How age affects auto insurance
The younger you are, the riskier a driver you are, statistically speaking, which means that young adult drivers are likely to be charged more for car insurance.
The Alberta government notes in its 2021 collision statistics report that, based on collision rates per 1,000 licensed drivers, male drivers aged 18 to 19 “were more likely to be involved in a casualty collision than any other age group.” (The next most likely? Males aged 16 to 17.)
Insurance rates tend to start declining at about ages 23 to 25. And starting at about age 50, insurance rates may go down further because older adults are generally considered to have less risky lifestyles and more experience behind the wheel—depending, of course, on when you got your licence. Data from Ratehub.ca, a comparison site for financial products that also gives insurance quotes, shows that in Alberta, insurance premiums decrease starting at age 60 and rise slightly starting at age 70. (Ratehub.ca and MoneySense.ca are both owned by Ratehub Inc.) If you’re a retiree and/or mature driver, ask your insurer about discounts.
How the type of vehicle you drive affects your insurance
Not all cars and trucks are created equal, especially from a risk perspective. Some are more likely to be stolen, while others have more safety features. The AIRB says that a vehicle’s make, model, year and ease of repair also affect insurance premiums, as they impact the costs to fix and replace the vehicle.
How your driving record impacts your insurance premiums
Anyone with a history of traffic tickets and driving convictions in the past three years and/or previous auto insurance claims in the past six years will likely be charged a higher-than-typical auto insurance rate.
Your driving record will also list any driver education you’ve had and how long you’ve had your licence. Insurers consider this information when deciding on your quote. (The more driver training you’ve had, the better!)
Why your vehicle use matters
If you’re in Calgary and are a daily driver or someone who puts a lot of mileage on your car on a regular basis, you may be charged a high car insurance rate. The more often you drive, the greater your chances of getting into an accident, not to mention the wear and tear on your car.
No driveway? If you park on the street most days, your vehicle is also at a higher risk of getting hit. But if you keep your vehicle in a garage when it’s not in use, there’s less likelihood of it getting damaged—and you might get a discount on your insurance.