Why Is My Car Insurance So High?

There are numerous things that people in Canada like to watch grow, like children, gardens and communities.

However, there’s one thing that no one wants to grow over time: their auto insurance rates.

If you’ve recently asked yourself, “why is my car insurance so high?”, then you’re in luck — we have the answer to that question, and many more, in the following paragraphs.

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But, before we dive into the topic at hand, we’d like to take a moment to remind you that if you have questions about your personal auto insurance policy, it’s never a bad time to reach out to your insurance provider. They can walk you through the nuances of your auto insurance policy and help you understand any details that seem unclear.

FAQs about auto insurance pricing in Canada

There are so many variables that influence your auto insurance rates that it’s almost impossible to list them all in a single article. Thankfully, we can provide you with a list of answers to questions we commonly hear about auto insurance pricing in Canada.

Taking the time to read this list will give you a better understanding of your insurance policy and help you decide whether you’d like to stay with your insurance provider or potentially opt for a new one.

Does my driving record affect the price of my insurance premium?

As you likely know, whenever you receive a moving violation or get into a collision, it goes on your driving record.

When you apply for auto insurance, you need to supply your prospective provider with a copy of your driving record. If the insurance company notices that you have several infractions or violations on your record, you’ll likely have to pay more for coverage than a driver with an unmarred history. 

This is because your record indicates that you’re a risky driver and are more likely to get into another collision than the average driver.

However, if you’re asking yourself questions like, “why is my car insurance so high with a clean record?”, then you may be dealing with one of the issues below.

Does the amount of driving I do affect the price of my auto insurance premium?

Yes, the amount of time you spend on the road has a considerable impact on your insurance premium. 

Generally, the more time you spend on the road, the more prone you are to being in an accident or collision. Because of this, your insurance provider will likely consider you to be more of a risk than a driver who only drives occasionally. In turn, you will most likely have to pay more for auto coverage than the average Canadian driver.

Does my location have an impact on the price of my auto insurance premium?

Yes, the town or city that you live in affects the price of your auto insurance premium.

Every city and town is different in its own way; each area has unique demographics, wealth levels, and weather conditions. Not to mention, each town and city has various levels of auto accidents.

Auto insurance providers use these location-related variables (among many others) to determine the price of your auto insurance.

For example, if you live in a densely-populated city with high levels of auto collisions, like Toronto, then you’ll likely pay more than a driver that lives in a small, rural community in northern Ontario.

Does the type of vehicle I drive influence the price of my auto insurance premium?

You’ve likely heard the rumour that the colour of your vehicle can affect the cost of your auto insurance policy. Thankfully, this is just a driving myth; however, drivers should know that the type of vehicle they drive can impact the overall price of their auto premium.

For instance, luxury sports cars tend to be more expensive to insure than minivans.

This is because sports cars generally cost more than minivans, and luxury car drivers tend to be more aggressive than their counterparts.

Why is my car insurance quote so high if I’m a safe driver?

There’s a simple answer to this question — you need to re-shop your auto insurance policy. Auto insurance providers offer various plans at different rates. Because of this, Insurance Provider A may offer less coverage at a higher price than Insurance Provider B.

If you’ve not found the ideal plan for you, consider reaching out to an experienced insurance advisor. Insurance advisors can provide you with multiple quotes within a few short minutes. Doing this allows you to compare dozens of plans until you find the perfect match for you and the rest of your family.

However, if you’re planning to switch providers, we urge you not to cancel your auto insurance policy prematurely. Doing this creates a gap in your history, which doesn’t look good the next time you’re looking for a provider.

Is bundling my auto and home insurance worth it?

Yes, policy bundling is a fantastic way to save money on your car and home insurance in Canada.

Policy bundling is the act of purchasing multiple types of insurance from the same provider (as opposed to getting coverage from a handful of different companies).

Although the total discount varies from company to company, drivers can save approximately 5% on their insurance. This is a simple and easy way to save money on insurance over time, especially if you’ve found a provider that you want to work with for the foreseeable future.

If you have specific questions about policy bundling, don’t hesitate to reach out to your insurance provider. They can provide you with accurate prices and discounts that you may be eligible for.

Are you still paying too much for your car insurance?

Are you tired of overpaying for your car insurance? If so, you’re not alone.

Thankfully, now that you’ve taken the time to learn how insurance companies determine the price of your premium, you can start making the necessary changes to your driving habits. Before long, you’ll be saving hundreds or thousands of dollars on insurance each year.