Canadian Finance Blog

---

What Determines the Cost of Auto Insurance? Posted: 03 Mar 2011 02:00 AM PST Auto insurance is just another bill that we add to the pile. Unfortunately, liability coverage is something we can’t go without and we might not want to go without protection for your vehicle from theft or damage simply because we can't predict the future and might not be able to cover the expense if there ever is a collision. It's mandatory to have basic auto insurance in Canada and optional to get coverage for the loss or damage of your own vehicle. Auto insurance can be very costly or it can be very affordable. There are a few different factors that will determine your monthly cost. · First of all, depending on your age, the cost can be either higher or lower. The younger you are the more you'll pay, and once you're over 25, the rates tend to go down a little bit due to your years of experience on the road. · You will find that the type of car you have also plays a role. If you have an old clunker with parts that don't cost that much it will be cheaper. Although, if you drive an expensive sports car or an Escalade, it will be more costly. · Keeping your driving record clean is important. If you're someone that gets pulled over frequently due to traffic violations you will pay more than the average person. · Whether you want basic coverage or full coverage, this will also play a role in determining the cost. · You may not know this, but where you live can also play a part. Living in high crime areas tend to cost more simply because here are more break-ins and accidents than low crime areas. This then costs more for the insurance company which then trickles down to you. · How many kilometres do you drive yearly? The more you drive, the more you'll pay. Not to mention, the more you drive the more accidents, wear and tear and violations you could come across. Auto insurance is definitely something you can’t do without, and when your own car is also covered, you can drive more freely and not always worry about what you'll do if something does happen on the road. Also, if you're looking to be cost savvy, simply compare prices and rates with different companies and consider these factors that determine the price so you can have them benefit you instead of hurt you. Author Bio: Mindy Claribel is a stay at home mom that enjoys blogging in her spare time. If ever you have the question, How Much Will it Cost you can find the answer at our website. It was designed to help you find the cost of just about anything! Related Posts: Insurance You Can Do Without – Auto Glass Insurance Insurance You Can Do Without – Rental Car Insurance Auto Insurance Discounts What Determines the Cost of Auto Insurance? originally appeared on Canadian Finance Blog on March 3, 2011.

You are subscribed to email updates from Canadian Finance Blog To stop receiving these emails, you may unsubscribe now.	Email delivery powered by Google
Google Inc., 20 West Kinzie, Chicago IL USA 60610