What You Need To Know About The “ins and outs” Of Insurance #AutoXplained

What You Need To Know About The "ins and outs" Of Insurance #AutoXplained

Auto insurance can definitely be a dry topic, but we’re here to tell you that it’s so incredibly important – especially after we’ve seen so many celebrities get in outrageous wrecks over the course of our days here at the fabulous Celeb Dirty Laundry. Does anybody remember when Lindsay Lohan, our dear sweet ginger, crashed her Porsche? We do. Let’s just say we hope she had some insurance on that bad boy.

If auto insurance intimidates you, no worries, because we thought we’d take a few moments to talk a bit about what you can do to control the cost of auto insurance, the factors that are (or should be) taken into account when getting your getting your car insured, and how premiums are calculated.

1. What can you do to control the cost of auto insurance?

There are a few steps you can take to control the cost of insurance, and we suggest trying to seek out bundle packages that ensure both a car and home or multiple cars at the same time – and try to stick with the same agency, as it can help you stay organized and dealing with less hassle. You could also buy a car with a lower-cost insurance rating or drop collision coverage on an older car.

2. What factors are taken into account when getting a car insured?

These are the main factors that are taken into account when getting your car insured . . . . Where you live, type of car, your driving record, what you use your car for, you’re driving coverage, and the list of drivers on your insurance.

3. How is a premium calculated?

Premiums are calculated based upon the number of risk factors that apply. Your individual risk factors include car usage (ie: driving for a living),  and your driving record. Demographic risk factors include multiple facts like your age group, where you live (urban vs suburban vs rural residence). Many years of data are analyzed and reviewed in order to determine insurance rates for Canadians.

What You Need To Know About The "ins and outs" Of Insurance #AutoXplained

There you have it, folks! A bit about car insurance. Insurance details can be super boring and lame, but it’s a necessary topic to discuss, and it’s so much better to be in the know than it is to navigate the industry with blindfolds on. Let us know if you have any questions!


Disclosure: Although this post has been generously been sponsored by IBC, the opinions and language are all my own, and in no way do they reflect Insurance Bureau of Canada.

  • HollywoodHiccups

    There is so much to learn about insurance, thanks for passing on!

  • Robyn

    Thanks for posting I am always confused about insurance.

  • Nicole Adkisson

    We have been with Geico for a lone time now; they’ve been great!

  • Robin Rue

    Thanks for posting this. I find car insurance confusing and the agent always ends up telling me what coverage to get.

  • Terry My Journey With Candida

    My Granddaughter just learned the hard way about car insurance. I am sure she wishes she would have had someone explain things to her. To late now.

  • Pamela

    Great post, insurance can be confusing!

  • A Shiny O’Connor

    Is insurance legally required in US and Canada? You can’t drive a car in Ireland without it.

  • Insurance is confusing.

  • EmilyTrainham

    This is good information, I’m so bad at this stuff.

  • busybeeblogger

    Thank you. I’ve often wondered about my premiums. :-)

  • allie

    I always bundle!

  • allie

    It’s good to shop around

  • Debi@The Spring Mount 6 Pack

    This is good for me because I am pretty much clueless, even after all of these years.

  • Lean Lacaba

    I think car insurance really is great, especially for those accidents and you don’t have the money to cover for it.

  • MakeHerUp

    Only issue with Canadian auto insurance is there is no competition. Doesn’t make for the best prices.

  • Jocelyn

    Everyone should shop around!

  • allie

    Insurance is that necessary evil