Automobile insurance: what factors contribute to higher premiums?

7 factors that can impact the cost of your insurance premiums

Rare are those who get madly excited at the thought of price shopping for... automobile insurance. And yet, it’s a necessary task (not to call it a chore) for all vehicle owners. In fact, the law stipulates that every owner of a vehicle used on Québec roads must be ensured .

Your insurance premiums, however, can vary greatly, and even be twice as high as someone else’s, depending on several factors. To purchase coverage that provides you with the appropriate protection at a fair price, you must first identify your needs, then compare the various offers from different companies.

Here are some of the factors that will impact the cost of your insurance premiums:

1. Age and driving experience . Because young drivers usually have less driving experience, insurers consider them a greater risk and charge higher premiums.
   ​In a similar vein, a driver who insures his first vehicle at the age of 50 will pay more than someone who has been purchasing vehicle insurance for over 30 years.
2. Vehicle utilization . Do you, for example, drive 100 kms or more to get to work every day? If so, your insurance will no doubt cost more than that of someone who only drives his vehicle occasionally (e.g., people who work from home).
3. Driving record and claims history. Your premium will depend, among other things, on the number of demerit points you’ve accumulated and the number of insurance claims filed in the past.
4. Place of residence. If you live in a major city, for example, the risk that your vehicle will be in an accident or stolen are much greater; this will have the effect of increasing the premium.
5. Vehicle driven. Insurers not only consider a specific vehicle’s value, but also the risks of theft. Some models are more sought out by thieves . Best to ask about this specific factor before purchasing a new vehicle.
6. Coverage inclusions. There are countless possibilities between the minimum protection required by law and the most comprehensive policy imaginable: elements to consider include theft, damages in the event of a collision, replacement value, deductible, etc. If it becomes overwhelming, you may want to rely on a broker to help you make a sound choice.
7. Discounts or promotions. Insurers will often run various promotions: better rates are sometimes available to members of a specific professional order or people who insure both their home and vehicle with the same company.

​Is your vehicle insurance expiring in the near future? Take the time to compare the offers from a number of insurers; odds are that you might save as much as a few hundred dollars!