(NC) An increase in the cost of auto insurance can be frustrating, especially if you haven’t had any accidents. There are a number of factors that impact how much premium you pay, according to Aviva Canada. Some are external marketplace pressures that customers don’t control and others are customers’ unique circumstances.
Cost of a new car
New car prices have soared since the pandemic, partly because advanced technologies have also made vehicles more expensive to replace. Insurance premiums reflect the value of your car.
Cost of repairing a car
The cost and time to repair a car has increased. Global supply chain issues continue, making it difficult to get parts. Inflation has also driven up the cost of parts and labour to repair. All these have an impact on your insurance premium.
Auto theft
A car is stolen every five minutes. Rampant vehicle thefts by organized crime drive up premium costs for all Canadians.
Adding drivers or another vehicle to your policy
Adding other drivers, a new driver, or drivers under 25 years of age to your existing insurance policy may also cause your insurance premium to increase. If you add a car onto your policy or replace an existing car with a newer one that costs more to replace or repair, your insurance premium may go up.
Poor driving record
If you have multiple driving infractions such as speeding or stunt driving, your insurance rates will go up as you’re perceived to be at a greater risk for collisions. If you get into an at-fault accident, you’ll lose the accident-free discount most insurers offer. And your rates will rise the more at-fault accidents you’re involved in.
Missed discounts
If you have multiple insurance products with one provider, they usually offer you a bundled discount. They might also offer a lower rate if you opt for a higher deductible for example. Look into what discounts you might qualify for.
Not taking advantage of telematics
Many auto insurers offer their customers discounts if they sign up for telematics. These are apps on your phone that score you on driving behaviour. Safe drivers can benefit from lower insurance rates and rewards for driving carefully.
Learn more about insurance costs and coverage, and how to save, at aviva.ca.
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