Canadian Loss Experience Automobile Rating (CLEAR)

The CLEAR system rating is an accurate and credible assessment of the expected and actual claims loss experience for each make, model and model-year of private passenger vehicle. 

The CLEAR system is built upon insurance claims data. Insurers use CLEAR to assess how likely it is that a specific vehicle will be involved in a claim and what that claim will likely cost. CLEAR is one factor among several used to determine your auto insurance premium. Other factors include where you live and your driving record.

Every model of car and light truck for every model year is grouped according to assessed risk – its expected claims frequency and cost and the likelihood that it will be stolen. A higher CLEAR number indicates a higher claims risk. A lower CLEAR number indicates a lower claims risk which is reflected in lower insurance rates.

CLEAR Benefits for Consumers

Insurers use CLEAR to predict future claims more accurately and fairly price premiums for owners who buy vehicles that experience fewer claims and smaller losses. For example:

1. Vehicle A has anti-lock brakes, dual and side airbags, side-impact door reinforcements, anti-theft devices and premium tires. 

  • This vehicle costs more but may have a lower CLEAR system rating. 
  • Insurers may quote a lower premium for this vehicle.

2. Vehicle B has minimal or basic loss-prevention and/or safety features. 

  • Due to the limited number of features and equipment, this less expensive vehicle may have a higher CLEAR system rating. 
  • Insurers may quote a higher premium for this vehicle.

Across Canada, insurance regulators and consumer associations support the CLEAR system. By rewarding consumers for buying cars that are less likely to incur insurance losses, the system also encourages manufacturers to: 

  • Build safer vehicles
  • Make vehicles less expensive to repair
  • Add features that make vehicles less likely to be stolen.

How Data Drive the CLEAR System

CLEAR uses insurance claims data to assess expected and actual claims experience of all vehicles made for the Canadian and U.S. markets. Each year, all rate groups are updated to reflect such factors as aging and experiential changes. Data is provided by:

  • IBC
  • Groupement des assureurs automobiles (GAA)

After being checked for consistency, the data is mathematically adjusted to eliminate influences that are not directly linked to the vehicles. Information about vehicle characteristics is obtained directly from automobile manufacturers and importers.


The 5 steps in developing a CLEAR rate group