Automobile Insurance Notes*

Automobile rates are affected by many things:

  • Do you use your vehicle just for pleasure?
  • Do you drive to work, or use your car for business?
  • What type of vehicle do you drive – year, make, model and body type?
  • Approximately how many kilometres is the vehicle driven annually?
  • Who will be driving it?
  • What is the age and driving experience of each driver in the household?
  • Are drivers under age 25 male or female?
  • How much will each be using the vehicle?
  • What is the claims and accident history for each driver in the last six years?
  • What is each driver's conviction record for the last three years?
  • Has any driver in the household had a license suspension or an automobile policy cancelled in the last six years?
Various Premium Discounts Available  
  • Low-mileage car use, graduation from approved driver training courses, two or more vehicles insured for the same household.
  • Retirees with no employment income. Mature drivers over age 50.
  • Loss prevention devices, e.g., car alarms.
  • If your car is not used in winter, you can suspend third-party liability & collision coverage while the vehicle is stored but maintain accident benefits coverage.
  • Increased deductibles.
  • Policy renewals for long-time, claims-free policyholders.

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If You Are Thinking of Changing Insurer

Ask what happens to your classification if you have an at-fault or partially at-fault accident. Many companies allow partial forgiveness of the first at-fault accident and re-classify at the next rating category. Others do not, and this results in a substantially increased premium.

The Effect of Claims on Premiums

If you are at fault, or partially at fault, in a collision, your renewal premium may be affected.

Many companies allow one "at-fault" claim for clients believed to be good drivers and make little or no adjustment in rating or premium at renewal.

Claims for theft, vandalism, fire, broken glass and for collision when you are not at fault do not affect your renewal premium.

If you lend your car to others and they cause an accident, your premium may be affected.

A multitude of "at-fault" claims and/or driving convictions could result in your being transferred to the high-risk, high-premium Facility Association at renewal time.

* This information is published with the permission of the Insurance Bureau of Canada.
Premium discounts vary by company. Ask your broker what discounts apply to you.