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.

Auto insurance fraud is a widespread problem, adding as much as $300 per year to every insurance customer’s premiums. Whether you’re purchasing Calgary car insurance or are out on the road, there are things you can do to prevent fraud from happening to you. Of course, the first step in this process it to make yourself aware of the types of fraud that are out there, and of the proper ways to deal with an auto accident when it happens. The best way to completely avoid fraud is to work with a licensed professional to purchase a Calgary car insurance policy that is perfect for you.

When purchasing Calgary car insurance

When you’re shopping around for Calgary car insurance, keep these tips in mind:

• Any time you have doubts about an insurance company, call the Alberta Insurance Council to find out if the company is certified.
• If you come across a company whose rates are much lower than its competitors, don’t buy anything just yet. Ask around and do research to make sure that the company is legitimate. If you can’t find good information on the company, it may be a scam.
• When it comes to door-to-door salespeople, internet ads, or telemarketers, be especially careful.
• Read every word of your insurance policy before signing it.
• Once you have your Calgary car insurance ID number, keep it private.

When driving

When you’re behind the wheel, always be aware of the cars that are around you. Watch out for cars that follow dangerously close to you or suddenly pull in front of you. These could be staged-accident attempts. Any time another driver is making you feel unsafe, get yourself out of the situation as soon as you can. If possible, pull into a gas station or any other safe spot.

After a collision with another vehicle

To guard against fraud from other drivers, it’s important to be aware of the best procedures to use following an accident. Here are some things to remember:

• After exchanging all relevant information with the other driver—including license numbers, vehicle registrations, names, addresses, phone numbers, and insurance information—take photographs of the scene and the damage to both cars. If you don’t have a camera in your phone, keep a disposable camera in your glove compartment.
• Count how many people are in the other car. If possible, get names and numbers for all of them.
• If anyone who is not a law enforcement officer arrives at the scene and tries to tell you to do anything, ignore them.
• Call the police and ask if they can come to the scene. If they do come, file a police report immediately.
• File a claim with your Calgary car insurance company as soon as possible.
• Don’t use a tow-truck driver who insists upon bringing your vehicle to a specific repair shop.
• Be sure to get detailed bills and invoices for all charges resulting from your accident, and keep all of your receipts.
• Never under any circumstances sign anything that you have not carefully read, even if someone urgently insists that you do so.

Because there are so many different car insurance companies and each has its own set of rules and policies, it’s understandable that the industry is perennially dogged by rumour and legend. But the truth is out there, and in most cases the popular view is relatively accurate, but not exactly correct. When you’re looking for a Calgary auto insurance quote, it helps to be aware of whether your assumptions are true or false. And if you find these issue a little difficult to sort through, you might benefit from seeking a consultation with a licensed professional.

Myth: Car insurance is always cheaper for drivers over 25.

Fact: When you get a Calgary auto insurance quote, there are many factors that the company takes into consideration, and age is only one of them. Insurers also look at vehicle safety information, past claims history, and other demographic factors unrelated to age. So, while there’s a good chance that your insurance rates will go down if you’re turning 25 soon, any number of other factors can actually drive your rates up. Be sure to read your policy in detail before coming to any conclusions.

Myth: Insurance bundling always gives you cheaper insurance rates.

Fact: There’s a widespread rumour that if you buy insurance through a company with which you already have a different kind of policy, then your Calgary auto insurance quote will be lower. Although bundling is often convenient and it can have a positive influence on your rate, it’s not the only thing to take into consideration. When shopping for insurance, be sure to get several quotes from different companies, and you may find that you can actually find better rates when you don’t bundle.

Myth: Rental reimbursement pays for crashes in rental cars.

Fact: Many people mistakenly assume that their rental reimbursement coverage will pay for anything that happens to cars they rent, and as a result they may opt not to get insurance for rental cars. However, this assumption is far from the truth. In reality, your rental reimbursement coverage only pays for the cost of renting a car when your personal vehicle is damaged as a result of an accident.

Myth: Comprehensive insurance covers everything.

Fact: The name “comprehensive” is a little misleading. Comprehensive coverage doesn’t actually cover everything, and it’s certainly not a replacement for your required liability coverage. In reality, comprehensive insurance is supplemental coverage that pays for specific types of non-collision damages, including those resulting theft, fire, weather, or vandalism. If you’re not sure how much more this will cost you, get a Calgary auto insurance quote that includes comprehensive coverage and see how it stacks up.

