Your insurance premium is based on your car brand, model

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Your neighbour drives a BMV M Roadster, while you get around in a sporty Honda Civic SiR. You both have clean driving records and travel the same distance to work. The BMV is worth more than the Civic, but you’re actually paying more for auto insurance. You may be wondering why, and the answer is CLEAR.

Every vehicle make, model and year available in Canada is rated according to the Canadian Loss Experience Automobile Rating system – also known as CLEAR. This rating system assesses vehicles based on expected claims frequency, claims cost, and the likelihood of theft. This is part of how insurance rates are calculated. The lower the claims risk, the lower the rates and vice versa.

“Vehicles designed with more safety features are more likely to have lower insurance rates,” explains Glenn Cooper from Aviva Canada. “New safety features like an audible alarm system or an anti-theft ignition can prevent your vehicle from being stolen. The Honda is stolen more often than the BMV which adds to its insurance expense.”

According to the Insurance Bureau of Canada’s list of Top 10 Stolen Vehicles in Canada, the following cars and models were listed from 2013 to 2015:

• Honda Civic SiR 2DR

• Chevrolet TrailBlazer SS 4DR 4WD SUV

• Cadillac Escalade 4DR 4WD SUV

• Ford F350 SD 4WD PU

• Ford F250 SD 4WD PU

• Honda Civic 2DR Coupe

• Cadillac Escalade ESV 4DR AWD SUV

• Acura RSX TYPE S 2DR 2D

A cheaper car doesn’t necessarily mean a cheaper insurance rate. So before you decide to purchase your next vehicle, check if the model, make and year of your new car will affect your auto insurance rates.

More information is available from your insurance broker or from –  NewsCanada.

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