CLEAR (Canadian Loss Experience Automobile Rating)
Insurers use CLEAR to estimate future claims more accurately and to price premiums fairly for owners who buy vehicles that experience fewer claims and smaller losses.
- What is CLEAR?
- How your vehicle’s CLEAR ranking affects your auto insurance premiums
- Safety first. How CLEAR helps the future of our vehicles.
- The CLEAR methodology
What is CLEAR?
In Canada, insurance companies use the Canadian Loss Experience Automobile Rating (CLEAR) system to assess how likely it is that a specific passenger vehicle will be involved in a claim and what that claim will cost.
Actual industry data including claims frequency, claims cost, and the likelihood that a vehicle will be stolen are used by insurers to group vehicles into higher and lower CLEAR rankings. However, CLEAR is just one factor used to determine your auto insurance premium – where you live and your driving record are also factors considered.
How your vehicle’s CLEAR ranking affects your auto insurance premiums
A lower CLEAR ranking indicates a lower claims risk, which can potentially lead to lower insurance rates. For example, insurers may quote a lower premium for a vehicle that costs more but has:
An advanced driver-assistance system (ADAS)
Dual and side airbags
Side-impact door reinforcements
A higher CLEAR ranking indicates a higher claims risk and may result in higher auto insurance rates. Insurers may quote a higher premium for a vehicle that is less expensive to buy and features:
Minimal or basic loss-prevention features
Lower-than-average or limited safety and accident-prevention equipment
Safety first. How CLEAR helps the future of our vehicles.
Used throughout the industry, CLEAR rankings are one factor amongst several used by insurers to set auto insurance rates. These rankings are also encouraging auto manufacturers to:
Build safer vehicles
Make vehicles less expensive to repair
Improve anti-theft features
The CLEAR methodology
The rate groups and differentials used to establish CLEAR rankings are developed using the following general steps: