While basic car insurance is required by law in BC, the cost of extended insurance plans will vary based on several factors. Understanding these factors and how they can impact your premiums will help you better understand how much car insurance costs. As leading providers of comprehensive insurance solutions, the team at Mountainview Insurance knows how complex car insurance can be. That is why they have provided a list of factors that affect the cost of car insurance to help you understand why your costs may be higher or lower than expected.
Learn about some other important questions to ask before buying car insurance.
3 Factors that Affect the Cost of Car Insurance
The following factors will significantly impact the final cost of your car insurance:
1. The Make and Model of Your Vehicle
The age, make, model, and safety features (automatic braking, blind spot detection, etc.) will influence the price of your car insurance premiums. Newer and more expensive vehicles tend to have more expensive premiums than older vehicles, though this can vary based on several factors. For example, if a certain type of vehicle is involved in crashes more than any other type of vehicle on the road, it will likely have a higher insurance premium than similar vehicles of the same age.
2. Your Driving History
ICBC will utilize your driving history to assess your level of risk. The higher this level of risk is, the more you will pay in insurance premiums. Your amount of driving experience, crash history, and the individuals who will regularly drive your car each affect your level of risk. If you are a safe driver with 15+ years of driving experience and no crashes, you can typically expect to pay less than a driver with less than 5 years of experience and 1 crash. In addition to driving history, your location and the intended use for your vehicle will impact your insurance premiums. For example, if you live in an urban area and commute more than 15 km to work, you will pay more than an individual who lives in a rural area and drives less than 5 km to work.
3. The Amount of Coverage You Need
If you choose optional insurance products such as collision, comprehensive, or extended third-party liability, this will increase your insurance premium. The amount of your deductible will also influence the price of insurance. The lower your deductible, the more your coverage will cost. Be sure to ask your insurance broker how certain options will influence the price of your coverage as this will help you make an informed decision.
To learn more about car insurance pricing or for assistance choosing the right options for your needs, get in touch with the team at Mountainview Insurance. They can be reached through their online contact form or by phone at 604-557-0255 and will be happy to answer any questions you may have.