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The Vehicle You Drive Affects How Cheap Your Car Insurance Rates Will Be

Your Vehicle Affects Car Insurance Rates


When you’re on a quest to find cheap car insurance, there are a lot of different ways you can save. Check out our post here with tips on cutting your insurance costs.

Of the myriad of factors to consider, one of them is the type of car you drive. Insurance providers use the Canadian Loss Experience Automobile Rating (CLEAR) to come up with rates (learn more here). The fewer the claims and the smaller the losses predicted by this rating for your vehicle, the less you will pay for coverage. Let’s get into how your vehicle can (or can’t) get you the best car insurance rates a little further.

Factors for choosing a vehicle for cheap car insurance

How fancy/expensive it is – This is what most people think about when it comes to car insurance rates and the type of car. If you drive a clunker you will obviously pay less for insurance than a luxury imported sports car. If it will cost an arm and a leg to repair or replace the vehicle, insurers must take this into account when quoting rates.

How easy it is to steal – if breaking into your car is easy as pie, this will affect your insurance rates. This makes your vehicle more of a target for thieves and makes it more likely to be either stolen or robbed. This in turn means that you are more likely to make an insurance claim, hence the rate adjustment. Learn more about vehicle theft and car insurance here.

How attractive the car is to thieves – thieves are getting more and more savvy when it comes to stealing cars (as we discussed here). They are looking for cars that will offer them the most return, whether they strip the car for its parts, or they export the vehicle for resale. Take a look at the most stolen vehicles in Ontario to get a sense of which cars are the top targets for theft. You can check out the list here for 2021. 

How safe the vehicle is – In addition to factoring in theft rates as we touched on above, this CLEAR rating also takes into consideration the safety features on a vehicle, since they can make accidents less likely or mitigate the amount of damage that will result from a crash. Yes, it will cost more for a car with the best tires, dual and side airbags, anti-lock brakes and side-impact door reinforcements to name a few safety enhancements, but this can translate to lower insurance rates.

Consider ditching collision coverage – if you are driving an old car, you already know that it is cheaper to insure. You can save even more by dropping collision coverage. If you figure that if the car is in a crash, it will be done for anyways and you wouldn’t get much for it, this could be a way to go. Discuss this option with your insurance broker or provider to ensure that it is the right strategy for your car.

Power tip: Provide your VIN (vehicle identification number) when looking for car insurance quotes. This ensures that the insurance rates you are offered accurately reflect the car you drive. You don’t want to be quoted for a more expensive make or model.

The Insurance Bureau of Canada has put together “How Cars Measure Up” for models from the year 2000, using data from car insurance companies across our country. Check it out to get further details on the make and model that you drive.

So whether you are in the market for a new car, or want to get a better understanding of how you vehicle stacks up, doing some research can help you identify how a particular vehicle affects you getting the best car insurance rates. You can also discuss with your provider how your vehicle could help you get cheaper prices for coverage.

Get in touch with our team to discuss further, or zip over here to start your car insurance quote online.


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