The method insurance companies use to determine rates for auto insurance is often something of a mystery for drivers needing Ontario, Canada auto insurance.

Once you understand the factors auto insurance providers use to calculate their rates, it is easier to uncover ways to get a lower rate.

These are some of the factors insurance providers use to determine your rate:

• Your age
• Year, make, model of your car
• Driving history
• Where you live
• Gender
• Marital status

While you have no control over certain factors such as your age, years of driving experience, gender, and other demographics, something you could change to get better auto insurance rates is moving to a city that offers more favorable rates. Depending on your city of residence, you will pay more or less for your car insurance.

For instance, you will pay less for car insurance in Ontario when you choose to live in geographical areas that are less densely populated. Research shows that there are fewer accidents, thefts, and other crimes where there are fewer people, and where roadways are less congested.

Other things you can do are maintain a safe driving record, increase your deductibles, and bundle your auto insurance with your home or tenant insurance policy.

Still another option for saving money on your car insurance is to review the Canadian Loss Experience Automobile Rating system, also known as CLEAR. The Canadian government designed this system to advise drivers of the likeliness of particular year/make/models of cars to be involved in a claim. You can also use the system to learn how much a claim might be for a particular car you are interested in buying. Autos that have a lower claims risk rating and CLEAR number are likely to qualify for lower auto insurance premiums.

If you are interested in another way to decrease your auto insurance premiums, you might consider getting a telematics device. Telematics leverage technology to record driving activities and insurance providers use the data to personalize auto insurance premiums.

Finally, it pays to shop for auto insurance once in a while. A different insurance provider may be able to offer you a more favorable rate.

Once you understand the basics of auto insurance, you will be better informed on how to set up your coverages so you can save money without sacrificing the quality of your coverage.

A simple thing you can do to get a lower rate on your auto insurance is to increase your deductible. However, be aware you will need to pay your deductible first if you are deemed to be at fault in an accident.

Another simple thing you can do to save money is to drive safely. Follow the rules of the road and drive defensively. Leave plenty of room behind the car in front of you, and always obey the speed limit. Fewer tickets and accidents will help keep your auto insurance premiums down.

If your car is older and you do not have a loan on it, you might consider dropping the collision coverage. Just be aware that you may not have coverage for damage to your car depending on the circumstances of an accident.

Finally, shop around for auto insurance on occasion. Auto insurers are always looking for ways to lower their premiums. You might find that another insurance company offers a better rate than the one you are currently getting.

Data Sources

• https://www150.statcan.gc.ca/n1/daily-quotidien/180615/dq180615e-eng.htm
• http://www.ibc.ca/ab/auto/buying-auto-insurance/how-auto-insurance-premiums/clear
• https://www.fsco.gov.on.ca/en/auto/brochures/pages/brochure_autoins.aspx
• http://www.fsco.gov.on.ca/Pages/default.aspx
• https://www.numbeo.com/traffic/in/Niagara-Falls-Canada
• https://www.niagararegion.ca/health/statistics/demographics/default.aspx
• https://toronto.citynews.ca/2019/08/15/province-announces-major-go-train-expansion/