What Affects Your Car Insurance Rates

In today’s day and age with advanced computers and algorithms the calculation of car insurance rates is no longer a simple feat. In the past, it was common for an Ontario car insurance broker to grab a book of rates, look at your age, vehicle and location and calculate an accurate car insurance quote. Today, insurers take into account thousands of variables that can impact your premium for car insurance.

Take a look below at the most common variables used to give you a personalized rate on car insurance, this is just a small sample of some of the more significant rating variables

Your Age

Like they say, with age comes experience and that is no different than your auto insurance.

Your Postal Code

Some areas are more prone to claims than others due to density, fraud or just poor driving habits and some areas have few accidents, which is why your postal code in Canada can make a big difference in car insurance rates.

Your Vehicle

The car you choose will also impact your premiums. Newer cars typically have advanced safety features, but this could also mean higher premium for collision coverage as the gadgets can get expensive to fix!

Your Distance Driven to Work & Annual Mileage

The more you are on the road, the more likely an accident may happen, therefore those that drive more kilometers per year may pay more for insurance.


The more tickets you have the more you will pay for insurance – simple.

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Ditto as above, but just with accidents – although not at fault accidents don’t typically count.v

Loyalty to 1 Company

Insurance companies take loyalty with 1 company seriously, and if you’ve been with 1 insurer for a very long time, expect to get better rates when shopping around.

Years Licensed

The total years you are licensed as well as how early you go through the graduated licensing system can all make an impact on your car insurance.

Total Years Insured.

Insurers want to see your insurance track record so that they can consider what type of rate to give. Someone with a lot of cancellations for not paying shouldn’t be treated the same as someone with a clean record.

How Long You Have Owned Your Car

Some insurers but not all may consider that those who own their car for a longer period of time may be more comfortable with that vehicle and it can result in a better premium with some companies than if you just purchased a new car.

The above is only a general overview of some rating factors for you Ontario car insurance rate.

What some car insurance companies might consider a rating variable for 1 driver may not be the case for another, which is why it is important to contact an insurance broker and help you find a personalized rate on car insurance unique to you.

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