There are a number of factors that insurance companies consider when measuring the likelihood of losses from car accidents that they would have to compensate for. The answer to how much is car insurance in Alberta can be found by looking at these factors:
At-fault accidents
Insurance rate premiums rise with at-fault accidents. A lot of rating programs take into account how many accidents a driver has been involved in to determine how much is car insurance in Alberta. Some insurance companies forgive the first at-fault accident so your premiums do not increase. It’s important to ask your broker about how this benefit will apply to your policy.
Age and marital status
Younger drivers with less driving experience are considered a higher risk and are charged higher premiums when asking how much is car insurance in Alberta. It is also assumed that married drivers are generally more cautious than singles because of a lower accident rate.
Discounts
Insurance companies give customers discounts which they calculate differently to determine how much is car insurance in Alberta. Discounts depend on whether a car is a hybrid, anti-theft device installation and whether a policy holder has another policy with them.
Driving convictions
Convictions for driving offenses can drive premiums up while a clean record keeps them low. Insurance rating calculators look at the minor and major convictions to calculate a driver’s rate. Premiums depend on the type and number of convictions they have such as careless driving, driving under the influence and more.
Unpaid premiums
If premiums go unpaid for more than two years, premiums may be higher when a new policy is bought or an old one renewed. This also ties into your credit score, so keeping up with payments can factor into insurance rates.
Coverage limits
There are two factors, deductibles and third party liability limit. Higher liability limits increase premiums. The extra premium that can be added to the minimum $200,000 limit is modest because costs can add up quickly, where some Alberta drivers have coverage of at least $1,000,000. As for deductibles, those that apply to collision, comprehensive and particular risks coverage represent how much loss a policyholder is responsible before the insurance company responds. Higher deductibles lowers drivers’ premiums.
Location
Location is a factor in determining how much is car insurance in Alberta. Car insurance companies generally charge urban dwellers higher premiums because of the congestion and higher number of collision incidents. Premiums are also higher for those who live in areas where vehicle theft and vandalism are common.
Type of vehicle
Insurers also consider the model, make and year of a vehicle when determining how much car insurance in Alberta is. They use a classification system that ranks vehicles based on claim experience.
Driving Patterns
Whether a vehicle is used for daily commuting, sporting or recreational activities are also considered. Some insurance companies offer usage based insurance that only considers driving habits of the policyholder such as braking, acceleration, mileage and time of the day the vehicle is in use. This is geared to save drivers in Alberta money who have a good driving record.
For more information on auto insurance options, contact ARC Insurance today!