Myth: Insurers can charge whatever they want.

Fact: When people get upset about their insurance rates, one of the common complaints is that it’s just not fair how insurance companies are allowed to charge whatever they want. But this is simply not true. The fact is that insurance companies are highly regulated, subject to both national and provincial laws. While their rates are not always as user friendly as some might like, lawmakers at least try to ensure that the regulations are beneficial for both customers and providers.

When it comes to car safety, having Calgary auto insurance is the first step. Not only is insurance legally mandated, but it’s also the smart and responsible way to protect yourself, your family, and other drivers from the financial consequences of auto accidents. However, simply having insurance is not enough. By having modern car safety features and driving with safety as your top priority, you’ll lower the risk of injury or serious damage in the event of an accident, and you may even lower your Calgary auto insurance rate. For details about how you can find the most beneficial insurance policy for you, consider talking with a licensed professional.

Here are some tips that will enhance your safety and help reduce the financial burden on you and your Calgary auto insurance company.

1. Hands-free phone devices: A growing number of North American provinces, states, and municipalities are making it illegal to drive while talking on a cell phone. Although no such law has yet taken effect in Alberta, it’s still a good idea to avoid talking while driving and to keep your attention focused on the road. However, if your fast-paced life demands that you sometimes talk on the phone while driving, use a hands-free device that allows you to keep full control over your vehicle

2. Airbags: Because there’s not much protection on the sides of most vehicles, side-impact collisions are among the most dangerous types of car accidents. Side-impact airbags help absorb the impact of the collision, engaging instantly to cushion the blow to the driver or the passenger. There are two levels of side-impact airbags—those that protect the torso, and those that are installed above the doors to protect the individual from the shoulder up. Safety features such as these can actually help lower your Calgary auto insurance rates.

3. Good safety ratings: Whenever you’re in the market for a new car, check the safety ratings for all vehicles you’re considering. Consult the Transport Canada website or the site of the U.S.-based National Highway Traffic Safety Administration for safety ratings for all the vehicles on the market. You can also call your Calgary auto insurance company and find out if there are any vehicles they recommend for safety.

4. Antilock Braking System (or ABS): Having an antilock braking system prevents your wheels from sliding on slippery surfaces, and it helps you maintain control when you have to brake suddenly. If you have a vehicle with an ABS, it’s important to understand how it works. Otherwise, you may not even be aware when the system kicks in.

5. Frequent check-ups: Most drivers know that it’s important to have your oil changed and your tires rotated every 5,000 to 10,000 miles, but it’s also a good idea to have a trusted mechanic check all your car’s systems at least every six months or so.

6. Classroom refresher: For many adults, it’s been decades since we’ve had a driver’s safety course, and after years of routine driving it’s easy to forget the specific details of the best safety practices. By taking driver’s safety classes for adults, you can refresh yourself on all those basic safety details and maybe even learn some new pointers. These classes may also get you a discount on your Calgary auto insurance.

Accidents happen even to the best drivers. But if you’re prepared, if you know how to handle the situation, and if you have good Calgary car insurance, it doesn’t have to be a traumatic experience. Before hitting the road, familiarize yourself with these important steps for preparing for car accidents and dealing with them when they happen.

Before the accident:

1. Have insurance, and know your coverage: Calgary car insurance is a must-have for all drivers in the area. Getting insurance is not only required by law, but also the responsible thing to do. It protects you and your family from damages resulting from car accidents, and it helps ensure that you can pay for any repairs needed to your vehicle. If you’re not sure where to begin with your insurance, talk to a licensed professional about the best Calgary car insurance options available to you. Once you do have your insurance, be sure to read all the pertinent information so that you will be mentally prepared in the event of an accident.

2. Have safety features, and use them: The safety features of modern cars are more sophisticated than ever. Having things like antilock brakes and automatic seatbelts helps keep you and your family safe, and it may even get you a discount on your Calgary car insurance. But merely having them is not enough; be aware of your car’s safety features, and have a good understanding of how they work.

3. Safe driving practices: This may go without saying, but the best way to prepare for accidents is to avoid them completely. Even when you’re in a rush, remember that your car is a dangerous piece of machinery, and always make an effort to put safety above all other concerns. If you need a refresher, taking driver’s safety classes may get you even more off your Calgary car insurance.

4. Have a safety kit: In addition to a cell phone, it’s a good idea to have a first-aid kit, pen and paper, a medical insurance card, a list of contact numbers, local law-enforcement information, and a flashlight. If you have room, you may also want to keep some warning triangles, emergency flares, and a set of cones.

