Car insurance is a complex product. Nova Scotia auto insurance companies will take a number of variables into consideration when calculating your premium. Here are the major ones:
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 Nova Scotia may see higher rates due to this factor.
Mileage - Premiums are based on how many kilometers you drive a year. Insurance companies find your annual total by looking at the number of kilometers you drive per day. The more time you spend on the road, the more likely you are to be involved in a collision.
Car make and model - The more expensive the model of car you drive, the more you’ll be paying to insure it. However, insurance companies also pay attention to other factors, like whether your vehicle is prone to theft. If your car’s on the “most stolen” list, even if it’s not a status symbol, you could be paying more than average to insure it.
Driving habits - Maintaining a record that’s free of claims and convictions will keep your premiums stable. Throughout the years, you will even see your insurance costs decline. However, car insurance rates for high-risk drivers in Nova Scotia may be higher than the average rate. This is why car insurance for high risk drivers in Nova Scotia may be more expensive.
Age - Young drivers — think age 30 and under — pay the highest car insurance premiums, even if they don’t have any claims or convictions to their names. This is another reason why coverage providers might be hesitant to give new drivers in Nova Scotia a cheap rate on their car insurance.
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 Nova Scotia . 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 Nova Scotia who hold car insurance policies may pay higher rates due to a higher rate of accidents in their age group.
Coverage amounts - Buying coverage that exceeds what the law says is mandatory to have will result in a higher premium. Buying more coverage isn’t a bad idea, especially since legal fees can exceed the mandatory minimum benefit amount for liability coverage ($500,000). . You can always ask your insurance company to downgrade your coverage later on.
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. New immigrants who need car insurance in Nova Scotia may also face challenges because they have no Canadian insurance history at all. Your income level: How much money you make can also impact your car insurance rates. A higher income may indicate to an insurance company that you’re less likely to get behind on payments. This is why students looking for car insurance in Nova Scotia may face challenges securing an affordable rate.
As of November 2014, Nova Scotia insurers stopped using age and marital status to determine drivers' risk classifications. Removing gender as a rating factor was reviewed, but ultimately denied in the 2011 reforms.