Wednesday, October 30, 2013

Get in the know about Auto Insurance #AutoXplained

Did you know Canada..  when chatting with friends about insurance I hear a lot about how those who have never made a claim deserve a very low rate, or how the kids with the "race cars" should be paying triple the rest of us.  Some might be surprised to know insurance companies really aren't picking on you, there are set systems in place that are used to calculate your premium.

Factors that are used include..
  • Where you live - collisions and auto theft are more likely in urban areas
  • What car you drive - make, model, year, value and potential repair cost are all taken into account
  • What you use your car for - the more you drive, the higher your collision risk
  • Your driving record and driver profile

What are some things you can control to reduce the cost of auto insurance? Drop collision coverage on an older car, get package deals by insuring both your car and home with the same company, install an approved theft deterrent system and buy a car with a lower-cost insurance rating.

If there is a claim do you wonder where the money will come from?  Well it works like this - the premiums of the many pay for the losses of a few.  So everyone's premiums (payments) go into a large pool and when someone makes a claim the money comes out of that pool.

Know the facts about auto insurance and why we pay what we do.

Although this post has been generously sponsored by IBC, the opinions and language are all my own, and in no way do they reflect The Insurance Bureau of Canada.

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