Auto Insurance Premiums Are Very Costly

Some of the things that determine how much you pay for auto insurance are listed below.

• What Type of Vehicle you Drive
There is a clear difference between makes and models of cars in regard to safety. Moreover, higher-end cars attached to a bigger price tag are more attractive to car thieves and are more expensive to replace; they are also more expensive to fix after an accident.

• Your Address
If you live in a place that has a higher crime rate, your premium will reflect the risk of theft. If you locality has proportionately more auto accidents and submitted claims, it will have an effect on your premium as well.

• How You Use Your Car
If you use your car for the commute to and from the workplace or use it for business purposes, you’ll find that you will have a higher premium than those that drive just to go to the grocer or for leisure trips.

• If You Are a Good Driver
If you never have gotten a driving ticket or never been an accident, you will have a lower insurance rate than those who have a less pristine driving record.

• Your Claims Record
If you have previously filed insurance claims, especially if they have resulted in big payouts, your insurance premium will reflect that. But you may also find a rate increase if you have only filed claims in regard to accidents where you are not at fault.

• How Old You Are
Young drivers, especially boys in the teen years, are grouped together as riskier drivers because the statistics say they display poor driving habits and are involved in and cause many more serious accidents than older drivers. To a lesser degree, those sixty-five and older may find their insurance rates up due to age matters that contribute to poorer reflexes, eyesight issues and more.

• Marriage Status
Studies show that husbands and wives are not involved in as many collisions as those who are not married.

• How Your Credit Rates
Though this may not seem fair to some, insurance companies may class you as a driving risk due to your poor credit score.

Essential Car Insurance Facts

Auto insurance rates in Alberta are determined by a variety of factors:

  • Your gender and age
  • Your driving experience
  • Type of vehicle you drive
  • Location and use of your vehicle
  • Your driving record
  • The amount of coverage you’ve selected

How to get the Cheapest Auto Insurance in Alberta

Compare rates among various companies and don’t feel like you must stick with the insurers your parents used. There are many insurance providers available, and often they use competitive pricing, meaning different providers may offer the same policies at greatly different prices. Talk to a broker (who compares auto insurance rates in Calgary for you) or use online tools to see where you can get the best rate for the coverage that is right for you. As well, reading auto insurance reviews will help you avoid unexpected issues. Search online for opinions using blogs and forums.

Sometimes you can get better rates if you bypass the broker or agent and deal with a direct insurer, like Belairdirect or TD Insurance.

Use rate tools and calculators. For instance, if your credit card includes rental car protection, you can save 20 per cent by paying with it. You can use a credit card navigator tool to assist you in finding insurance for a rental car compatible with the value add-ons on your credit card. You can also use an insurance price comparison tool to compare insurance premiums.

Mobile Telematics Are Making Our Roads Safer

These are all common mantras one hears in most conversations surrounding mobile devices and car use. And with good reason; often, those who utilize their phones while driving are doing so at the expense of paying attention to the road, endangering their own lives and the lives of those around them.

But what if it were possible to use mobile devices safely in the car? Better yet. What if it were possible for mobile phones and tablets to actively make driving, well, safer?

Sound too good to be true? It isn’t — all thanks to the rising tide of mobile telematics solutions that allow auto insurance companies to engage with their customers like never before. Mobile telematics solutions harness the power of portable, everyday devices, such as smartphones, smartwatches, and tablets in order to meet customers on “their territory”. These applications, according to Intellimec, offer “a unique opportunity to transform [… ] The market by leveraging technology the majority of consumers already have”. After all, the vast majority of drivers already owns at least one of these devices and use them daily in order to maintain communication, consume news and entertainment, and even regulate multiple social media channels.

As a result, auto insurance carriers around the world and across the United States are steadily embracing usage-based insurance (UBI) methods. UBI allows these carriers to collect massive amounts of real-time data on their policyholders’ driving patterns and behavior through telematics applications specially designed to track usage patterns, frequent destinations and routes, and even traffic or weather conditions during accident or crash scenarios. This insurance providers may tailor their plans and policies to each unique driver.

But what telematics features specifically create these safer roads for drivers? Let’s explore a few of them.

Premium Tech for Both Insurers and Policyholders

You’ve probably heard the phrases “cloud-” and “SaaS-based analytics” systems thrown around the insurance and admin verticals in recent months. Cloud-/SaaS analytics are shaping up to be the backbone of auto insurance; such systems offer astoundingly configurable dashboards that allow you and your drivers to make sense of the live data stream from the mobile app and web portal. Consequently, businesses can now customize their policies and premiums to their clients’ driving history. Simply put, drivers are rewarded for “good” behavior — and this translates into safer roads for all!

