The 411 on Car Insurance
Before buying car insurance, there are a number of things your broker will need to know. You should have this information ready so they can begin to customize a plan. It is important to remember that the more accurate information you can provide, the more accurate your car insurance quote will be.
Remember to be as open as possible about your driving record. The accuracy of your quote depends upon honest disclosure. Here are the most important pieces of info you should bring to the conversation with your broker:
- Drivers license number
- Type and model of your vehicle
- Number of drivers of the vehicle
- Number of licensed drivers in the household
- Use of vehicle (personal, business or both)
- Type of coverage and liability you choose
- Number of claims
- Number of moving violations within last 3 years
How Car Insurance Premiums Are Calculated
The rate of your car insurance premiums will depend on a number of factors. Just so you know though, an accurate quote won’t be possible until you discuss your unique situation with a broker.
1. Your driving record
A major area that car insurance providers examine is how many years you have been licensed, how many traffic and speeding tickets you have received and the number of accidents you have been involved in. Generally, your first minor conviction will have little or no impact on your rate.
2. Your personal profile
Your personal profile would include the type of automobile you drive. Rates would differ whether you drive an SUV or a sedan. The age of the car would also affect rates, as the risks associated with newer cars are higher. However, when a new car gets older, depreciation of value can affect car insurance premiums.
3. Where you live
This is where your postal code plays a major role in determining your rates. Mr. Smith in Toronto, Ontario who lives 10 blocks down from you might pay a higher premium than you even though you live on the same street and have similar insurance portfolios.
4. Your age
The way Insurance companies look at age is: The older you are, the less likely you will pose a risk on the road and be careful when driving. So the takeaway here is, the older you are, the lower your car insurance premium.
5. Usage of Vehicle
The more time you spend on the road, the higher your insurance rate due to increased risk exposure. Disclose whether you are using your car for work or pleasure. Failure to do so will have severe implications.
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Tips For Saving On Car Insurance
First, it’s important to build a good driving history, free of accidents and convictions. Then, when shopping for car insurance, first talk to friends, co-workers and family members to gain insight and start your research. If you are with an existing insurer, wait until the expiration of your policy before switching companies and always pay your premiums on time. Switching before an expiry date or failing to promptly pay premiums may make you appear a greater risk to insurers. Generally most insurance companies or brokers will offer the following discounts:
- When you bundle home and car insurance in one policy
- Depending on how long you have been with a particular insurer, your loyalty will always be rewarded
- Drivers training certificate
- Retiree discount
Are Higher Deductibles A Way to Save On Car Insurance?
Your deductible is the portion of a loss that you are required to pay. Your deductible can vary, depending on the type of coverage you have and the percentage of fault you are assigned in the event of an accident. There are deductibles for Collision or Upset, Comprehensive, All Perils and Specified Perils Coverage.
In other words, the more of the cost for repairs you assume, the less your car insurance provider will need to assume. So yes, a higher deductible can lower your car insurance premium. For example, by having a higher deductible of $500, instead of $300, on comprehensive coverage, you can save about 10% off your comprehensive premium. Also consider dropping optional coverage if you own an older vehicle.
Navigating Insurance For You®
Navigators Insurance Brokers is committed to finding the best coverage and value for your car insurance needs. Whether it’s a family SUV or a luxury vehicle or whether it’s used for work or pleasure, having the right coverage is essential to keep your automobile and passengers protected.
Navigators guarantees that a broker specialized in car insurance is there to advise and instruct car owners on the basics and advanced information they need to make the right decision. When you initially selected your new or used vehicle for purchase, a great deal of research and care was taken. Your lifestyle played a part in deciding what customizations and features were important.
With as much care and research that was done when buying your car, a broker can select the right insurance provider to best fit your lifestyle and budget.
Talk to a Navigators Insurance broker today in order to discuss your unique coverage needs. And remember, just because coverage is mandatory in Ontario, that doesn’t mean it is also mandatory to settle for inadequate protection or a policy that doesn’t fit you perfectly.