What Affects Car Insurance Rate

what factors determine car insurance rates
There are some factors that can affect your car insurance rate too badly. We have separated all the factors into three categories: demographic, car-related and personal driving habits. Let us review every category in detail.

Car-Related Factors

The vehicle you own has a considerable impact on car insurance rate. Some cars might be stolen, some of them are not safe enough to prevent car accidents, and some need more maintenance.

Safety Rating

If the safety rating of your car is high, the risk of paying the medical bills is low. The car insurance rate is low as well. The safety rating depends on the following points:

  • the likelihood of the car’s owner getting into an accident;
  • the likelihood that a passenger will be injured in an accident.

Traction control, airbags, and automatic seat bells increase the safety rate. It makes getting into a car accident less dangerous.
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The Car’s Size

A larger car is more safe than small in a traffic accident. That is why many larger cars have lower premiums than small cars with the same safety rating. However, the larger the engine – the higher the car insurance rate. Personal Money Service, which advices the customers on the car insurance, confirms that in order to pay the insuring they have to cut corners on the household expenses.

The Vehicle’s Age

Though it is not more expensive to repair an old car than a new one, an older car is more likely to be “totaled” in an accident. The reason is that the cost of required repairs can exceed the cost of the car itself. That is why the owner is more likely to replace this car than to repair it.
So newer cars have higher collision coverage rate than the older ones. The higher coverage means the higher premium.

Theft Likelihood

The newer and more expensive car is more likely to get stolen. The car, which hits top 10 most stolen list, will get a higher premium. But if the owner possesses a car alarm or other anti-theft features, the premium will be lower.

Personal Driving Habits

Your personal driving record is the main factor that determines the car insurance rate.

Driving History

If you made previous insurance claims, got any tickets, have been in traffic accidents or have a bad driving record, the insurance company can easily reject the insurance application. The majority of non-injury accidents and tickets stop influencing your rate during three years.

Driving Activity

The distance you drive, the reason for using the car and the place you drive to are also important factors for some insurance companies. If you are not commuting or use your car seldom, it can lower your premium.

Demographic Factors

Your Gender and Age

Many people suppose that men spend more on the car insurance. They are more likely to be in fatal crashes and receive tickets. Indeed, men, especially the young ones, are often involved in fatal traffic accidents and pay higher premiums for car insurance.

As the Consumer Federation of America informed in 2017 some insurance companies charge higher prices for older men than woman for the same age groups in 10 cities. However, CFA director of insurance Robert Hunter, underlined that those are the women who pay more whatever the age: “auto insurers usually charge middle-aged and older women higher rates than men.”

Your Marital Status

Insurance companies think that you are less risky if you are married. According to the statistics, married people get in fewer traffic accidents than the single ones. If you are divorced and not married now, it will also make car insurance rate higher.

Where You Live

The majority of car crashes occurs close to the place where you live. This is why your area influences car insurance rate, too. If you live in a densely populated neighborhood, it increases the risk of theft, accidents, and collisions.

In some areas, it costs more to maintain your car. In the urban areas, many drivers cannot afford to buy an insurance because they cannot find the ways to get out of debt. It also increases the traffic accidents. The best examples are Philadelphia and Detroit. Here it takes the highest amount to make insurance because their traffic density is high and there are many drivers without the insurance.


The auto insurers see the correlation between the risk of a crash and a profession, too. For instance, delivery drivers will pay higher premiums, because they are at a risk constantly. And pilots will have to pay less as they are in the sky mostly.

Your Credit History

People with high credit score pay lower premiums. If you are not a citizen of Hawaii, Massachusetts or California, your car insurance rate will go up if you have a bad credit history. This practice is legal in 47 states. Here bad credit history increases your car even more, than causing a crash.

info policy

Things to Consider When Purchasing Super Visa Insurance

If you are a parent or a grandparent of a Canadian citizen or permanent resident and you would like to visit your family in Canada, one way to do it is to receive a super visa. One of conditions for obtaining a super visa is the availability of medical insurance that is called super visa insurance. Applicants for this type of insurance should be Canadian citizens or permanent residents. Insurance is necessary to provide visitors with medical assistance in the emergency cases. There are many insurance companies that offer different policies, but are all of them provide a perfect solution for your needs? Some people, when buying super visa insurance, pay the most attention to rates. Yes, the price factor is undoubtedly important, but there are many other things you need to consider.

