- How will your insurance quote Toronto rate be determined? There are two factors which will determine the amount that you will pay for your auto insurance. The first factor is rating and the other factor is underwriting. Insurance companies underwrite in order to assess the risk that is associated with the owner of the automobile, group the applicant with those that have similar risks and you need to decide if the insurance company will accept your application. Based on what will be the result in the underwriting process, the rating will assign a price based on what the insurer assess to be the cost in assuming financial responsibility for the potential claim of the client. Every company has its own system of rating, although there are some general guidelines which companies follow. One of the greatest influences on the rating scheme is the claim frequency. The claim frequency will determine how often an insured event will occur within a group.
- Specific factors that will affect your rate include the following: driving record, geographic territory, gender and age, marital status, model of your vehicle and prior insurance coverage.
- Ask your insurance agent about discounts. Discounts are oftentimes awarded as insurance company will see you as a better risk. Here are some of the discounts that you need to look out for: driver education courses, multiple vehicles, safety devices, good student, low mileage, anti-theft devices, auto/home package, good driver/ renewal and dividends. Not every state will offer discounts so you need to check with your agent in order to decipher if you will qualify for one.
- No fault system versus Tort system. Every state needs to implement either a no-fault system or a tort system. The system that your state has implemented will be the determining factor of the kind of insurance that will be available to you. The three basic coverage which are sold in the tort system are as follows: property damage liability insurance, bodily injury liability insurance and the uninsured motorist coverage. In the no-fault system, the coverage will vary. However, in this practice your insurance company will pay you directly for the losses that you will suffer as a result of accidents and injuries sustained in the incident regardless of whose fault it is. You can inquire with the insurance department in your area for questions regarding the no-fault state system or the tort system.
- Check into the optional coverage. One of the most popular coverage aside from the basic liability package is comprehensive coverage and collision coverage. Collision coverage will pay for the physical damage to your car which is the result of your car colliding with another vehicle or other objects like trees.