Let’s face it, if you own a car, there is no way around it – you need car insurance.  And if you’re like most people, you need the best insurance for the best price. Car Insurance rates vary based on a variety of factors. Knowing how car insurance premiums are calculated can help you better control the cost of your insurance. Here’s some straight talk on car insurance, with a brief summary of key factors that affect car insurance rates.

Key Factors that Determine Car Insurance Rates.

• Size and performance of your vehicle. Smaller cars can cause your premium to be higher because they sustain more damage in collisions. High-performance vehicles, such as sports cars, tend to be driven more aggressively and therefore often incur a higher premium.
• Value and age of your vehicle. The more expensive and newer a car is, the higher the premium.
• Vehicle usage and location. The more kilometres your vehicle has travelled, the higher the premium. Additionally, where you drive and store the vehicle affects your rates as well. If you are in a more densely populated area, with a higher risk of theft or accidents occurring, your premium will also be higher.
• The driver’s age and gender. Statistically, younger drivers are at a higher risk of getting into an accident than older drivers. Additionally, studies show that males under the age of 25 get into more collisions than females. Some provinces adjust premiums for different statistical groups to reflect these findings.
• Your driving record. Drivers with past claims are more likely to have future claims. Because of this, your driving history directly affects your auto policy rates.
• Your deductible. If you choose to pay a higher deductible, your premium will be lower. Keep in mind that this means you need to have more cash on hand if an accident occurs.

Tips for Keeping Your Car Insurance Premium Lower.

OK, so what can you do about your rates? Many car insurance companies offer discounts based on your vehicle’s safety features, such as anti-lock brakes or anti-theft devices, or for having multiple cars on one policy. Your behaviour as a driver can also impact your rates. Here are some tips to consider:

1. Research before you purchase. Find out how the size, performance, value, and age of the vehicle you are looking to purchase will affect your premium compared to other vehicles you may be considering.
2. Choose a higher deductible, but make sure to stay within your means.
3. Don’t drive while under the influence of drugs, alcohol, or fatigue. Never text and drive. Avoiding these behaviours will lower your chances of getting into an accident, which will help your driving record stay clean and your premium low.
4. Drive defensively.
5. Drive less. Walking, riding your bike, or taking alternative transportation could help you qualify for an infrequent driving discount.
6. Consider purchasing a car with more safety features.
7. Install an anti-theft device. This is an easy way to deter one type of car emergency that would raise your premium.
8. Keep your credit in good shape.
9. Consider excluding high-risk drivers in your household from your policy. If you choose to do this, make sure these drivers do not get behind the wheel of your car.
10. Ask your Bauld Insurance Advisor about multi-policy discounts.

Learning about how car insurance rates are determined helps you navigate varied rates, make smart car-buying decisions and control the cost of your insurance. If you have questions about your car insurance premium, request a car insurance quote or contact a Bauld Advisor today.