Do you know what factors affect your car insurance premiums?
When it comes to car insurance premiums, know that they are based on a variety of risk factors. Insurance companies dictate insurance premiums based on how likely a policyholder is to make a claim and how much that claim will cost them to pay out for it.
Let's look at some of these risk factors, starting with where you live.
You location has a big impact on your car insurance premium. People living in an area with a small population and reduced traffic are likely to spend less, on average, on car insurance than those people living in a large, densely populated city such as Toronto, Ontario, for example, due to its higher driver population and thus higher risks including car accidents. As well, certain neighborhoods may be more susceptible to car thefts or vandalism than others, which can result in a higher auto insurance premium.
Check back for future Did You Know? segments covering other risk factors affecting your car insurance premium.