You and your neighbour might drive the same model of car or live on the same street, yet your home and auto insurance premiums can still be very different. Why insurance premiums may differ is a common question, and the answer comes down to the many unique factors insurers consider when calculating premiums.
1. Driving History and Claims Record: Even if two drivers have similar vehicles, their personal driving histories can significantly impact auto insurance rates. Tickets, past accidents, and claims, even ones where you weren’t at fault, can influence what you pay.
2. Coverage Choices and Deductibles: One neighbour might choose higher liability limits or comprehensive coverage, while another opts for a lower deductible. More coverage typically means higher premiums, even if the vehicle is identical.
3. Credit Score and Payment History: In some provinces, insurers may use credit-based insurance scores to help predict risk. A better score could lead to lower premiums, while a poor score could mean paying more.
4. Home Updates and Security Features: Two homes on the same street may have very different risk profiles. A house with a new roof, updated wiring, or a monitored alarm system may cost less to insure than one without upgrades or safety measures.
5. Personal Circumstances: Things like how far you commute, how often you drive, your occupation, or even whether you bundle your home and auto policies can affect your rates.
The Bottom Line: Insurance premiums are personalized, not “one-size-fits-all.” What works for your neighbour may not reflect your own risk profile or coverage needs. At Gibb Insurance, we help you find the right coverage at a fair price, tailored to you. 519-736-8228