Ottawa auto insurance rates are the subject of widespread rumours, many of which are not accurate or just plain untrue. Fortunately for consumers, Ottawa auto insurance companies are required to be very transparent about their decision-making formulas, and information about how these things are decided is commonly available through company websites. Plus, there are many licensed professionals available to help insurance buyers sort through the many factors that go into generating Ottawa auto insurance rates. As an introduction, here are some of the factors that are commonly considered in rate quotes.
Age:
It’s not uncommon for people under the age of 25 to be required to pay higher insurance premiums. It’s not always true, but it is a common phenomenon across the industry. It comes from the simple fact that people under 25 get into accidents much more frequently than people over 25. Rates steadily go down as people age, bottoming out for individuals in their 50s. After age 65, rates typically begin to go back up.
Gender:
For whatever reason, statistics show that women are safer drivers on average. Most Ottawa auto insurance companies take this into account.
Occupation:
Statistics show that people with certain occupations are much less likely to get into car accidents than people with other occupations. If your insurance company has found that your employment makes you a lower-risk individual, you could benefit with lower premiums.
Marital status:
It’s also been found that marital status can have an effect on one’s likelihood of getting in an accident. In particular, unmarried people tend to get into accidents more frequently, and this may come across in your Ottawa auto insurance rate.
Past accidents:
If you’ve been in a few accidents, and if any of them were relatively recent, this can cause your insurance rate to go up. Your may not be severely affected if you’ve had one or two isolated incidents in the distant past, but it’s up to the insurance industry to decide whether there is a pattern. If you’ve never been in an accident, your rates should be relatively low.
Violations:
How many tickets for moving violations have you received? If you’ve had more than your share of tickets, this will be reflected in your Ottawa auto insurance rate. On the other hand, if you’re an impeccable driver and have never committed a violation, you will benefit. Most companies will forget violations after a period of time, but these policies vary form company to company.
Credit rating:
Your insurance company may take your credit rating into account, so if there’s anything you can do to improve your credit before applying, this might benefit you.
Care model and safety features:
Some models of cars have higher safety ratings than other models, and your Ottawa auto insurance company is likely to take this into account. Also, if you have certain safety features in your vehicle, this can work in your favor.
Driving frequency:
How many miles do you drive per week, and how long is your commute to work? When you’re applying for a quote, you’ll probably encounter these questions. The more you drive, the higher your premiums will be.