After the accident:

5. Exchange insurance information: When you get into a collision involving another vehicle, you and the other driver should exchange names, phone numbers, addresses, driver’s license numbers, license plate numbers, insurance companies, and insurance policy numbers. If the driver of the vehicle is not the primary policy holder for that vehicle, make sure you have all of this information as well.

6. Document the accident: Fortunately, documenting the scene of a car accident is easier than ever, given the fact that many of us have handy cameras right inside of our cell phones. After making sure everyone is safe, take photographs of the accident. Try to show the overall context of the scene and get the damage from multiple angles.

7. File a report: If law enforcement is at the scene, you can file a report with your officer. Otherwise, you can fill out a report online, but be sure to do it soon, as there is a statute of limitations. The report will be useful in the event that there are any disputes regarding liability or other issues relating to the accident.

8. Call your insurance company: If you’ve read your insurance policy thoroughly, you should have a good sense of what’s covered. However, if you have any questions on the scene, use your cell phone to call your Calgary car insurance company. Then, once the dust has settled, make your insurance claim as soon as possible.

When seeking a Calgary auto insurance quote, there is certain coverage that you will be required to purchase. However, the required insurance is by no means the full extent of the coverage that you may choose to get. To help you understand all the factors that go into your Calgary auto insurance quote, there are many licensed professionals who can help you sort through these issues. In the meantime, here are the main types of insurance that you may want to consider having.

Liability coverage

Liability coverage is the one type of coverage that is required for every driver throughout all Canadian provinces. When getting a Calgary auto insurance quote, if you choose only the required options, you’ll end up with a quote for basic liability coverage. While the exact amounts of mandated liability coverage vary from province to province, Alberta requires all drivers to have at least $100,000.

Under the umbrella of general liability coverage are property damage liability and bodily injury liability. What this means is that, in the event of an accident that is your fault, your insurance company will pay for the damages not only to your car but also to any other vehicles involved. Meanwhile, they’ll also cover any associated medical bills. If you have, for example, $100,000 in coverage, your company will pay all bills up to that figure, and any bills in excess of $100,000 will have to be paid out of pocket.

When getting a Calgary auto insurance quote, it’s easy to assume that you’ll never need more than $100,000. However, accident bills can add up quickly, so it’s a good idea to invest in a higher rate. Of course, the higher your liability coverage, the higher the premiums will be.

Comprehensive coverage

Liability coverage mainly covers accidents involving one or more vehicles in motion. However, there are obviously many other ways that a vehicle can be damaged. The purpose of comprehensive coverage is to cover the costs of any other types of incidents such as theft, fire, vandalism, collision with animals, or weather events. This type of coverage is never required, but it’s generally a good idea to have if your vehicle is worth more than $1,000 or so.

When seeking your Calgary auto insurance quote, be aware that comprehensive coverage rates will vary depending on how much coverage you want and the size of deductible that you’re willing to pay in the event of damage to your car.

Collision coverage

Collision insurance covers damages that result from collisions where liability is not a factor. It doesn’t cover medical bills or any other expenses that may arise due to the collision. It exists only to help pay for vehicle fixes. If you choose a high deductible in your Calgary auto insurance quote, then your premiums should stay pretty low. For example, if you agree to pay $1,000 for any collision damages of $2,000 or less, your premium won’t be very high.

Uninsured motorist coverage

Uninsured motorist coverage is useful to have in case you get into an accident in which an uninsured driver is liable. Some types also cover collisions with hit-and-run drivers or motorists who refuse to exchange insurance information after a collision.

Having Calgary auto insurance is the only way to protect yourself, your family, and others from the financial and practical repercussions of car damage and theft. In an ideal scenario, you’ll never have to take payouts from your insurance company, but most of us do have an incident sooner or later. When such incidents arise, and even when they don’t, there are several reasons why it’s a good idea to have Calgary auto insurance.

Insurance buys a sense of security. Accidents do happen, and there’s no foolproof way to prevent them, but it’s nice to feel secure in the knowledge that if something happen, you’ll be okay. It’s not that having Calgary auto insurance lets you drive recklessly or disregard proper driving precautions, but it does enable you to go about your daily life without having worry continuously about what will happen if you get in an accident. If you’re someone who genuinely enjoys driving and considers it a hobby, insurance enables you to enjoy your pastime without any distractions.

