5 Questions About What Can Affect Your Car Insurance Rate
You want to get the best rate possible for your car insurance. Did you know that there are a number of factors that can affect how much you pay for ICBC auto insurance in British Columbia?
Here are five common questions you should understand about what can affect your car insurance rate.
1. Can the age and model of my car affect my insurance rate?
Yes. Car insurance rates vary from driver to driver and vehicle to vehicle. Certain vehicles are more prone to theft, are involved in more accidents, or are more expensive to repair — all of which can increase the cost of your car insurance.
Vehicles with strong safety ratings, advanced safety features, and lower repair costs may qualify for lower premiums.
In many cases, older vehicles are cheaper to insure because they have a lower replacement value.
2. Do parking tickets affect my car insurance?
Parking tickets do not directly affect your car insurance because they are not moving violations and do not indicate driving risk. They do not appear on your driving record and are not visible to insurers.
However, unpaid municipal parking tickets can prevent you from renewing your driver’s licence, registration, or licence plate. Many municipalities offer early-payment discounts, so it’s best to pay parking tickets promptly.
Keeping a clean driving record is important, as drivers with violations or claims are considered higher risk and typically pay more for insurance.
3. How does my age affect my car insurance?
Younger drivers generally pay higher insurance rates because they are statistically more likely to be involved in accidents due to limited driving experience. Many drivers begin to see lower rates around age 25, assuming they maintain a clean record.
For older drivers:
- Drivers in their 60s: Often continue to benefit from lower premiums if they have a clean record and no recent claims.
- Drivers in their 70s: Premiums may increase slightly as insurers consider age-related risk factors.
- Drivers in their 80s and older: Insurance rates may be higher due to increased risk assessments.
4. What discounts can I get to save on my car insurance?
- Claims-free discounts: The longer you remain claims-free, the more you may save on your car insurance.
- Experienced driver discounts: Years of licensed driving, continuous coverage, and a clean history can lower your premium.
- Soft credit checks: In many cases, a soft credit check helps your Western broker find the best available rate without impacting your credit score.
- Low annual kilometres: If you drive fewer than 10,000 kilometres per year, you may qualify for low-mileage discounts.
- Additional discounts: Some insurers offer savings for winter tires, vehicle safety technology, retirees, and long-term loyalty.
5. If my friend borrows my car and is in an accident, does their insurance pay for the damage?
No. Your car insurance policy covers the vehicle, not the driver. If you lend your vehicle to someone else and they are involved in an accident, your insurance policy and premiums may be affected.
Before lending your vehicle, make sure you trust the person driving it and that they are properly listed on your ICBC insurance policy if required.
You can also save money by bundling your car insurance with home insurance in British Columbia. Bundling often provides a meaningful discount and allows you to manage both policies with a single payment.
