When it comes to figuring out the price of your insurance premiums, the first thing people think of is usually your driving history. Though speeding tickets, fines, and DUIs can greatly impact the price you will be paying, many people don’t realize that your car information plays a critical role. The make, model, year, value, and cost to repair can all impact the cost of your insurance. So, how does your car information decipher what you’ll be paying for premiums?
We all know that when purchasing a new vehicle, different vehicles will cost more to insure than others. Insuring a fancy sports car or high-end electric vehicle will generally result in you paying more money out of pocket as opposed to an old used vehicle. However, it isn’t always this simple. There are many other underlying factors as to why the cost to insure a car is subject to change. Some car information that may affect your insurance premiums include:
- A car replacement value can depreciate quicker over time compared to others
- Some cars are less expensive to repair than others
- Some cars fare better than others in collisions, resulting in fewer injuries and less car damage
- Some cars are more susceptible to theft than others
- Some cars have more safety features than others
Figuring out how your car information will impact your insurance is crucial to figuring out how your premiums will look after purchasing. This is why it is important to do your research before making any purchases of new (or used) vehicles!
If you’re in the market for a new vehicle, or simply want to see how your current vehicle measures up for lower insurance premiums, you’re in luck. The Insurance Bureau of Canada (IBC) has created a ranking system that can help you figure out where a vehicle stands. Titled “How Cars Measure Up,” this ranking system shows the results for 2005 through 2023 car models, with at least 1,500 of each of the models insured between 2018 and 2023. This information was taken straight from actual insurance claims data, collected from most of the car insurance companies operating within Canada.
How Cars Measure Up
By using the data provided by IBC, you can choose a car that ranks better in its claims ranking. This can end up with potentially less expensive insurance premiums. You can sort through the data in the list by the following types of coverage claims:
- Statistics for Collision Claims across Canada
- Statistics for comprehensive claims across Canada, including theft
- Direct Compensation Property Damage (DCPD) across Canada
- Accident Benefits in Ontario
To make this easier, you can also sort data by car information, including the make, model, year, as well as body style.
What does each rating mean?
When it comes to finding how your car’s information measures up using these tables, the lower the result in each relative claim cost index, the better the ranking. According to the IBC, it is best to consider “100” to be an average rating in these categories. With this in mind, a ranking of “122” means the vehicle is 22% above average. A result of 85 will be 15% below average. The lower the rating, the better. To add to this, the IBC has also scanned the table by adding a colour code to each ranking. These are as follows:
- Green: A result of less than 81 (19% below average)
- Yellow: A result between 81 and 120
- Red: A result of more than 120 (20% above average)
White indicates that less than 1,500 vehicles were insured during the specified period. This means there is not enough data to report on that particular vehicle.
How can my car’s information help me save?
To save money on your premiums, it is important to research your options. On top of this, look into which insurance companies will give you the coverage, price, and value you are looking for. Private insurance companies offer a plethora of auto insurance policies. They compete based on price, coverage, and service. Speaking with an insurance representative will help you find the best options and value. Remember, if you’re in the market for a new insurance provider, don’t hesitate to reach out to us as isure! Our representatives can help you find the best policy for your vehicle. Contact us or request a quote today!
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