If you have been driving your car for a year or more, then you must know a little something about car insurance. For one, you are aware that it is mandated by the laws of Canada for every driver to purchase a car insurance policy before they can take their vehicle on the road. It would be a major offense and is punishable by law.
Apart from that fact, what else do you know about car insurance? Do you know anything about how increasing your deductible could make your monthly premium lower? Understanding the different aspects of a car insurance policy before making the actual purchase will help you manage your expectations. Moreover, it helps assure you that you bought the right policy that will cover all your needs.
Did you know that the car model you are driving greatly affects how your car insurance is computed? If you are driving a sports car or the latest model of SUV released in the market, then you should expect to have higher insurance premium every month compared to those who have been driving the same car for ten years or so. Such difference is based on the risks that come with driving the latest and the oldest car as well as the cost of repairs that may be needed to bring it back to its shape after a road accident.
Have you been caught by a traffic officer for beating the red light? If you think that it is something that you can get over and done with when you paid the fee and got your license, you better think again. Your driving record makes a huge impact on how much your insurance policy will cost. When your driving record shows that you’re a reckless driver, the more likely that the insurance company will charge you with higher monthly premiums. If you are buying car insurance, make sure that you try very hard to follow all the traffic rules and not get caught. Doing so will not only keep you safe, but it will keep your premium low as well.
How much money are you willing to pay for your insurance premium? Your willingness to pay also affects the amount you will be charged with. If you want to pay less insurance, then you simply have to talk with your insurance provider and tell them that you want your deductibles to be higher. Doing so will make your monthly premium rates lower by a few hundred dollars.
There is still a lot about car insurance that you need to understand. Don’t hesitate to ask any insurance representative. They’d be glad to explain everything to you.