It safeguards your investment. Even if you don’t drive a fancy car, there’s a good chance that your vehicle is worth thousands of dollars, which is a large chunk of money for anyone. When you have Calgary auto insurance, your investment is protected from most types of damage. While for many types of accidents you’ll still have to pay a deductible, having insurance at least protects you from catastrophic losses, and it gives you the funds you need either to repair the damages to your car or to provide yourself with a new one. If you want to find out how to best secure your investment, consider consulting a licensed professional about your insurance needs.

It protects you from financial hardship. When you don’t have insurance, the bills resulting from an accident can be enough to cause serious financial hardship. Especially for the driver who is at fault, lack of insurance can lead to bills in the hundreds of thousands of dollars, which is far more than many of us can cover. Such situations can lead to bankruptcy and even legal repercussions.

It protects you from reckless drivers. We all assume a certain amount of risk when we head out on the road, and there’s nothing we can do to fully protect ourselves from people who drive recklessly or without regard for the people they share the road with. However, in the event that one of these drivers does happen to involve you in an accident, your Calgary auto insurance will protect you.

It’s required. In Alberta, as in most in places, every person who drives a vehicle is required to have insurance. Anyone who is caught driving without coverage risks serious repercussions, including vehicle seizure, license revocation, and stiff fines. Even if the individual only drives without insurance once or twice, this is more than enough to cause legal difficulties.

It’s socially responsible. Because many modern cars are so easy to drive, it’s easy to forget that they are actually very large and potentially dangerous pieces of machinery. Thus, owning and operating one should come with very serious responsibilities. Having Calgary auto insurance indicates that you understand the seriousness of driving and that you are a responsible member of the community.

There are several common mistakes that many people make when applying for auto insurance. Some of these issues are rather obvious, but others are far from common knowledge. If you want to make sure that you get the best possible Calgary auto insurance quote, try to avoid making these mistakes.

1. Making monthly payments: Making monthly payments on auto insurance is more practical for some people, but monthly payments often end up costing more in the long run. If possible, you may want to consider paying annual or biannual lump sums. If you’re not sure how to interpret the offers you’re seeing, it may be a good idea to consult a licensed professional about your options.

2. Not shopping around: It’s easy to assume that there are auto insurance industry standards and that few companies dramatically deviate from the norm, but the fact is that insurance rates can vary by as much as 25% or more from company to company. So, when seeking a Calgary auto insurance quote, be sure to check with multiple companies.

3. Careless driving: Having tickets or getting in accidents are the quickest ways to drive up your insurance rates. Generally, the worse your record, the higher your rates will be, and it can take years to live these things down in the eyes of the insurance industry.

4. Over-sharing online: This comes as a shock to many people, but there’s a good chance that an insurance company employee is Googling you to find out if you reveal reckless tendencies in your social networking pages. There’s nothing unethical about this practice, and it’s becoming more and more common, so double check how you’re presenting yourself online before seeking a Calgary auto insurance quote.

5. Giving the wrong information: Mistakenly entering the wrong information on your Calgary auto insurance quote application can be sufficient grounds for denial of payouts later on, so be sure to double check all the data before sending in your application.

6. Giving incomplete information: The same goes for giving information that does not fully address all the questions on the application. For example, anyone who has a criminal record may be obligated to enter this information on an application, and if it’s not there, the insurance company may not see fit to cover any incidents that arise.

7. Not keeping the car secure: There are many factors that insurance companies take into consideration when generating a Calgary auto insurance quote. Just one factor is whether or not you’ve had stolen vehicles in the past. Especially if you’ve had multiple incidents, it simply makes good business sense to charge you a little more for your insurance.

8. Entering the wrong name: Because insurance is often higher for younger drivers, it’s sometimes tempting to enter a parent’s name as the primary driver of a vehicle. However, anyone who does this risks facing charges for insurance fraud.

9. Fixing up the car: Of course, we all want our cars to be in top condition, but adding lots of modifications to your car may actually cause your Calgary auto insurance quote to be higher. If you want to keep your payments low, it’s a good idea only to use modifications that enhance safety or efficiency.

10. Having no insurance: This one is obvious, but you might be surprised by how many drivers think they can go without having insurance at all. Even though it’s relatively common, it’s also illegal. Drivers who are caught with without insurance risk having their licenses revoked, facing hefty fines, or even having their vehicles seized.

