Car Insurance Rate Canada

Car Insurance Rate Canada

If you want to find a car insurance rate Canada that you can afford, the best way to do that is by shopping around.  

You'll also want to be sure to take advantage of every available discount.

The best all-in-one place to do that online is Kanetix for Canadian residents.  They'll let you fill out one simple form and then give you the best quotes from a variety of the top Canadian car insurers.

It's amazing the different ways auto insurance rates are determined from country to country. There can even be a significant difference in price between insurers within the same country.

Part of that is due to the way governments decide to impose the law on the amount of insurance a driver is required to have. 

Some countries have very low limits and allow you the prerogative of determining for yourself the amount of additional coverage you'd like to carry.

In Australia, for example, your bare minimum insurance (for third party coverage) is included in your annual vehicle registration bill.  You don't pay it?  You're car isn't registered.

If you want insurance protection for yourself, your family, your vehicle, or anyone you may hit in an at-fault accident, you have to sort that out yourself with your chosen insurance company. 

It's not required, just strongly suggested. :)

Canada auto insurance requirements are a bit different again. Once you know the basic requirements, it's then time to determine how you can get the best car insurance rate Canada for your money and your needs.

That is why it is pays to know what is involved in calculating a car insurance rate so that you can anticipate how your premiums will be determined. As the old saying goes, "Knowledge is power!"

By knowing the factors involved, you can take steps to position yourself for the best possible quotes.

What Determines Canada Car Insurance Rates?

Some of the aspects that go into determining a typical auto insurance rate are pretty much common sense. However, there may be some details that you were unaware of. These are some of the basic facts considered by the insurer when determining your policy quote.

  • Vehicle Usage - If you use your car for business, you will be charged at the highest rate. Using a car for commuting to and from work is less expensive, especially if it is not a great distance. Pleasure driving is the least expensive. If your auto is used mostly for leisure, you will receive cheaper rates.

  • Vehicle Type - Your vehicle is rated by the Canadian Loss Experience Automobile Rating (CLEAR) system - this is a program that evaluates the previous claims history of different types of cars to calculate possible future risk. The most expensive cars are not always the most risky to insure.

  • Vehicle Location - Rates are often determined, in part, by where you live. If you happen to move, you may experience a change in your premiums.

  • Driver's Details - Your age, gender, and marital status are pretty much always considered as important factors in your auto insurance rate. Drivers under the age of 25 will always pay a higher premium, especially males. However, a married male under 25 will pay less than a single guy under 25. (Now, don't run out and get married just to save money on your car insurance!)

  • Driver's Experience & History - The longer you have been driving without claims the better you will be rated. Commonly, the best rating is for those drivers who have had a good driving history for 6 years or more with no claims or traffic tickets. When you do have tickets to consider, the major ones will definitely affect your rating. A couple of minor ones over a few years will probably not affect your rate that much, if at all.

It pays to be a smart and safe driver. You can save several hundred dollars a year on your car insurance rate Canada if you factor in all the possibilities, and work them to your advantage.

Compare car insurance quotes.

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