How Rates are Determined
Insurance plans in Canada can change from location to location, so Canadian insurance agencies will look at every single independent factor and put them all together. One thing that stays constant is your driving history: a good record will always mean a lower insurance price. If one has a history of accidents, speeding tickets or other citations, he or she will most likely have to pay more for car insurance cover than someone with a clean driving record, or with a very minimal number of the aforementioned scenarios.
Insurance cover quotes will also vary depending on the accessories one has in his or her vehicle. You're able to save additional money for features like anti-theft sound alarms and extra airbags. In addition, younger people typically pay more for car insurance than mature individuals, and women are generally able to acquire lower rates than men. These rates are based on statistics that show younger, inexperienced drivers are more apt to become involved in accidents or acquire citations than mature drivers. Similarly, statistics show that men drive more aggressively than women and tend to speed more often, making them a higher risk, as well.
Insurance for New Vehicles
When it comes time to purchase a car, one must carefully consider the various pros and cons with regard to an used vehicle versus a new car that requires financing through a bank loan. The make, model, and year of a car are three details which have a notable impact on insurance rates. There are several reason for this, including the simple fact that if a brand new vehicle is involved in an accident, it will be more costly to repair than an older car. Similarly, a sports car or luxury car will cost more to repair than a standard model. In addition, newer cars are more often targeted for theft and are costly to replace if the insurance company must do so. Therefore, insurance agencies typically charge more to insure such vehicles than they charge to insure older cars.
Another fact to which some thought must be given is that cars which are brand new must usually be purchased through a finance company. The finance company in such a case will require that one have full cover on his or her automobile, meaning liability, collision, comprehensive, theft, vandalism, and cover for uninsured drivers. If one buys an used car that can be paid for with cash, he or she will have the option of purchasing only the minimum insurance required under Canadian law, which is usually basic liability. However, for a new car that must be financed, one must obtain the full cover as previously mentioned. With this in mind, it may be wise to consider if a new car is an absolute necessity, and if not, one may wish to purchase an used car for which onlx the minimum insurance cover is required.
Tips for Reducing the Cost of Insurance on a Financed Car
Those who prefer to drive a new car do not have to resign themselves to paying extraordinarily high insurance premiums. There are several ways in which one can save money on the cost of a policy for a financed car. For instance, the aforementioned safety devices such as a car alarm or a GPRS system can cut insurance costs considerably, as theft is a key issue of concern for an insurance company. Additionally, if one does minimum driving, such as an individual who works from home and has no hectic commute five days a week, he or she should apply for a low mileage discount.
If you want to get even more discounts on auto insurance, be sure to take a driver's education course and that can really help you lower your insurance rates. In addition, one should comparison shop before making a final decision on a policy, as this is the best way to ensure that the most suitable and cost-effective policy will be found.
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