No matter where you live, there’s a good chance that you’re paying too much for your auto insurance. Calgary car insurance companies mean well, but because many of them work with such a high volume of customers, it’s hard for them to work directly with every single person to come up with the best possible deal. In the end, it’s up to individuals to read through company policies and find out where any possible savings lie. To help you get started, here are a few ways that you may be able to save on your Calgary car insurance.

Package deals

One way to save money on your insurance is to seek package deals. There are many ways to go about this. For one thing, you may be able to get a special deal when you sign up together with your spouse or other members of your household. Also, if you have other types of insurance, you may be able to get a discount on your car insurance if you go through the same company. It can’t hurt to ask.

Occupational discounts

It’s well known that insurance companies charge more or less depending upon your age, the model of your car, and your driving history, but did you know that you may also be able to get a discount because of your job? Insurance companies have done the research, and it’s clear that there are certain occupations that are associated with lower accident risk. For example, let’s say you’re a firefighter. Maybe your Calgary car insurance company has found that firefighters have a lower risk of accidents, so they give firefighters lower rates. The only way to know for sure whether this discount applies to you is to call your company ask.

Car safety discounts

There are certain models of cars that are regarded as exceptionally safe. If you have one of these cars, you might qualify for a discount. Meanwhile, you may be able to get an additional amount off your rate for getting things like airbags, automatic seatbelts, and antilock brakes.  Ask your Calgary car insurance company if they have any such deals.

Keep a clean driving record

In the end, the only foolproof way to get the lowest insurance rate is to maintain a safe driving record over the years. Accidents do occur, but if you can avoid tickets and accident liability, your rates are likely to go down over time. Find out what your Calgary car insurance company’s policies are, and it could be that you’ll be eligible for lower rates at a given time in the future.

Get help

If you’re not sure whether any of these discounts apply to you, you may benefit from getting a consultation with a licensed professional who can advise you on the most common ways to lower insurance rates.

Higher deductible

This option is risky, but if you think you are an exceptionally safe driver and you don’t mind taking on the extra risk, you may be able to get your Calgary car insurance company to give you a lower monthly rate.

Shopping for Calgary auto insurance can be an intimidating task. There are so many different companies, policies, and pricing factors that it can be tough to know what you can expect and whether you’re getting a reasonable deal. However, if you go about it deliberately and measure all your options, then you can be confident that you’re making the right choice. Here are six simple steps for purchasing Calgary auto insurance.

Step 1: How much coverage do you need?

Determine how much insurance coverage you need. Every province has different requirements; for Calgary auto insurance, everyone needs to have a minimum of $200,000 for third-party liability coverage, which includes a range of possible expenses. Going beyond the minimum, you may also want to consider extra coverage for things like theft, weather damage, or certain types of accidents that aren’t covered by default.

Most insurance companies will have the information about what’s required for Calgary auto insurance, but it certainly helps to have the information at hand when you start the insurance-buying process.

Step 2: How much should you expect to pay?

If you’ve received tickets or have been in accidents, insurance companies will probably ask you to pay a higher rate. They may also ask you to pay more based on your age, where you live, the model of your car,  and the frequency of your auto use. Negative points on your driving record expire with time, so you may want to ask insurance companies about their policies regarding these data points. It could be that your rate will go down if you just wait a month or two before soliciting a quote.

Step 3: Get quotes.

Start with websites that can provide quotes from multiple Calgary auto insurance companies at once. These results may not be as accurate as quotes directly from the providers, but doing this will at least give you a sense of what you can expect. If you have more time to spare, you can also go directly through companies’ websites. If there are any Calgary auto insurance companies you’re interested in but which don’t offer online quotes, call them. Keep a spreadsheet containing all the quotes you get.

Step 4: Keep an eye out for discounts.

As you’re doing your research—especially for the companies that you call—try to find information about discounts or other ways to save money on your insurance. For example, you may be able to save by getting a combined plan for you and your spouse, or you might get a discount for certain safety features included with your car.

Step 5: Make your choice.

Now that you have all the facts and figures at hand, it’s time to choose your company. If you’re still not completely sure, ask several friends which companies they use, or call a trusted mechanic or auto body shop and ask which Calgary auto insurance companies they think are best. For a more authoritative consultation, talk to a licensed professional about how to evaluate the costs and benefits of auto insurance policies.

Step 6: Review the policy in full.

Before signing your insurance policy, read every word of the contract. It may not be the most interesting reading, but it will ensure that you aren’t surprised later on by policy features. Plus, the information will be useful to know should you ever have an accident.