A Breakdown of Car Insurance Premium Factors in Alberta

Are you confused about your car insurance premiums? Are you wondering why you’re charged the rates you are? If so, here’s some examples of the key factors that can influence the cost of auto insurance, and what you can do to reduce it.

Factor Breakdown: The Car

Cars are evaluated based on their claims history and some will cost more to insure than others. If you’re in the market for a new car, speak with your broker to find out what the cost will be prior to purchasing.

How the vehicle gets used will impact your premiums. An example would be the distance travelled yearly and commute to and from work.

Factor Breakdown: The driver(s)

There are many factors related to who will be driving the vehicle that can impact insurance premiums, including the following:

  • Driving record. Any convictions, driving offenses, licence suspensions and at-fault accidents within the last few years will raise your premiums.
  • Age. Younger drivers will likely have to pay more, especially those that haven’t had their licence for very long. This is because young drivers are statistically more at risk of being involved in at-fault accidents.

    Similarly, drivers in their senior years may pay more as this group is also at an increased risk of being in an accident.
  • Training. New Drivers who have recently completed a driver training course may be eligible for lower premiums.

Factor Breakdown: The type

The type of coverage you require for your vehicle will affect the cost of your premiums.

In addition, increasing your deductible will result in a lower premium.

Finally, combining your car and homeowners’ insurance will likely reduce the cost of both, as many insurers provide discounts for purchasing multiple types of insurance.

We’ll Find the Perfect Auto Insurance for You!

If you’re looking for affordable premiums in Edmonton, you can count on Edmonton’s very own MBS Insurance Brokers. Our team of experienced brokers can help you find a policy that meets your needs and provide you with information on how to reduce your premiums.  Contact us today for a free quote!