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It is not unusual for individuals that go to get car insurance to be somewhat shocked by how much it is going to cost. It doesn’t take long for them to discover that there are a lot of factors that can affect this. The problem is to bring the insurance rates down it takes time. Knowing what factors into the insurance cost can help one make the right decisions.

1. The Driver’s Licence


Getting a new drivers license will have an effect on vehicle insurance.

There are three phases to getting a G license in Ontario.  The first stage is where you will write your written test. Then the next step is the practice phase where you receive a G2 license. During this stage, you can take driving lessons. The driving school should be an accredited on. It can help to reduce the cost of the vehicle insurance.

The premiums are in part based on the amount of experience you have with driving. New drivers do not have that experience, so they have higher insurance rates.

2. Your Driving History

Insurance Companies are good at gathering information about drivers. They do this through the driving history of those that they are going to ensure. They use resources like the driver’s history. The Insurance Company can get various documents. Such as the statement of driving record, accident reports, and driver’s license history.

Depending on which document the Insurance company uses it will provide ….

A three-year collection of driving history on the driver;

  • Driver’s name
  • Date of Birth
  • Gender
  • Licence number
  • Class
  • Conditions/restrictions
  • Convictions Under Highway Traffic Act and Criminal Code of Canada
  • Any Licence reinstatements ( for the last three year period)
  • Earliest license date
  • How many demerit points have been accumulating
  • Expiry date
  • Height
  • Status information
  • Driver education course completion date

There is also other information that may be available. Some information is only available to law enforcement and government agencies like addresses.

An insurance company can even get access to an accident report. It may pertain to an accident the insured driver was involved in.

3. How Much A Driver Drives

Insurance Companies want to know approximately how much a driver will be driving. It makes sense because the more time the driver is on the road, the more risk exists for a claim being filed. These companies will want to know if the vehicle is for driving back and forth to work. If so, what is the driving distance for this? They may even want to know where.

4. Insurance Companies Rely on Statistics


The Insurance companies need to use as many resources as possible. These will help them make judgment calls. These judgment calls pertain to how much insurance should each driver pay. Some of the following relate to statistics that these companies will rely on.

 5. The Age of the Driver

Age plays a role in the insurance companies decisions when it comes to cost for vehicle insurance. The older a driver is, the more driving experience they will have. This experience helps to lower their insurance rates.  Young drivers experience higher vehicle costs. However, the other end of the age spectrum is now affecting insurance rates. These companies pay attention to insuring aging drivers. As such the insurance rates tend to climb again after drivers reach a certain age.

6. The Gender of the Driver

Statistics seem to show that male drivers in Canada are more apt to issue an insurance claim. When compared to women drivers it creates higher premiums for the insured males.

7. The Address

Where a person lives can affect their insurance premiums. Many people are not aware of this.

Insurance companies have variations in rates by area or neighborhoods. They use the vehicle statistics for an area to help them reach their conclusions. For example, some areas have a higher population. Or some neighborhoods have a higher crime rate that involves vehicles. All of this can have a bearing on the insurance costs for the insured.

8. The Type of Vehicle

One may wonder why insurance companies would care about the make, model and year of the vehicle. It is because they are looking at their potential cost related to it. The insurance company may have to pay for repairs or vehicle replacement.  The make, model and year are going to determine the price for this. Expensive cars are far more costly to repair and replace. The sports and high-performance vehicles may create higher risks. It is all these various factors that the Insurance Company will think about.

9. Driving Infractions

Driving infractions fall into the category of driving history. However, it is an extra segment of the history they will pay attention to.  Many different types of driving infractions exist. Most concerning are the infractions that take place with a moving vehicle. It is these the Insurance companies are most concerned about. As such, parking violations do not play a role in determining insurance costs.

When reviewing the driving infractions the insurance company will focus on some specific areas. There are minor infractions. The Insurance Company won’t put as much emphasis on these. More of concern will be the major infractions. Plus, how often are these infractions repeated is of concern.

Demerit points are a big consideration.  Drivers need to avoid accumulating demerit points. They create a higher the risk for increased insurance premiums.

10. The Good Factors That Can Affect Vehicle Insurance

drivers education

There are a lot of negative things that can affect vehicle insurance. Also, there are several positive things that can do so as well. Such as….

  • Taking the accredited driver’s education training
  • Striving to Maintain a clean driving abstract
  • Being aware of the potential insurance discounts that can help to reduce insurance rates. For example, limited mileage driving.

11. Shopping for the Insurance Deals

The way one shops for insurance can affect insurance rates.

Many assume that all insurance is the same. It is not the case. Getting insurance quotes is beneficial. Comparisons with these quotes may help to find better deals.  These are based on the individual’s specific circumstances.

About the Author: Ashley Miller

Ashley is an insurance content professional and very knowledgeable on all related subjects. Ashley has over 12 years of insurance content writing experience working with various insurance companies throughout her career.