6 factors that influence the cost of your auto insurance

One of the details that often go overlooked when buying a new car is: how much am I going to pay for my insurance? Insurance premiums are a major cost for any potential new car owner. It’s important to consider the various factors that contribute to the overall cost of owning your vehicle. Let the experts at Millennium Insurance Corporation show you the best way to shop for your car while getting the lowest auto insurance rate possible in Edmonton or Calgary.

Vehicle factors

Many factors that determine the price of your auto insurance have to do with the physical condition or appearance of your car:

  1. Age

Insurance premiums are based on the amount of money the insurance company will have to pay if the vehicle is damaged or stolen. For that reason, a newer vehicle will generally have a higher insurance rate than an older one. While this isn’t always the case, if you’re looking to minimize insurance payments, a used car is likely the way to go.

  1. Type

The higher insurance premiums relate to the repair costs or replacement cost of the vehicle unless the bigger size of the engine increases the cost.

  1. Likelihood of theft

Cars with a higher likelihood of being stolen will have higher insurance premiums. Any car on the top 10 most stolen list will be more expensive to insure. This increase in rate can be mitigated by the installation of an anti-theft system.

  1. Safety rating

The value of the car itself isn’t the only thing that plays into the cost of auto insurance. The likelihood of sustaining a serious injury can also influence your insurance premiums. Cars with higher safety ratings (such as SUVs) will usually have lower rates than those lower on the list.

Personal factors

There are also factors independent of the car you’re buying that contribute to the price of your auto insurance:

  1. Gender and age

Statistically, young men have a higher chance of getting into an accident and will typically have higher insurance rates than women.

  1. Driving history

A driver who has had more tickets and accidents will be considered at higher risk of making a claim and will therefore pay more in insurance premiums than one who hasn’t. Fortunately these become less significant as time passes. More serious offenses such as a DUI will significantly affect your premiums for at least ten years.

If you’re looking for the lowest rates on auto, home or business insurance in Edmonton or Calgary, contact Millennium Insurance Corporation today. For more information, click here to visit our website.

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