Controlling Auto Insurance Premiums

If you’ve been insured with one company for many years you owe it to yourself to shop around and see whether you’ve been getting a fair rate. This process doesn’t have to be a lengthy one as it can simply involve doing comparison shopping online to get the best auto insurance quote. While you are comparing insurance companies, keep in mind the following facts that all companies will use in coming up with a figure.

1. City or country?
It’s no surprise that cities mean more vehicles and with that comes a corresponding increase in traffic accidents, claims, and thefts. Knowing this fact doesn’t mean we’re all going to simply get up and move to the country. Just be aware that this is one important factor that is a part of the overall premium calculation.

2. For work or for pleasure?

- The more you drive your car, the more likely you'll be to get in an accident. Conversely, the less you drive, the lower your premium is likely to be.

3. How’s your driving record?

- Insurance companies will look at your driving history and will quickly determine your pattern when it comes to staying out of trouble. We’ve all considered ourselves lucky at times when we’ve managed to avoid a ticket but if the tendancy is to speed, well, be prepared to pay for the “pedal to the metal” attitude.

4. How much coverage do you need?

- If that car of yours now falls into the “clunker” category, perhaps you need to think about only having liability coverage. After all, older vehicles are probably not worth the additional premium cost.

5. Make and year of car?

- The insurance industry gathers and analyzes statistics on the number and cost of Collision and Comprehensive claims for the most popular Canadian models of cars, passenger vans, SUVs and pickup trucks. If you’ve got your eyes on that hot new sports car then why not find out just how much that’s beauty is going to set you back in premiums?

You’ll be pleasantly surprised with the potential savings that come when you realize, in some cases, the wide range of car insurance quotes out there, and how that impacts you and your wallet.