Auto Insurance

An auto insurance is similar to Home Insurance, it is a necessity when buying a vehicle. It is a cover for anything that can happen to the vehicle on the roads. MBE insurance provides free consultancy and benefits associated with the Auto insurance, according to the laws of Canada. The car has to be insured just like tested for Quality assurance, and can’t be on the roads unless it is fully insured for accident cover.

The key stats. That matters and need to be registered with the Vehicle are;

  • Driving license no.
  • Type of License
  • Make e.g. Toyota, Honda, Suzuki, BMW,
  • Model number, lease/financed.
  • Mode of buying methods e.g. Cash or cheque.1 month or 1.5 month before old insurance expires, as well as current policy information.

The premium is dependent on all the above stats. And is a term period is also decided for the cover according to the Current policy information.

COMMERCIAL & PRIVATE VEHICLES

The difference in insurance is similarly like Home insurance i.e. Commercial and private vehicles. For Private vehicles the insurances are different as the use is not for commercial or business purposes. The following are the vehicles for Business or commercial category;

COMMERCIAL CAT. VEHICLES

  • Used for business purposes
  • Private hire Vehicles
  • Vehicles from Transport Canada
  • Buses and other vehicles
  • Used for business purposes
  • Lorries and Trucks
  • Vehicles/Lorries carrying Cars for Show rooms

NON-COMMERCIAL CAT. VEHICLES

  • All Private Vehicles e.g. Vans, Cars, Motor Bikes etc.
  • All other Non-Commercial Vehicles used for Private purposes.

 The insurance differs for both the above categories as we have discussed earlier, however, it also matters the purpose of purchasing vehicles, and other such reasons.

FACTORS DETERMINING INSURANCE (AUTO)

The factors that determines an Auto insurance in terms of its price, and other aspects are as follows;

  • Amount of driving experience
  • Driver’s Records
  • Adherence to Traffic rules
  • Clearance from Traffic Police. (Or Accidental Records)
  • Age of the Driver
  • Your Location (Residential)
  • Vehicle Type & Make
  • The Date of Last Purchase.
  • Vehicle Age i.e. New or Used.
  • Vehicle Record e.g. Number of miles, Engine stats etc.

All these factors are the key factors that determine the Auto insurance value and the treatment of insurance and the companies

AMOUNT OF DRIVING EXPERIENCE

The amount of driving experience is the factor that determines the insurance value and tells volumes about the experience of drivers and how much they are prone for injuries and accidents. Also reveals key stats in terms of the driving speed, the knowledge and how mature he is to follow the laws. It is the insurance companies that recommend certain coverage for particular drivers, and that heavily depends on their experience of driving. If for e.g. there is a teen driver at home, it is better to have good personal liability coverage, as new drivers are more prone to make mistakes. The rates to cover small age or teen drivers will be automatically be higher as they are inexperienced and lack the driving potential than that of experienced drivers. The disadvantage associated with experienced drivers are that the insurance companies monitors their past records, e.g. moving violations or accidents and insurance premiums can be higher in case of such things i.e. known most commonly as mistakes or blunders.

DRIVER’S RECORDS

The driving record, is different from the amount of driving experience, and it is all the record in detail i.e. License records, any points on license if any, and record of all activities. There can be similarities in driving record, and amount of driving experience, but there are differences as well. All details are kept in mind for the insurance companies before making a decision for the premium.

ADHERENCE TO TRAFFIC RULES:

The strict adherence to the traffic rules and regulations is strictly needed as in Canada the laws are strict for the sake of insurance premium purposes. Following the laws is also a good practice, and part and parcel of the social responsibility that is associated with the citizens of Canada.

CLEARANCE FROM THE TRAFFIC POLICE

The clearance needed from the Traffic police is an integral clearance that is needed for the sole purpose of following the laws and making sure all the records are safe and free from any police record activity that can lay a negative impact on the driver’s license and hence insurance premiums.

DRIVER’S AGE

The age of driver matters in insurance premium. For new drivers or teen drivers the premium is higher as they can make more mistakes as compared to experienced drivers.

YOUR LOCATION(RESIDENTIAL)

One of the factors that determine the Auto insurance i.e. Location or place of residence.

VEHICLE TYPE & MAKE

Another factor that determines the Insurance of vehicle i.e. Type of Vehicle, and make. For e.g. Toyota, Honda, BMW, the insurance matter according to the value of vehicle, its engine size and its type e.g. Motor Vehicle.

DATE OF LAST PURCHASE

The date of last purchase another key characteristic that is determined as a factor for determining the Insurance.

VEHICLE AGE i.e. NEW OR USED

How old the Vehicle is, was it bought New, or used. All these things determine the insurance aspects associated with the vehicle.

VEHICLE’S RECORD E.G MILE

The mileage of Vehicle another factor in determining the insurance premium of the vehicle.

CONCLUSION

The bottom line is that to find an auto insurer research must be proper and find out the best deal according to the key statistics. A reliable auto insurance coverage an important element of auto ownership, as everything relies quiet heavily on auto insurance in Canada. One has to be a smart buyer with in-depth research, and taking a considerably good package that suits the budget as well as all coverage needs.