The Coverage

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INTACT INSURANCE

How auto insurance premiums are calculated

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.

The coverage

The Coverage is brought to you by Intact Insurance and is a quarterly e-newsletter that gives helpful advice and articles on all things home and auto; as well as up-to-date information on our business and insurance plans.

Find a Broker

A broker is the best source of information about insurance. They know the industry inside and out and will do the legwork to find insurance solutions that best fit your needs and budget.