What Determines Your Car Insurance Premium

What Determines Your Car Insurance Premium

Each driver pays a different amount of money for their auto insurance premium to cover the cost of an accident or theft that may occur to a vehicle. Although the driver can determine how much they want to pay by obtaining an insurance quote from different companies, there are still a number of factors that influence the premium. To understand why you pay a specific amount for your car insurance Ontario, there are a few important factors that are taken into consideration.

Where You Live

The city that you live in will determine how much you pay in insurance due to the amount of people who are on the road in the local area. If there’s a higher level of crime or theft in the city, you can expect to pay more throughout the year because your vehicle is at a higher risk of being stolen or broken into. If you move to a rural area that is less populated, you can expect to pay less. Insurance premium is also highly regulated by the government which can affect the premium based on regulations in the current city.

The Car You Drive

The vehicle that you choose to drive is one of the main factors that determines your car insurance premium. The insurance company will evaluate the safety ratings of the vehicle, which can influence the risk of becoming injured during an accident.

Cars that are brand new will also cost more to insure because the parts are more expensive to replace. Vehicles that only have two seats will also increase the premium because car insurance companies assume that the vehicles will be driven at higher speeds compared to sedans.

Your Driving Record

Car insurance companies will first evaluate your driving record before offering you a quote. They want to see how responsible you are as a driver, which will influence your risk of getting into a collision. You may receive a discount if you have a clean driving record for the past few years. The longer you go without an accident, the more your premium will decrease over time. While other factors can play a significant role in your premium, your own personal driving record has the largest influence!

How Often You Drive

Drivers who spend more time on the road throughout the week will end up paying more because they’re at a higher risk of an accident occurring. The distance that you drive will also influence the premium even if you’re a safe driver and have a clean history. You’ll be asked how many miles you drive each year when receiving a quote.

Your Age, Sex, and Marital Status

Although it may not seem to matter, auto insurance companies charge more for insurance for male drivers because they’re more likely to get into an accident than females. Single males are also more likely to get into a collision if they’re under the age of 25, which will hike up the cost of the premium.

Where did Arthur Andersen go wrong?

Where did Arthur Andersen go wrong?

Arthur Andersen was once known as a “Big Five”, being one of the top accounting firms. These firms and their chartered accountants had solid reputations and were engaged by some of the largest clients to provide audit and attestation services. However, by the end of 2002, Arthur Andersen was facing federal indictments and an irreparably tarnished reputation. How did this prestigious firm of accountants fall from grace so quickly? There were four key mistakes that led to the accounting firm’s downfall.

Over-Focus on Consultation Services

The 1980’s and 1990’s were a time of mergers and acquisitions in many industries. This changing and fast-paced environment created a need for consulting services, which Arthur Andersen stepped up to provide. These consultation engagements were more lucrative than auditing and attestation engagements. The firm began to experience tension between the audit partners and the consulting partners, and the consulting side eventually split away from Arthur Andersen to become its own firm. Audit partners then began to feel pressured to obtain these lucrative consulting engagements, which then led to a focus more on profits than reputation.

Over-Focus on Profits

Arthur Andersen was built on a solid reputation of principles and integrity. Unfortunately this moral foundation began to falter in the 1990’s with the revelation of accounting scandals at a number of Arthur Andersen’s clients, culminating with the fraud perpetrated by Enron. This fraud would be the undoing of not only Enron, but Arthur Andersen as well. Arthur Andersen’s focus on profits and growing its consultation practice began to create a number of conflicts of interests for the firm, leading to even more problems.

Conflicts Of Interest

In addition to the conflicts of interest from providing both consultation and audit services to the same client, additional conflicts of interest were rampant between Arthur Andersen employees and the businesses they were auditing. For example, a large number of Enron managers were former Arthur Andersen employees. Arthur Anderson’s accountants who were on the Enron engagement turned a blind eye to concerns, even going as far as granting Enron’s requests to remove auditors the company did not like or who questioned their accounting practices. It especially didn’t help that Arthur Andersen began shredding important documents when they realized they were going to be investigated.

Arrogance

Arthur Andersen became arrogant, perhaps believing they were too big to fail. Early on, the Justice Department expressed a desire to look at settlement options, but Arthur Anderson refused. Ultimately, the accounting firm was found guilty of obstruction of justice. This conviction precluded Arthur Anderson from auditing public companies, which ultimately resulted in their demise.

The business climate has changed vastly since Arthur Andersen scandal. The scandal, in fact, had much to do with this. Many rules and practices were implemented to help ensure that accounting firms meet their professional and ethical obligation to investors and creditors. US also began shifting from rule based accounting guidelines towards accounting guidelines that rely more on professional judgement such as IFRS.

Are some alternative Canadian lenders offering portable mortgages?

Are some alternative Canadian lenders offering portable mortgages?

The Canadian mortgage market continues to evolve by offering more innovative financial packages. The Government of Canada has worked closely with financial institutions to create a rich environment for home ownership. The latest cutting-edge financial loan that may be available at your mortgage investment corporation is the portable mortgage.

“What is a Portable Mortgage?”

A normal mortgage provides capital at a specified interest rate for a specified period of time for a homeowner at the designated property. The portable mortgage allows the homeowner to transfer the terms and conditions of the contract from an old property to a new property without incurring penalties. This offers many key benefits for both the mortgage lending institution and the homeowner.

“Good Reliable Homeowner”

Your credit score rewards you for being dutiful in repaying your financial commitments. Likewise, the portable mortgage rewards you for being a solid, reliable, creditworthy customer. The financial institution has profited from your relationship and would like to continue to have you as a customer.

“If it is not broken, don’t fix it.”

There is no need to go through the entire application process again and charge an extra fee simply because the homeowner wants to move. The lending institution has already gone through the vetting process and found a trustworthy customer. The deep relationship has been established and been profitable for all parties.

Simply transfer the mortgage rates and make all parties happy. The creditor does not want to lose this valuable customer. The portable mortgage is like a “customer appreciation reward.”

“Mobile Canadian Workers”

A successful business man might receive a promotion and need to relocate. A daughter might need to return to her hometown because of an ailing parent. Portable mortgages are like credit card lines of credit that stay with you.

Nothing really has changed when a Canadian wants to relocate. He is still the same creditworthy customer; the portable mortgage travels with you wherever you may roam.

“Natural Life Housing Cycle”

Housing should mirror your life. When you are single, you might prefer a small apartment or condominium. A couple will need just a few rooms to enjoy their lives. The family will need a larger house and backyard. The empty nester will want a dwelling that is easy to maintain.

Just as a good family doctor will understand all of your family’s aches and pains, the portable housing loan relationship can be a comprehensive package that fulfills all of your lifetime housing needs. The lender keeps a valuable customer and the homeowner keeps a good creditor. First-time home buyers who are focused on the long-term, can ask if their lender offers a portable loan.

The portable mortgage also creates a higher class of mortgage investments. These are low risk, secure and have a dependable, verifiable mortgage repayment stream. So, as the days of your lives pass by, you might want to simply stay with a portable mortgage that remains with you. Check out the portable mortgage that is as mobile as you are.