All Canadians Can Carry Reasonable Auto Insurance Rates

There are many types of drivers in Canada. Most Canadians will have slightly different insurance premiums based on their driving history, their age, their marital status and the vehicle they drive etc.

We’ve put together a guide to help explain some of the different types of drivers in Canada and what that means when you’re buying car insurance.

Many seeking reasonable insurance rates have good reason for reticence. For athousands of Canadians drivers deemed “high risk“ by insurers, the search for lower premiums is a struggle to obtain coverage on any terms.

How Auto Insurance Premiums Are Set

Like it or not, you are a statistic to insurers. Insurance companies base rates upon data compiled over very long periods of time for large numbers of people. The personal data you provide is condensed into an overall driver “profile.” Those with riskier profiles are charged higher rates. Many even find themselves unable to obtain car insurance through any regular carrier.

In Canada, different factors that will heavily impact auto insurance rates are as follows:

Length of time licensednew drivers without established histories are riskier – unfortunately, first time drivers will have to accept this fact;

Gender – men are generally deemed riskier than women;

Driver age – those in younger age groups pay more. For example, a 16-year-old or 17-year-old will almost always have to pay more for their insurance. Various policies and prices are also available for seniors and those over 50-years-old;

Accidents – if you have been adjudged at fault in an accident, this could seriously impact your car insurance premiums for up to six years;

Tickets – three or more tickets within a three-year period may make you ineligible for auto coverage. Major convictions such as DUI, or driving more than 50 km/hour over the posted speed limit will have the same adverse effect.

Common Discounts

Military – in addition to decreased premiums, most military policies allow you to “freeze” coverage if deployed;

Female – many carriers offer discounts for ladies – some will even offer discounts for female students;

Driver education courses – this is especially valuable for younger drivers and those with poor driving histories;

Student discounts – younger drivers with good grades and academic honours show more responsibility and maturity;

Specialized auto security features – relatively low-cost security devices such as wheel locks or auto alarms decrease the likelihood of theft. Your premiums should decrease accordingly;

Multiple policies – carry multiple auto policies and other coverage such as life, health, and homeowner insurance with a single insurer;

Many insurance brokers specialize in serving high risk drivers, such as teenagers. Shop around; obtain several quotes and do not limit yourself to larger companies. Many smaller carriers or those new to the Canadian market offer discounts to promote new business.

Don’t Get Discouraged

With persistence and determination, you can find affordable auto insurance. Don’t get discouraged; keep on trucking until you find a policy suitable for your needs and budget. Vigilant adherence to better driving habits will pay off down the road. Happy hunting and drive safely.

For more information on different driver profiles click on the links below:

16-Year Old
Female Students
First Time Drivers
High Risk Drivers
Military Personnel
New Drivers
Over 50
Young Drivers