There are some basic requirements for super visa insurance:

  • it must be obtained in Canada;
  • its validity period must be at least 1 year;
  • the coverage must not less than $100 000.

Why Purchase Insurance in Canada?

There are basically two types of insurance. The one that is purchased in Canada is called Visitors to Canada, whereas insurance for Canada, bought in any other country, is called Travel Insurance. The latter can be cheaper, but it only acts as an addition to the basic state insurance of a country where the visa applicant resides. After leaving the homeland, an applicant may lose the right to obtain insurance in his/her home country, which leads to losing travel insurance as well.
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Another important point: if an insurance event occurs you can call a Canadian insurance company and it provides an address of the closest clinic or hospital. When you get to such a medical institution it should already receive an application with your name so many formalities for filling out the papers will be solved easier for you.

Insurance Rates

Super visa insurance of 100,000 Canadian dollars is the minimum required amount of coverage. You can buy insurance for larger amounts: $150,000, $200,000, etc. In order to determine how much to invest in the purchase, you should carefully study the list of illnesses and diseases covered by insurance. It is better to pay more for coverage than in case of illness find out that it is not an insurance event and you will have to pay for medical care out of your pocket. The difference in the price of insurance plans with a coverage of $100 000 and $150 000 is not too big. Therefore, it makes sense to choose insurance with better coverage, providing yourself or your family with a full-fledged medical care. You can even get super visa insurance plans that include coverage of exacerbation of chronic diseases (in this case you need to look for an emergency medical insurance plan for pre-existing conditions).

As a rule, the price for insurance policy correlates with the age of an applicant. For instance, the cost of insurance coverage of $100 000 for 50 and 75-years-old applicants may differ by $ 1000.

You should also keep in mind that rates for super visa insurance may vary in different provinces. In Quebec, New Brunswick, Yukon, Northern Territories, and Nunavut prices may be higher as there are fewer insurance companies on the market. To get acquainted with the policy rates you can request super visa insurance quotes.

Deductible Fees

When purchasing insurance, many people do not pay enough attention to such an important aspect as deductible amount. This amount can vary from $0 to $1000. What does this mean? If a hospital charges for its services more than a deductable amount, then an insurance company pays only the difference between the amount in a bill and a deductable amount. If the cost of treatment is less than a deductable amount, then it is fully paid by a patient. For example, if medical travel insurance has $1000 as deductible amount, you have to pay all expenses up to $1000 for each new visit to a doctor. As a rule, insurance policies with higher deductible amounts are less expensive.

Some insurance companies offer deductibles per claim, while others – per period. What is the difference? In the first case, each time you visit a doctor, you pay a deductible amount from your pocket, and in the second case, you pay only the first time.
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How Many Insurance Policies to Buy

If two members of your family enter Canada with super visa, then the insurance policies for them should be separate. What is it for? If a person decides to leave the country ahead of schedule without using insurance, a certain amount will be returned to this person. If the insurance is issued for two people and one of the parents applies for medical assistance in Canada, even in case of the early return home no refunds will be available. Besides, the travelers who have one insurance policy will have to return to the homeland together.

Cancellation and Renewal of Super Visa Insurance Policies

If a trip to Canada is canceled after you receive a super visa, you can cancel insurance or change its period. When entering Canada, super visa insurance must be valid. If the visa is denied, then the amount you paid for insurance may be returned without fees.

The super visa insurance policy is canceled in two cases:

  • when a person returns home;
  • when a person acquires provincial medical coverage.

After the early departure of a person from Canada and the cancellation of super visa travel insurance, a certain amount of money can be returned. To do this, you will need to provide a passport with the appropriate stamps and a ticket. A necessary condition for the return of the unused insurance cost is an absence of claims for the insurance events.

If you are going to renew insurance after the expiry of the insurance period, it must be done at least 48 hours beforehand and the important condition of renewal will be an absence of applications for medical assistance.

Super visa medical insurance is valid throughout Canada, so you can safely move from one province to another. In this case, you need to inform your insurance company about the change of address. If a person changes location within the same province, then the new address is reported only in case of insurance event.