When an Ontario car insurance company is setting rates for a customer, it looks at a number of factors. The type of vehicle that a customer drives is one of them. The insurer will likely rate the make and model based on the likelihood that it will be involved in an accident or stolen, as well as what the average cost of repairs would be.
An insurance applicant’s driving record is another factor that an Ontario car insurance company will consider when setting rates. If the individual has been involved in one or more accidents where he or she has been more than 25 percent at fault, he or she will likely be charged higher rates. The company will also consider how long a person has been licensed, as well as whether the applicant has completed a recognized driver’s education course.
Annual mileage plays a part in how much a person is charged for his or her car insurance in Ontario. The more time a person spends behind the wheel, the more likely he or she will be involved in an accident and the insurance company will charge higher rates because of this fact.
Customers who live in urban areas are charged higher rates than their rural counterparts. More cars are stolen in cities, and the fact there are more vehicles on the road in these areas increases the likelihood of an accident occurring.