If you’ve owned several cars in your life you’ve probably noticed that car insurance premiums in Brantford can fluctuate wildly from car to car, and you might be wondering why. There are many many factors that go into calculating an insurance premium but this article will explore some of the primary factors.
1. The Type of Car
One of the most important factors when calculating insurance premiums is the car itself, though less the car physically and more how the car looks on paper. Insurance will draw on statistics like “likelihood to be involved in an accident” or “number of reports of being stolen” and base the calculations on those statistics.
They’ll also be based partly on the value of the car as well, both new and expected and estimate how much it would cost to replace if it was theoretically damaged beyond repair.
2. Your Driving Record
The Insurance company will also take a close look at your track record, anything that’s been tracked be it accidents or speeding tickets or any other signs of dangerous or reckless driving will be factored into the premium calculation.
If the car is going to be driven by multiple people such as partners or children then their records will also be factored in.
3. Location
Where you live and where the car is being primarily driven is a more important factor than you might expect, in fact in terms of magnitude it can often be the most important factor. Living in a city center is statistically more dangerous than living in a suburb and so insurance premiums are much higher if you live and work in city limits.
4. Car Use
Depending on whether the car is being used for personal or commercial use will determine what kind of car insurance premium you can apply for in Brantford, which will in turn have an effect on the premium. Most personal insurance does not cover accidents which occured while the car is being used for work (not just a commute but job site accidents like on a construction site).
The amount which you drive the car will also be a factor. The less you drive the car on a day to day basis the safer you are on paper and the cheaper the premium an insurance company is likely to offer.
5. Other Factors
There are many other factors that have a part to play: Government regulation can and will change your premiums as all provinces have a minimum coverage requirement. Your credit history can and will be examined and added to the calculation.
Marital status has a surprising effect as on paper married drivers are considered less risky. Even your gender can even play a role though the legal grounds for factoring in gender are on shaky ground right now.