Where You Live Can Increase Your Premium
Did you know that urban areas have varying degrees of higher claims costs? Higher density equals more risks, more accidents and more thefts. For example, using 2011 statistics, the average claims cost per vehicle in one city was 25% above that of a neighbouring city.
While there are good drivers in every city, on average, some areas have a higher than average claims costs than others. And as claims costs rise, so do premiums.
How CLEAR and Telematics Can Save You Money
Insurers use the Canadian Loss Experience Automobile Rating (CLEAR) system to assess the likeliness of your car being involved in a claim and what it will cost. Current data for each make, model and model-year of car is used to calculate expected and actual claims loss experiences. Choose a car with a lower claims risk and CLEAR number and you can expect a lower premium.
You can also learn about new cost-savings offered by telematics . By installing a technology device in your car that records your driving activities, insurers can use this information to personalize your insurance premium.