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Determining your auto insurance premium

The cost of your auto insurance is based on a number of factors. First, we use our historical data and experience, together with the information you share with us, to decide how likely it is that you will have an accident or face a loss associated with your vehicle.

Types of auto insurance

Car insurance is mandatory for driving in Canada. No matter what kind of vehicle you are insuring, there are different levels of coverage you can choose from:

Coverages to protect you from costs to repair damage to your vehicle caused by an impact with another vehicle or an object (such as a guardrail).
Coverages to protect you from costs to repair damage to your vehicle from unexpected situations such as fire, theft, vandalism or some natural disasters.
Protection that covers you for both scenarios above.
Specific coverage which protects your vehicle only against specific dangers, such as theft or attempted theft, some natural disasters, riots, etc.

Beyond that, whether you’re driving an automobile, motorcycle, RV or even off-road toys, your broker can provide you with options to consider for your ideal coverage.

Factors that may impact your auto insurance premium

Having your home and car insurance together

Combining your home and car insurance – You may be eligible for discounts if you purchase your home, condo or tenant insurance with your car insurance.
How much deductible you pay

The amount of your deductible – increasing your deductible can help reduce your premium.
The type of car you drive

We factor into your rate what it will cost to find the right replacement parts to repair your car and how likely it is to be stolen by thieves.
How long you have been licensed to drive

As you gain driving experience and become a better, safer driver, the risk you present can decrease.
How often you drive

If you drive every day including to and from work, the distance of your commute will impact your premium; especially if you are travelling during periods of heavier traffic. Do you use your car for business? This will also impact your rate as well.
Where you live

Major urban areas are more prone to vandalism and theft; they are also more congested and accident rates are higher.
How much protection do you want

If you want more insurance protection for your vehicle, then the right price for you will be higher than someone who wants less protection.
Driver education courses

Young or inexperienced drivers with a clear record may receive recognition for completing an approved driver training course.
Your driving habits and skills

The number and types of traffic violations (if any) you may have is something we consider when setting your price. Moreover, the number of accidents you or other drivers of your vehicle are responsible for causing will influence your price. That being the case, driving defensively could help save you money.