How We Calculate Your Auto Insurance Premium
Depending on the province you live in‡, several factors can affect the premium you pay for auto insurance. When you get a quote, we'll ask you questions like the ones below and take your answers into account when we calculate your premium:
Where do you live?
Where you drive and keep your vehicle can affect your premium in several ways. For example, if you live in an area where fewer accidents tend to occur, your premium may be lower. However, if you live in a big city, your premium might be higher than it would be if you lived in small town. That's because higher traffic density means more chances for accidents to happen.
What kind of vehicle(s) do you drive?
The type of vehicle you drive (such as a car or a motorcycle) and the make, model, age, cost and features of your vehicle can move your premium up or down. For instance:
- New and/or more expensive cars or vehicles may cost more to repair or replace
- Cars, SUVs and other vehicles that are stolen more often, or have a higher rate of occupant injury, are greater insurance risks
- If your vehicle has safety features that better protect the driver and passengers, you may get a break on your premium
If you're shopping for a new car or motorcycle, try getting an online quote for the various makes and models you are considering to see what the difference in premium would be for each.
How do you use your car, motorcycle or other vehicles?
Do you drive your vehicle to work or school each day? Or do you rarely use your vehicle? The less you drive, the lower your premium is likely to be. That's because when you spend less time driving, you're less likely to have an accident.
What is your driving and claims record?
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Do you live in Ontario? |
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We will decrease your deductibles by $50 a year until it reaches $0, for every year you are claim-free.
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We appreciate experienced and safe drivers, so the longer you drive without an accident, the lower your premium can go. On the other hand, every at-fault accident can increase your premium. Speeding tickets and other moving violations may also increase your premium, but parking tickets will not.
The number and type of claims you—or another party—have made against your auto insurance policy can also affect your premium.
Who else are you insuring?
Adding other drivers to your insurance policy will also add cost to your premium. You will, however, pay less if they are experienced drivers with good driving histories.
How much coverage do you need?
Another factor that influences your premium is the amount of auto insurance coverage you purchase. This includes:
- The number of vehicles you insure with the same insurer
- The amount of liability coverage you choose
- The deductible limits you choose
- The type of coverage you choose for your vehicles—such as protection against collision or theft
- Any endorsements you have on your policy (Also called "riders," endorsements are additional (sometimes optional) enhancements that increase or even reduce the amount of insurance coverage you would receive in special situations.)
All products and services are subject to the terms and conditions of the applicable insurance contract. In the event of any conflict, the terms and conditions of the insurance contract will govern.
All Licensed Insurance Advisors of RBC General Insurance Company are salaried employees.
Underwritten by RBC Insurance Company of Canada or RBC General Insurance Company.
‡Auto insurance is not available in British Columbia, Manitoba and Saskatchewan.
†The Online Discount is not available in all provinces, and where available varies by province, type of insurance, renewal term, and auto plan membership. Other exclusions and limitations also apply.
††This guarantee from RBC Insurance® is based on the accuracy of the information given and it remaining unchanged. Information provided is subject to verification.
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