Insurance companies are in the business of calculating and mitigating risk, and that principle guides every policy and decision they make. When you’re buying car insurance in Calgary, your broker or provider is sure to ask you a few questions. Here are nine of the most common, and the reasons why we ask them:
1. What type of vehicle do you own?
When it comes to car insurance in Calgary, not all vehicles are the same. Some are stolen at much higher rates than others, and to insurance companies, those vehicles are a higher-risk proposition.
In addition, the vehicle’s resale value is another major consideration. The more expensive the car, the more it costs to replace if stolen or damaged, which means that more valuable cars and trucks often cost more to insure.
2. Do you lease the vehicle or own it yourself?
Whether you lease or own the vehicle doesn’t affect your insurance rate. The reason insurers ask this question is because they need to know who actually owns the vehicle to create a policy. If you lease, the leasing company will need to be noted in the insurance records.
3. Where do you live?
Your address has a major impact on car insurance rates in Calgary and around the province, no matter where you live. Different parts of cities, towns and rural areas all have a range of factors in play that affect insurance rates, including:
- Population density; the higher the population, the greater your chances of having an accident
- The proximity of emergency services
- Climate patterns
- Theft and vehicle vandalism rates
- Road design and the number of intersections in the area
4. Are you the vehicle’s only driver?
Your age, driving record and level of experience all influence the cost of your car insurance in Calgary. This is true of all other people covered by your policy, so if you’re not the only driver, the insurance company has to others to factor in to the equation. They will consider the same risk factors, as well as how frequently other drivers will use the vehicle.
5. What is your marital status, job and level of education?
Married people, members of certain professions or professional organizations, and post-secondary graduates may qualify for insurance discounts and rate reductions. Such factors mitigate risk from the insurance company’s perspective, which is the reason they make a difference.
6. How do you use your car?
In asking about this, insurance providers are seeking to evaluate the following aspects of your coverage:
- The more you drive, and the greater the distance you drive as measured in annual mileage, the greater your chances of being in an accident
- If you use your vehicle for commercial purposes, or store expensive equipment in it, your liability increases
7. Does your car have anti-theft equipment?
Unfortunately, vehicle theft rates have been on the rise across Alberta over the past year or so. As such, car insurance in Calgary is increasingly affected by whether or not you have anti-theft equipment. Alarms, immobilizers, ignition lock systems and other anti-theft strategies all deter thieves, making your vehicle less of a target…and less of a risk.
8. What is the mileage on your vehicle?
As mentioned, annual mileage is a key consideration when shopping for car insurance in Calgary. However, many people aren’t exactly sure how far they drive in a given year, so here is a quick and easy method for generating an estimate of your annual mileage:
- Check your odometer, and subtract the odometer’s original mileage when you acquired the vehicle. Divide the difference by the number of years you’ve owned the vehicle, and you’ll have a good idea how many kilometres you average per year.
Where do you park?
The safest place to store a vehicle is in a covered garage with a garage door; the riskiest place to park overnight is on the street. Vehicle theft rates vary widely depending on where a car is parked, and this is why insurers want to know where it’s stored when it’s not in use.
Finally, remember that even high-risk drivers can purchase car insurance in Calgary.
Great Rates and Great Services From Lane’s
If you’re looking for great rates on car insurance in Calgary, visit Lane’s Insurance to get a fast, free quote today. Lane’s Insurance is a leading Alberta-based brokerage, offering highly competitive rates and the industry’s best claims support and customer service.
