Are you a vehicle owner in Canada wondering why your car insurance quote feels higher than expected? You’re not alone. For many Canadians, car insurance is a major monthly cost. And if your premium has climbed recently, it can be frustrating to figure out what caused the change. The truth is, car insurance rates have been going up across the country. It’s not always easy to tell why, but once you understand the key factors insurers look at, the picture becomes much clearer. Here, we will share the main reasons why your insurance rate may be higher than expected—and what you can do about it.
Insurers build your rate based on how you drive, how long you’ve been driving, and what your history behind the wheel says about your risk level.
Insurers build your rate based on how you drive, how long you’ve been driving, and what your history behind the wheel says about your risk level.
Speeding tickets, distracted driving, or accidents on your record will bump up your premium. Even smaller infractions can nudge your rate higher, while more serious ones—like a DUI—can send it through the roof.
If you’ve made insurance claims in the past, especially multiple ones, insurers might view you as a higher risk. Some provinces protect you from rate hikes if you weren’t at fault, but not all insurers handle this the same way.
Yes, some insurers in Canada use your credit score when calculating your rate. It helps them predict the likelihood of a claim or missed payment. They need your permission to check it, and you can refuse, but knowing your score beforehand can help you prepare.
Not all vehicles cost the same to insure. What you drive plays a huge role in shaping your quote.
Luxury cars, sports cars, and models that are expensive to repair or replace usually come with higher premiums. On the other hand, vehicles with a good track record for reliability and safety tend to be cheaper to insure.
Cars that include systems such as anti-lock brakes, blind-spot monitoring, and automatic emergency braking might earn you a discount. These features reduce the risk of injury and damage in a collision.
Auto theft is on the rise in Canada. If your car has built-in theft protection—such as a factory alarm, immobilizer, or tracking device—your insurer might reward you with a lower rate.
Insurers use data to figure out how expensive a vehicle is to fix or replace. This system, called CLEAR, helps them estimate how likely a claim is and what it might cost. If your car is less costly to fix, you’ll probably pay less for insurance.
EVs can sometimes cost more to insure. While they’re great for the environment—and some insurers offer “green” discounts—they often come with pricier parts and fewer repair shops, which can push premiums higher.
Your location plays a surprisingly big role in your insurance rate.
If you live in a busy city with lots of traffic and higher theft rates, your insurance will likely be more expensive than someone in a quiet rural area.
Insurers look at accident and theft data by postal code. If your area has more incidents, your rate could go up. It’s a good idea to check your neighbourhood’s trends when comparing quotes.
The more you drive, the greater your chances of having an accident. So, if you use your car daily for a long commute, expect a higher rate than someone who just drives occasionally on weekends.
What you choose to include in your policy directly affects your monthly cost.
Basic insurance only covers damage you cause to others. Comprehensive coverage protects against things like theft, vandalism, and weather-related damage too—but it costs more.
Opting for a higher deductible can reduce your monthly premium, but it means you'll need to cover more costs yourself if you ever file a claim. It’s important to weigh this carefully and choose an amount you’d feel confident paying in an unexpected situation.
At Begin Insurance, we understand that every driver’s needs are different. Whether you use your car for daily commuting, weekend getaways, or business, your insurance should reflect how you drive and what you value most—affordability, protection, or peace of mind. That’s why we take a personalized approach to help you find coverage that fits your vehicle, your lifestyle, and your budget.
Our team works with you to explore options, explain coverage clearly, and uncover discounts you might not know about. Whether you’re insuring a brand-new SUV, an electric vehicle, or a dependable sedan, we’re here to help you make smart, informed choices. To know more, get in touch with us.
Posted Jul 26, 2021