When it comes to Calgary auto insurance, there are always a lot of rumours going around about how rates are decided. Many of these rumours are nothing more than paranoia or idle speculation, and they probably shouldn’t be taken seriously. Fortunately, Calgary auto insurance companies are required to be transparent about their policies, which means that the true information actually isn’t that hard to get. If you don’t know how to track down your company’s policies, consider meeting with a licensed professional to sort through how your rate is decided. For now, here are some of the common considerations that may go into deciding your Calgary auto insurance rate.
Age: In general, although not always, people under the age of 25 are required to pay higher insurance premiums. This is simply because younger drivers tend to be a little more reckless and get into accidents more frequently. People become safer and safer as they age, with individuals in their 50s being the safest of all. Over the age of 65, one’s rates may begin to climb back up.
Gender: For whatever reason, statistics show that women are safer drivers, which means that they typically get lower rates on Calgary auto insurance.
Marital status: People who are married are statistically less likely to get into accidents. Nobody is quite sure why this is, but that doesn’t stop insurance companies from taking this fact into account.
Driving violations: How many tickets have you received? If you’ve never been ticketed for a moving violation, you’ll likely benefit with a lower Calgary auto insurance rate. On the other hand, if you have multiple tickets for speeding, driving recklessly, or driving while intoxicated, your insurance rate may be much higher than the average. Most companies will forgive these infractions after a certain period of time, but this varies from provider to provider.
Past accidents: Having a single accident in your past probably won’t significantly affect your car insurance rate. However, if you show a pattern of repeated accidents over multiple years, your insurance company may take this as a sign that you’re likely to get into more accidents, which will lead them to charge you a higher premium.
Credit rating: Most insurance companies do take members’ credit ratings into account. If you have very poor credit, it will cause your premiums to be higher, but in general this factor is not as important as some of the other ones.
Occupation: There are certain professions that are associated with lower or higher rates of accidents. This doesn’t always have to do with whether the profession involves using a car. Sometimes it’s just that people of certain professions get into accidents less frequently, for whatever reason.
Vehicle model: All cars are given safety ratings by independent inspection agencies. Your insurance policy will be associated with a primary vehicle, and your Calgary auto insurance company will take your car model into account.
Weekly rate of driving: If you drive a relatively large number of miles each week, your Calgary auto insurance company may charge you a higher rate. To come up with this figure they may ask you about your work schedule and the distance of your commute.
