of the vehicle

Insurers set different rates based on brands and vehicle models. They assess the risk of your car being stolen or damaged in an accident and trying to estimate the cost of any repairs. If you want a less expensive vehicle to insure, check out Insurance Bureau of Canada’s Differences Between Cars page. Normally, fares are higher when it comes to a new vehicle or a sports car, but built-in safety features can reduce the premium.


The deductible is the amount you have to pay if you submit a claim. The smaller your franchise, the higher your premium will be. If you have submitted a lot of claims, your insurer could increase the cost of your deductible.

5. Amount and type of protection

In general, the more protections you add (basic or optional), the higher your premium. Most of the time, you can customize your font to suit your needs. For example, you might decide to enhance your liability coverage or increase your deductible. You may also wish to add or remove warranties, such as the collision and rollover guarantee (which protects you against damage to your vehicle, whoever is liable) or the all-risk warranty except for collision or rollover (which protects you against theft, vandalism, hail or explosions).

How to save on your premium

Shop around and compare to find the best coverage at the best price by requesting quotes from different insurers. However, be sure to always include the same protections and the same deductibles from one insurer to another.
Ask your insurer to tell you about their discounts. Some insurers offer you discounts if you have an anti-theft system, a good driving record or several vehicles insured at home. You can also save money by insuring your car and home in one place.

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