Every month we all pay our insurance and do not think much of it. We only really pay attention when the cost changes or we have a claim we have to make. I find this interesting. Something that is such a big part of our daily lives and many of us know so little about it. If you drive or own a house/property you have insurance. So why not learn more about it?
Here is some information YOU should pay attention to.
What factors you should take into account when getting car insurance.
Where you live is a big factor. I was not surprised to read that Collisions and auto theft are more likely in urban areas, but was surprised to hear they may affect your premium.
What car you drive also factors in. Your car’s make, model, year, value and any potential repair costs are all associated with risk factors. Some cars may be more “sporty” and the owner may tend to drive faster for example. I remember my sister’s car cost more to insure, as it was red. Who knew?!?
Your insurance company may consider the CLEAR system to rate your car. Factors like what you use your car for (pleasure or commuting to work? Highway driving or city driving?) How often do you drive and how many KMs will you be driving are also factors. The more you drive and the farther you drive, the higher your risk.
I remember being asked these questions but really was clueless why, Now I know. A big factor that makes sense to me is driving record. If you are collision free you want your insurance company to know this. Just like if you get in a lot of accidents, it is not going to look great for you. Your driver profile and the province you live in also come into play. If you are a new driver your insurance will be affected as well.
Sometimes when it comes to insurance what others have done in the past are going to make your rates a certain amount. They look at a pattern. It is up to you to make the change and drive safe. The other factor is who is on your insurance? You may have great rates then you add a new driver, then what?
The other thing I always wondered about is where do my payments go? Luckily there are more people paying insurance then there are people making claims. So when somebody has a claim , no matter how big or small. There is money in the combined pool to cover it.
The one thing for sure is when it comes to insurance, there is way more than a bill being taken out every month from our accounts. It is worth looking into. You may actually learn something and if possible, make some changes. you may save money. Wouldn’t that be nice?
Learn more about insurance and everything we never thought about at Insurance Bureau of Canada.
Disclosure- Although this post has been generously been sponsored by IBC, the opinions and language are all my own, and in no way do they reflect Insurance Bureau of Canada.
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