Here you can learn about the relationship between car insurance premiums and various factors that may affect them. The different indicators that insurance companies look at are much more comprehensive than this list, however this post may introduce you to the concepts used by insurance companies in pricing their auto insurance coverage.

Driving Experience – Statistics show that drivers who have been on the road for a long time are less likely to be at fault in an accident. Insurance companies may provide lower insurance rates to drivers who had their license for many years (assuming other factors are in good standing).

Date of birth – age is an important factor that affects auto insurance premiums. Young drivers usually pay higher insurance premiums, since they are viewed as riskier drivers. Statistics collected over the years confirms that young drivers are much more likely to get into a crash collision than older drivers.

Your Automobile– the type of vehicle you drive might greatly affect your Ontario car insurance quotes. Sports cars along with vehicles that have a lot of power cost more to insure. Vehicle anti-theft and safety options also affect car insurance rates.

License suspension – be prepared for an increase in auto insurance payments once insurance company is made aware of license suspension. Your license can be only suspended if you break the law while driving, which tells insurance companies you did something very risky that could (or did) cost them money.

Crashes and insurance claims – in most cases insurance costs go up, regardless of who caused the accident.

Tickets– If you regularly break the law, you are more likely to get into an accident than a safer driver who does not break the law.

Gender – as discriminatory as it might seem, male drivers are usually viewed as riskier than females. If a male and a female of the same age with the exact car and exact driving record were to apply for auto insurance with the same company, female would get a lower rate. The age factor in male vs. female differences may only hold considerable weight for younger drivers, and decrease for older drivers.

Auto alarm system – it is obvious that a car with an alarm is harder to steal than the one without.

Parking location – a car parked in the garage is less likely to be stolen than the car parked on the curb, or in an open parking lot.

Keep in mind that factors listed above, and those that are not listed, are all combined together to give an overall picture to the insurance company. One factor alone may not affect the rate much; however combined together they can change insurance rates greatly!