27 April 2015

Auto insurance: Why does your insurance company ask so many questions?

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The answer is simple: We can give you the best price, based on your situation, only by assessing the risks we are taking in insuring you. Most Quebec damage insurers will ask you the same types of questions.

What information determines your auto insurance premium?

  • Vehicle make and model. Your chances of getting a better price are greater with a brand new model than with an older one or a badly maintained vehicle.
  • Vehicle use. Questions may include whether the vehicle is used for professional or personal purposes and whether you drive long distances between your home and workplace.
  • Where you live. In big cities, the risks of collisions and vehicle theft are greater, and this will affect the cost of your insurance. However, you can counter this by installing an anti-theft system in your vehicle if it did not come with one./li>
  • How many people use the vehicle and their profiles (age, use, and so on).
  • The coverage chosen. You can opt for additional coverage for risks like fire, theft, vandalism, glass breakage, and comprehensive accidents, or you can just choose the “all perils” option for every form of coverage. Other options are available, including coverage for damage to your vehicle caused by an at-fault accident. Finally, if you are insuring a new vehicle, you can add a replacement value endorsement so you won’t have to deal with vehicle depreciation in the event of a loss.
  • Your credit score. Studies on this topic show that a person with a good credit score is a lower risk for an insurer (e.g., well maintained vehicle).
  • Your driving record.
  • Your automobile claims file.

For all the criteria listed above, there are ways to improve your auto insuranceauto insurance premium.

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