How do insurance companies determine premiums?
Insurance companies determine premiums in different ways. When it comes to car insurance, there are a lot of factors:
- Your insurance history. How long you’ve been insured in the province you’re looking to get insurance in is one thing the insurance company considers.
- If you’ve been in any accidents or if you’ve received speeding tickets, the insurance companies will take that into account.
- How you use the vehicle is important. Is it for personal use, or is it part of your business?
- Companies take into account how much you drive. If you have a long commute it could increase your rate.
- Where you live is a huge factor in determining your rate.
When determining home insurance premiums, the factors are different:
- Your claims and insurance history
- Where you live
- What coverages you’ve selected. When it comes to home insurance, there is a lot of optional coverages to consider which will affect the premium.