How your Driving Record, Vehicle and Personal Profile Affect your Auto Insurance Rate
It's important to understand that your auto insurance rate is affected by changes to your personal profile. For example:
  • If you had two minor convictions (e.g., speeding 15 km or more over the speed limit) in the last three years, your insurer will likely increase your rate at your next renewal. A typical rate increase is around 15 per cent.
  • If you had an at-fault accident within the last six years, it will increase your rate. For example, if the driver in Profile 1 had an at-fault accident in the last year, instead of having had no chargeable accidents, and no accident forgiveness is available on the policy, the driver would end up paying about 180 per cent more.
  • If you are over the age of 25 and use your vehicle for pleasure only (not for commuting to and from work), you will likely save about 15 per cent on your insurance rate.
  • Your rate is based on where you live. In the profiles shown for the Toronto territory, the rate is based on the person living near Yonge and Bloor (postal codes starting with M4Y). If the person lived in Mississauga (postal codes starting with L4X) instead of Toronto, the rate could be 10 per cent lower.
  • Your rate is based on the deductibles you have. If the driver in Profile 1 had selected a deductible of $1,000 on Collision or Upset Coverage instead of $500, he would have likely saved about 10 per cent. In addition, if the driver had chosen a deducible of $500 on Comprehensive Coverage instead of $300, he would have likely saved about 5 per cent.
  • Your rate is based on the type of car you drive. For example, if the driver in Profile 3 had an older vehicle, such as a 2005 Honda Civic DX 2-door Coupe, she would likely save about 5 per cent.
  • Your rate is based on your age. For example, if the driver in Profile 3 was 21 years old, she would likely pay 10 per cent more.
  • Insurers provide several different types of discounts. For example, some companies offer group discounts. Check with your employer or alumni/professional association to find out if you belong to a group and can receive a discounted rate. Some insurers also offer significant multi-policy discounts when you insure both your home and vehicle with the company. The typical group and multi-policy discounts are about 10 per cent each.