Car insurance rates in PEI can vary due to several factors. Before giving you an estimate, PEI car insurance providers will look at several factors. Here’s an example of the factors that determine your car insurance in PEI:
Your age - Car insurance for young drivers in PEI comes with some of the highest rates in the province. It’s the same thing in every province. Car insurance prices in PEI, like in the rest of Canada, tend to drop off after age 25 and continue to fall through to age 30.
This is why cheap car insurance for new drivers in PEI can be hard to find. (Learn more about shopping for car insurance for students in PEI.)
This isn’t the only way your age can impact your car insurance. Adults between the ages of 50 and 70 get some of the lowest car insurance rates inPEI. 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 statistically more likely to file a claim and need longer to recover from an injury. Therefore, car insurance rates for seniors in PEI, and other Canadian provinces, can also be more expensive.
Your driving history - Insurance companies like to see a lot of driving experience (typically eight years or so). They reward long-time drivers who are conviction and claims-free with lower rates. This factor also makes it harder for new drivers in PEI who need car insurance to find affordable rates.
In addition, if you’ve been deemed a high risk driver and you need car insurance in PEI, your driving history may become an obstacle to obtaining a cheaper rate. Learn more about high risk car insurance quotes for PEI drivers.
Your insurance history - Missed a car insurance payment? Your insurance premium will go up at renewal. Insurance companies give preference to customers who always pay on time and have no gaps in their insurance history. This is why one of the best ways to reduce your car insurance costs in PEI is to make your payments on time, every month.
An absence of an insurance history can also impact your rates. For example, rates for car insurance for new immigrants in PEI may be higher due to their lack of insurance history in Canada. Providers have little way of knowing whether you have a history of filing claims or making payments on time.
Your postal code - Insurance companies also rely on postal code regions to price auto insurance. Some postal code regions pay more in insurance than others because customers within that region are more likely to file a claim. That includes situations such as theft, vandalism, and collisions.
Your mileage - Insurance companies will ask you how many kilometres you drive each day. The longer your commute, the more time you spend on the road, which increases the probability that you’ll be involved in an accident.
Your car - Insurance companies have figured out a way to judge which car model is more likely to be involved in a collision, regardless of driver behaviour.