The Impact of Safety on Auto Insurance

October 2nd, 2014  |  Insurance

Safety and auto insurance are interconnected. Safety plays a large role in how much you will pay for your insurance rates. Auto insurance costs are based on perceived risk. Insurance company’s base their rates largely based on how much of a risk they perceive you to be and safety plays a role in this perception.

Therefore, the more you can do to lessen the risk of you getting into an accident and being a safer driver, the more likely it will be you pay less for your auto insurance. From an insurance perspective, there are a number of safety factors that will influence your rates, including:

1. Vehicle safety features: The more safety features the better. Vehicles that have more vehicle safety features and have a better overall safety rating will be viewed more favorably by insurance companies, resulting in a cost saving on your auto insurance premium. Keep this in mind the next time you are shopping for a vehicle. 
2. Winter tires: Having winter tires is essential for Canadians and insurance companies love them too! Having winter tires will make your vehicle easier to control on slippery roads and you could quality for a discount on your rates as well. 
3. Anti-theft devices: Taking steps to make your vehicle more difficult to steal is important. Therefore, having an anti-theft device installed in your vehicle, such as a car alarm, will protect your car and qualify you for an auto insurance discount from your insurer. 
4. Not driving a car that is theft prone: There are cars that are easier to steal than others – and thieves know which ones to target. From a safety and risk perspective, insurance companies will charge a higher premium for vehicles that are on the most stolen list. And, if you drive one of these vehicles, you can expect to pay more for your rates. To avoid this, make sure a vehicle is not on this when you are shopping for a new vehicle. 

Other safety related factors such as parking your vehicle in the garage and even the city where you live can also have an impact on safety and your auto insurance rates. 

What steps do you take to make your vehicle safer? Has it helped you to lower your auto insurance rates and save money?