Advanced Informative Tools and Data Collection Capabilities

But what actual tools within the system enables such fastidious information management? The best mobile telematics apps keep track of all your hard brakes, rapider-than-usual acceleration, time spent behind the wheel, and even your most highly frequented locations and routes. As aforementioned, these features work together to create reports of your driving patterns, as well as to suggest safer or faster routes to your usual destinations.

Telematics applications can even distinguish drivers from non-drivers in order to create accurately configured reports for both monthly updates and FNOL claims filing. Policyholders may even receive live updates on traffic and impending weather, Furthermore, the most advanced systems contain teen driving programs, offering parent/guardian-sanctioned location and speed parameters to help beginner drivers develop safe driving habits. Even with social media can play a role if the users so wish; drivers operating on telematics networks can interact with each other to exchange useful tips, creating safer, more well-protected driving conditions for all drivers.

Improved Customer Engagement On and Off the Road

All of the above tools formulate an environment in which clients and insurers interact with each other on more equal footing — and within relationships build on deeper trust. Auto insurers are able to collect raw data from consumers, who no longer need worry about providing evidence of conditions after accidents. Mobile telematics transform the client-business relationship from one based on burden of proof and accusation, to one based simply on creating better driving conditions for every driver.

Info of Car Insurance or Vehicle Insurance

Broadly, car insurance policies cover six high risk categories, the premium payouts are based on the pricing for each of these separately.

• Accident or collision cover
• Bodily injury liability
• Comprehensive
• Medical
• Property damage liability
• Uninsured motorists’ coverage

Accident cover or collision cover – provides accident and injury coverage for policy holder if he sustains injury while travelling in an insured vehicle, along with damages to the insured vehicle.

Bodily injury liability or third party legal liability – a driver may be legally required to pay compensation if his car causes injury to a third person or results in the death of a third person. Most car insurance policies provide cover against legal liabilities that are caused by accidental damages to third person and property. The coverage limit for injuries or death is not fixed and depends on a case-to-case basis.

Comprehensive – some insurance policies cite this as ‘Vehicle Damage’ which includes natural calamities. Comprehensive generally excludes accidents but includes theft, and damage to car from natural calamities such as earthquake, explosion, fire, flood, hurricane, landslide, lightning, falling objects etc.

Medical – also known as Personal Injury Protection (PIP), this covers medical treatment of injuries to the occupants of the insurance holder’s car at the time of an accident. It can extend to include medical or hospital bills, lost wages and some other clauses which may vary.

Property Damage Liability – provides cover against damage by the policy holder to third party property. The coverage for property damage is mostly defined.

Uninsured motorists’ coverage – this covers treatment costs for the insurance policy holder from injuries sustained through accident or collision with an uninsured driver or vehicle. Although not all state insurance rules specify or require that car owners must have insurance to cover all these risks, they recommend minimum liability cover for bodily or personal injury protection and property damage.

Other elements that are included as add-on risks depending on need or request from policy holders are:

• Auto replacement
• Rental car coverage
• Towing coverage

Accident Insurance

Although the original insurance companies were built on the notion that accidents result in bad consequences, this is not always the case. Who, after all, can claim they do not enjoy a bite of a chocolate chip cookie? Have you ever heard someone complaining about eating a potato chip? And what about modern medicine and the amazing cures they provide? Many of these beneficial products were created by… you guessed it – accidents!

Blessed Accidents

• When a cookie business owner realized she did not have the baking chocolate required for her recipe, she improvised by using a standard bar of chocolate. She reasoned that the chocolate would melt in the oven and become equivalent to the ingredient she lacked. Lo and behold, the chocolate bar in the finished cookie product was her claim to fame as the dotting chocolate chip version became an instant success story.

• After discarding an experiment dish in the trash, scientist Sir Alexander Fleming took a second look: why, the utensil was full of mold that continued to break up bacteria around it! The ‘accident discovery’ led to something amazing – a seeming miraculous drug, known as Penicillin that benefits mankind in every nook of the world to this very day!

• Engineer John Hopps thought he could cure hypothermia by inventing a device that would restore a person’s normal body heat temperature. With radio frequency, he chanced upon what we know today as the pacemaker, used by heart doctors all over to save patients’ lives!

• Who wanted a dish of burned groats? Not two brothers who left the scorched pot full of black contents on top of the stove. When the blackened groats became thick and dry, the men took note. Skimming off the moldy parts, they created the very first bowl of cereal made from corn that you can buy off the supermarket shelves in modern times!

• One disgruntled chef at a resort hotel decided to get even with a pesky patron who kept on complaining about the fried potatoes he was served. The chef fried extraordinarily skinny potato slices that were difficult to munch on. Surprise! Surprise! The customer smacked his lips in appreciation of the first delicious round of potato chips!