Always look at the fine print in your auto insurance policy

March 10th, 2015 by

If you've ever wondered how car insurance premiums are calculated or why they can vary so much, you're not alone. Many Canadians are perplexed by these questions, and want to know more about the auto insurance process.

"Insurance companies look at many factors to determine what the premium is that a person will be charged for auto insurance," Pete Karageorgos, spokesperson for the Insurance Bureau of Canada, explained to Andrew Seale of Yahoo! Finance Canada in an email. 

Your driving history, where you live as well as your vehicle are all factors insurers take into account. For instance, certain areas may have higher claims costs, while other areas have a greater frequency of collisions, thefts and vandalism. These dynamics all influence the car insurance premiums motorists pay, says Karageorgos.

In addition to the differences between different areas, auto insurance coverages also vary between provinces. 

While "auto insurance is sold by government owned and operated insurers in B.C., Saskatchewan and Manitoba," Karageorgos says Quebec "has a hybrid system with government (which is responsible for injuries) to private insurers who cover damage to vehicles."

One way you can lower your auto insurance premiums is through opting for a higher deductible. This is the amount you agree to pay out of pocket in the event of an accident.

"A policy with a $1,000 collision deductible costs less than the same policy with a $500 deductible," Karageorgos asserts. 

If you are looking for the best auto insurance in New Brunswick, Fundy Mutual can assist you. With our 70-plus years serving customers in the region, we understand New Brunswickers' needs. Contact us today for an affordable car insurance quote