The claims history in a geographic area affects rates.

How is car insurance rates determined. To determine geographic area the application will ask for the address where the driver will garage their vehicle. People often wonder how auto insurance rates are determined as they differ from driver to driver and from provider to provider. Factors such as population density weather road design and maintenance and the crime rate of a.

Each insurance company determines their own rates within the confines of legally defined minimums and maximums in certain provinces and decides how much weight they will put on. In contrast others are private Quebec is a hybrid of the two. Insurers assess many factors including your driving record when calculating your premium.

However those are just some of the factors that decide how much your car insurance. How much youre expecting to drive in a year is also. Insurance companies use professionals called actuaries who use math and statistics to help determine the financial consequences of the risks associated based on the information you provide.

This is due to higher rates of thefts vandalism busy traffic and accidents. Generally the harder your car is to steal and the less expensive it is to repair the less you pay for insurance. The Insurance Bureau of Canada.

How car insurance rates are determined depends on the provider you choose and the insurance laws in your state. Shifting to learn more about auto insurance. The Financial Consumer Agency of Canada.

Your insurance rates are also determined in part by the type of car you drive. The Financial Services Regulatory Authority of Ontario. For example in some states it is illegal for insurance companies to use credit scores to determine auto insurance rates while in others it is completely commonplace for providers to use credit history driving records and occupation to determine your rates.