Monday, January 11, 2010

Your Auto Premiums - No Mystery There

The following is a guest post from TD Insurance:

There are many factors to be considered when it comes to auto insurance premiums. How, where and what kind of car are driven all come into play when insurance must be paid.

A driving record is a determining factor when it comes to car insurance premiums. The better record you have, the lower the premium may be. As the years pass, the cost of the premium may decrease too.

Factors included on a driving record include numbers of years driving, convictions associated with driving, accidents, speeding tickets, moving violations and license suspensions.

The type of car driven can also affect auto premiums. Some vehicles have a risky status when it comes to how they fare in accidents and how safe they are. In addition, some cars have a high theft rate.

Make and model matter as does replacing the vehicle if it is ever damaged. Knowledge is power and in this case, knowledge is money. The Canadian Loss Experience Rating (CLEAR) shows how much each car will cost to replace. The newer the model means the more out of pocket. The IBC (Insurance Bureau of Canada) website can show history of cars and the top cars stolen in Canada so you can know everything before you pay.

Insurance premiums are based on more than what you drive and how clean your driving record is. The amount of time that you spend on the road is also a factor in how much the premium will be. If a driver spends a lot of time on the road, their premium will be higher. Insurance companies also look at all of the drivers that will be driving a particular car and their driving records too.

If you live in an area with high vandalism and theft, the cost of an insurance premium can be quite high. In Canada, the provinces have categories that put insurance holders together according to their profiles.

The amount of coverage chosen will also affect the cost. In addition, a low deductible carries a higher premium cost. Each province may also require its own minimal amount of coverage, so check for a motor insurance quote before committing to a plan.

Furthermore, there are some factors that drive the premium cost and do not include anything to do with the driver. For example, inflation can cause premiums to increase and so can government regulation.

Disclosure: The above is a sponsored post, and may not express the opinions of the site author(s).

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