5 pieces of information you need when you apply for car insurance

August 1st, 2016  |  Auto

In Canada, car insurance coverage is mandatory no matter where you live. As a result, it’s important to make sure you purchase what the right coverage when you buy a car or expect to drive.

If you recently purchased a new car or are looking to get a new insurance quote, here are five pieces of information you need before talking to a broker:

1. Credit history

The most important bit of history you can take to your insurance broker could be your social insurance number. By allowing the insurance broker to run a credit check, you could lower your car insurance rates. Strong credit scores indicate that the driver is more responsible than a person with a poor credit score, and that can translate into the insurance company providing a better rate.

2. Driving history

Unfortunately, while credit history travels with you throughout Canada, driving histories don’t transfer from province to province. This means that a person who’s recently changed provinces might have a hard time finding inexpensive insurance.

To avoid being seen as a new driver in your new province, order a copy of your driver’s abstract from your provincial ministry of transport before moving. This abstract can be used by the insurance companies to determine how good of a driver you are and will lower your insurance premiums.

3. Insurance history

Also before moving, request a letter of experience from your insurance company. This letter can be used as further prove of good driving experience once you move to a new province.

All drivers should also prepare a list with how many accidents, tickets, and suspensions they’ve received in previous years, as it will have an effect on insurance rates. To avoid being surprised, discuss this list with your insurance broker to see if s/he can find a good rate despite a poor history.

4. Car details

Not only will the insurance broker ask you about the make, model, and age of your car, but s/he

will also ask you details about the car’s safety features. Before visiting the insurance broker, research your car a little. Does it have an anti-theft device that you forgot about? Do you have a lane departure warning system? Little things like this could impact on your car insurance premium, resulting in a lower cost for you.

5. Driving habits

The amount of time you drive and where your car is parked also affect your rates. Having a job with secure, garage parking lowers your premiums, just as having a garage at home lowers your premiums. A shorter commute, or one that avoids high-risk areas, can also have a positive effect on your car insurance rates.

Information is power, especially in the insurance world. Knowing these five pieces of information and bringing them to the insurance broker gives you a better chance of getting a good insurance quote. Without this information, or when you answer the broker’s questions with guesses, it is harder for insurance companies to assess how risky you are to insure. They make up for it by providing high rates – or no rates at all. Be smart and be informed to save money on car insurance.

The best rates on insurance

Our hunters will find you 7+ quotes in 3 minutes or less.

Home Insurance