Attention customers of: Intact Insurance, including Prestige; Jevco Insurance and Novex Insurance: if you’re driving less, you could be eligible for premium relief. Visit our Alerts page for more information.

Insurance Basics

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.