Insurance companies insuring Canadian drivers set the cost of insurance. They are not in the habit of setting premiums according to finances. At least not in comparison to some of the countries like the US.
The Importance Of Finances For Vehicle Insurance
Insurance companies in Canada do not use a driver’s credit history. They do not use this to determine whether they are going to ensure an individual or not. The amount of money that a person is making is not a factor when it comes to car insurance. The car insurance companies use many other methods for determining the cost of insurance. As it pertains to an individual driver. It will depend on the driving history, the vehicle, and some other statistical factors.
Although finances don’t matter payment history stats do. Some individuals do not pay their insurance premiums. Then this gets factored into their availability to get insurance. Insurance companies will cancel a policy because of nonpayment or perhaps even late payments.
If an unemployed individual can pay their insurance premiums that’s all that matters. It is the way the insurance company looks at it in regards to the financial aspects.
No Discounts For Unemployment
Insurance companies are not going to offer a discount because an individual is unemployed. They may be having financial difficulties. The insurance company will assist with some suggestions. It will be suggestions on how they can lower their insurance premiums. It may be by cutting back on some of the coverage that they may not need.
Every driver in Canada must have the basic insurance. To be able to drive according to the law. The rates for the basic insurance will be much cheaper. Compared to when one has more insurance coverage added to it. It is the only concession that an insurance company may make.
Offering Discounts To Lower Premiums
The unemployed individual may be able to get their premiums lowered. By taking advantage of discounts that the insurance company they use offers. It could be a discount for having a good driving history. Or it could be a discount for using snow tires. Or it could be a discount for having certain safety features on the vehicle. Every insurance company is different in what they offer by way of discount. It is important that an individual shops for their insurance aggressively.
Less Driving For The Unemployed
It may be that the unemployed individual is not going to be driving near as much as they would if they were working. It is something that the insurance company may take into account. Some insurance companies offer a discount for reduced mileage driving. It could be some individuals no longer have to drive a long-distance. Notifying the insurance company of this may help with a reduced rate. On the other hand, many unemployed individuals end up driving more. It is because they are job hunting, so they are on the road more hours a day. So it could work in the opposite way.
Looking For Ways To Reduce Insurance Costs While Unemployed
It is not uncommon for individuals that are working not to take the time to shop for their insurance needs. As it pertains to their vehicle insurance needs. They will often take the first insurance company they become aware of. There is an opportunity to be able to use insurance quotes. As a way of insurance shopping, this can go a long way in reducing the insurance costs. Insurance companies in Canada cannot use credit checks. Or where a person works against them for their insurance. Unemployment of a driver is not a factor.
Again what will be a factor is the affordability for the uninsured individual. Now may be a good time to do some insurance shopping to see if there are better offers out there. Every insurance company is different in the way they set their premiums. An individual could be using an insurance company that is strict. About their mandates for premiums. The insured may not realize it.
With the ability to get quotes one can gather several of them and do comparisons within those. It is a sure way of being able to get the best insurance rates. An individual may want to stop driving their car during the period of unemployment. There may be an opportunity for them to be a second driver for another person who is driving in the home. The primary driver’s insurance may go up somewhat. It may not be as much as what the cost of having two vehicles insured would be.
Reduced Driving Distance
Some insurance companies may have taken into account the driving distance of the insured. As it pertains to travel back and forth to work. Not all insurance companies will do this. It is going to come down to the unemployed driver taking a look at their insurance policy. To see exactly what they are paying for. Now that they have a little bit more time to do this it is well worth doing. They may find that they are paying for a lot of things that are not necessary. For the short time that they are going to be unemployed, they may want to just reduce their insurance. Reduce it to the basic coverage. The premiums for this are going to be a lot less. Even for basic insurance, it is well worth shopping around for. There can be some big differences in the premium cost.
Good Driving History
It is at this time that the good driving history plays an important role in the cost of insurance. It is beneficial for drivers to have a good driving history combined with driving experience. They are going to get much better rates. One never knows what the future is going to hold for them by way of their financial stability or employment. Being able to count on factors that they have control of for their insurance is important. Like their driving record history. It is something that should be considered at all times to meet any unforeseen event.