Premium Calculations Within reasonable limits, some of which are prescribed by law, your auto, home and/or business insurance premium is calculated to reflect the probability that you may suffer a claimable loss. When you make a claim, you draw funds from the pool of insurance premiums paid by all policyholders. Those who are unlikely to draw from the pool pay less than those who are more likely to draw from it.Insurers take many factors into consideration when determining the likelihood that you may have a loss. A common misconception is that a policyholder who has never made a claim should pay less, or very little for insurance. While it is true that your claims history is important, generally the location of the risk is also very important.Shop Around for Best Premium ValueWhen you buy or renew an insurance policy, private insurance companies compete on the basis of price, coverage and service. They offer consumers and businesses choices when buying auto, home or business insurance. Your insurance representative can provide expert guidance on the best value and coverage for your needs.Auto Insurance PremiumsInsurers consider the make, model and year of your car, the driving records of the drivers in your household who drive the car and where you live. Learn more about how auto insurance premiums are calculated.Home Insurance PremiumsInsurers analyze a variety of factors to determine how likely it is that you – and others with the same set of circumstances – may make a property insurance claim and what it will cost. Learn how home insurance premiums are calculated. Different insurers may use different factors to develop premiums, shop around for an insurer whose premium credits and discounts best match your particular situation. Business InsuranceThis coverage is also called commercial insurance. When calculating a business insurance premium, insurers consider a number of factors such as the type of business you run and the risk management strategies you have in place. Commercial insurance is complex. Make sure you have an insurance representative who understands your business and its insurance requirements. Related ServicesHow Insurance WorksInsurers use a pool of many premiums to pay for the home, auto and business losses of Canadians unfortunate enough to experience a loss. You are covered for losses outlined in your contract only, not for predictable events.Buyer BewareInformed buyers carefully review their insurance policy and policy limits. Know what to look for when reviewing all sections of auto, home or business policies.Where Premiums GoThe premiums of many policyholders pay the claims of the few who suffer a claim. Insurers put premiums toward a mix of claims costs, investments and operational expenses.Insurance MythsLike any industry, a variety of myths surround insurance. Consumers of auto, home and business insurance may have misconceptions about policies and coverage as well as how the industry operates. Learn some key facts about the Canadian insurance industry.ReinsuranceLike other businesses, insurance companies, require protection against risk. Insurers buy insurance from another insurer to reinsure risks they assume. The additional insurer is known as a reinsurer. Useful LinksAuto InsuranceRequired by law across Canada, auto insurance covers the owner/driver, passengers, pedestrians and property affected by a vehicle collision.Buying Home InsuranceAs a homeowner, you need to insure your house for replacement costs so that in the event of serious damage or destruction you have adequate coverage. Be sure to keep your home insurance current by reporting material changes or upgrades.Business Insurance CoverageInsurance protects you from losses that may pose a significant threat to your business operations. A major loss to one organization may be a trivial loss to another. When selecting coverage, deductibles and policy limits, there are many factors to consider.Insurance VendorsInsurance is a significant financial investment so it’s worthwhile to learn about your buying options. You can buy insurance from a broker, agent or direct writer.