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.