There are a number of things insurance companies will take into account when calculating your rate. For instance, the amount that you drive every day, your insurance history, your gender, and other factors may impact how much you pay for car insurance each month.
Here’s a list of other factors insurance companies may consider when evaluating your risk profile:
Your licence level: Not having a full licence will cause your premium to be higher. Conversely, having a full licence has a positive effect on your car insurance rates. New drivers looking for car insurance in Halifax may see higher rates as a result. This is why students who need car insurance in Halifax may face challenges securing an affordable rate.
Your driving history: Insurance companies favour drivers who have many years of claims-free driving experience. Having little driving experience (approximately less than 10 years), previous claims, and driving convictions will push your car insurance rates up. For this reason, car insurance rates for high-risk drivers in Halifax may be higher than the average rate.
Your age: Being a young driver puts you at a higher probability of being in a collision, according to actuarial data: you’re new to driving and are likely going to make some mistakes. In 2014, Nova Scotia car insurance companies stopped using age as a factor when determining risk profiles. New drivers in Halifax may find cheap car insurance rates more easily than in other provinces.
However, being young isn’t the only way age can impact your car insurance rates. Adults between the ages of 50 and 70 get some of the lowest car insurance rates in Canada. If you belong to this demographic, you probably have a long history of being insured and you might even have bundled your home insurance policy with the same provider of your auto insurance. After age 70, though, you might see your rate begin to creep up because people in your age group are more statistically more likely to need to file a claim and need longer to recover from an injury. Therefore, seniors in Halifax who hold car insurance policies may also pay higher rates due to a higher rate of accidents in this age group.
Your sex: Unfortunately, men often pay higher rates than women.
Your postal code: Urban dwellers pay more than drivers in rural areas.
Your insurance history: In addition to having a poor driving history, your insurance history can also play a role in determining your rates. If you’ve filed multiple claims or have a history of missing payments, you may be given a higher rate. Furthermore, new immigrants who need car insurance in Halifax may also face challenges because they have no Canadian insurance history at all.
The amount of coverage you purchase: Buying coverage that exceeds the mandatory minimums will raise your insurance premium.
Having a consistent source of income: Whether or not you are employed may impact your ability to make regular payments. This is why students who need car insurance in Halifax may face challenges securing an affordable rate.