There is quite a range of auto insurance costs out there. Even when considering similar coverage options. It can be a bit confusing to go into without doing research on the topic. Here are some of the different factors that will determine the cost of your auto insurance premium.
It’s a simple fact that younger drivers have to pay more than older ones. Younger drivers are less seasoned on the road. They have also had less time to prove themselves reliable and safe with great driving records. Senior drivers often have to pay higher rates for insurance as well. They’re more likely to be considered a higher risk driver than someone in middle age.
The Age of Your Car
The age of car plays in the insurance factor as well. New cars are often more expensive to repair than old cars. For this reason, the insurance tends to be higher on them as well. The condition of your car can also play into this for similar reasons. The style of your car plays a part as well. Sporty cars might be fun but they can be considered more dangerous. That’s a price you’ll pay for on the insurance side of things.
What Kind of Safety Features Your Car Has
Cars that have nifty safety features will be considered safer to drive. Many cars now have rear cameras and sensors that help to park and prevent bumping into things. Having this feature decreases the likelihood that you might rear end someone. Your insurance company will see this as a plus, and potentially offer you a lowered rate because of it.
How Often You Drive
How much you actually use your car will also affect the price of your auto insurance. If you don’t drive it every day or put on few miles there is less of a chance that you will need to use your insurance. The more you drive the more maintenance you need, and the more likely it is that you might have a fender bender.
Where You Live
Each country and state has different rules about auto insurance rates. The same car and the same person would get quoted different numbers just for being in different states. These are usually for reasons that you can’t control. Some areas are considered higher risk when it comes to damage, such as areas that are prone to tornadoes.
Whether or Not You Own the Car Outright
If you are leasing a car or are still making payments on it, you might have to pay higher auto insurance. The auto insurance company generally won’t allow you to get away with just paying general liability. They will most likely want you to pay for collision coverage and comprehensive coverage. Those options will indeed give you more coverage in the event of an accident. They will also increase your premium. Only when you own your car outright will you have the option to downgrade your auto insurance coverage should you choose to.
Always shop around to find the best car insurance rates. Cheap Auto Insurance Ottawa may have better rates than other companies. Shop Insurance Canada to make sure you are getting the best bang for your buck.
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