Finance Blog


Factors That Affect Your Car Insurance Rates

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Different insurance companies offer different car insurance rates, and if you want to save some money, you should research as many companies as you can before you apply for a certain insurance policy.

However, regardless of your insurance company, your rates could go up (or down) for many different reasons.

The price of average car insurance Ontario residents get depends on many factors, so let’s take a closer look at some of them that might be surprising.

Your Age

To insurance companies, your age is a general indication of your driving experience and accident risk. The younger you are, the less experience behind the wheel you have. This means you’re more accident-prone and more likely to submit a claim for reimbursement, causing your insurance rates to go up.

If you’re 18 when you apply for insurance, your average insurance rate in Ontario will be about $11,000 a year, and by the age of 25, it will go down to about $3,000 a year.

Your Gender

Generally speaking, men are seen as riskier drivers than women. They often spend more hours on the road and engage in risky driving behavior, including wearing seatbelts less frequently and driving under the influence of alcohol.

This means that men are more likely to suffer serious injuries and submit higher insurance claims. So, insurance companies usually offer men higher rates than they do to women. This has the biggest effect on young male drivers who are already paying higher rates due to their age.

Your Location

Car insurance companies have a reason for asking about your ZIP code when you apply for their insurance policy. Based on the ZIP code, they can get information about the rate of stolen cars in your area, the number of claims, cases of vandalism, and even the weather that’s likely to damage your car.

All of this factors into the cost of your insurance rates. If you live in a rural area, you’ll have lower rates than those living in urban environments, simply because urban environments are riskier.

Your Marital Status

Believe it or not, studies show single people get into accidents more often than married individuals. Married people have been found to behave more cautiously on the road, resulting in fewer accidents and insurance claims than singles, so they can get lower insurance rates.

Not every insurer takes your marital status into account, however, so get informed about that before you apply for insurance.

Many other factors can affect your insurance rates, so always do your research beforehand if you want to get the highest coverage at the lowest rates.

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