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Top 7 Factors that Affect Auto Insurance Rates

top 7 factors that affect auto insurance rates f

It is legally required in Canada to have a valid auto insurance policy. While the idea may seem quite simple, there are many considerations to determine how much insurance you should pay every month. As a leading brokerage having qualified auto insurance brokers, we have put together this guide to help you make an informed choice.

Factors Affecting Your Auto Insurance Quotes

Type of Car & Age

Your vehicle is a significant variable when it comes to determining the rates of your auto insurance quotes. If you want to reduce the rates of your policy, it helps to choose vehicles that have a reputation for being affordable when it comes to insurance coverage. Also, new cars have a lower premium when compared to older ones.

Your Age

There is a common misconception among people that auto insurance rates tend to reduce when you turn 25. Although this is not typically true, your age is an essential factor when choosing coverage for your vehicle.

Driving Experience

Your experience is a critical factor that determines the premium amount of your auto insurance policy. An individual with minimal driving experience will be priced differently as compared to someone who has been driving for many years.

Location of Driving Experience

In addition to the years of driving experience, your location also plays a crucial role in determining the rates of your car insurance policy. For instance, in Ontario, only your North American driving experience is considered. If you are from outside North America, such as the United Kingdom, you will be treated as having no driving experience in the province.

Driving School Discount

It helps to attend a recognized, reputable driving school and have a valid certification. Most insurance companies will consider it when you purchase a policy. They value your effort to learn traffic laws and safe driving practices. This will help you lower your auto insurance premium rates.


If you have driving convictions, you may have to pay a higher insurance premium. Although some insurance companies may accept new policyholders with up to 6-7 minor convictions, there should not be any serious records. This is why it helps to maintain a good driving history.


If you are driving your car only for commuting to work, your insurance company will treat it differently as compared to using it for business purposes. There are different policies if you want to use your vehicle as a means of employment, and the rates will differ accordingly.

We Offer Reliable Auto Insurance Quotes at Great Prices

Reliable Auto Insurance Quotes at Great Prices

Orr & Associates is a leading auto insurance brokerage having qualified brokers to help you. We will work to understand your needs and come up with the best coverage customized to meet specific requirements.

If you are looking for affordable auto insurance coverage, please call us at 905-833-6691 or toll-free 1-866-521-5926. You could also fill out our online form to get an auto insurance quote online.

Also Read:

What You Should Know About Bundling Insurance Policies

Do Speeding Tickets Affect Automobile Insurance Rates?