There are many factors that insurance companies consider to determine your auto insurance premium. A portion of your premium is determined by your personal situation – your age, gender, marital status, where you live, and more.
There is also a part that is determined by the vehicle you drive. The make, model, body style, and safety features included (or the absence of) in your vehicle are also considered in determining your auto insurance premium.
Focusing on CLEAR data
The Canadian Loss Experience Automobile Rating (CLEAR) is a system used by insurance companies to help determine auto insurance premiums. This system measures the likeliness of a vehicle being involved in a claim and what the claim is likely to cost.
The rating varies between the coverages in your policy, but the guiding principle is that the lower the rating is, the better. This could lead to lower insurance premiums. Conversely, if your vehicle ranks higher, this could lead to higher insurance premiums.
Did you know?
- Many vehicles have a CLEAR rating which you can see on your Certificate of Auto Insurance under ‘Rate Group’.
- CLEAR ratings are updated yearly.
- The Insurance Bureau of Canada has a number of resources if you want to learn more about how auto insurance rates are set.
Lower ranking vehicles indicate a lower claims risk.
This means you may get a lower auto insurance quote for vehicles that have safety features such as anti-lock brakes, dual and side airbags, anti-theft devices, and many more even if they have a higher purchase price.
Higher ranking vehicles indicate a higher claims risk.
This means that you may get a higher auto insurance quote for vehicles that have minimal or basic anti-theft/loss prevention or safety features, even if they have a lower purchase price.
Tip: If you’re considering buying a car, or just want to know where your current vehicle ranks, you can check the list on IBCs website: https://www.ibc.ca/insurance-basics/auto/how-cars-measure-up.
Learn more about personal auto insurance and commercial auto insurance to protect your vehicles.
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The content on this page is for information only. The insurance products described are subject to terms, conditions, limitations and exclusions that are outlined in the policy wording. Please refer to the policy wording for complete details.