Tips for Protecting your Driving HistoryPosted On March 6, 2011
When Insurance Companies calculate your insurance premium, a number of general factors are used. First, you as a driver are given a classification of “risk”. This classification is based on whether or not the vehicle is regularly used for driving to and from work, or for business, or simply for a pleasure vehicle. If you are under 25, your sex and marital status are used to help determine your classification. When you are over 25, being married or single bears no relevance to the classification, nor does being female or male. Another general factor is the region of the Province in which your vehicle is primarily used.
Insurance Companies collectively maintain statistics on each and every accident that occurs in Canada, and in each Province. The vehicle and the driver and the region are “classified”, and with this information insurance companies can determine which age groups, male and female, cause accidents. With this information, insurance companies determine how many premium dollars they must collectively generate to pay the losses for that particular classification of driver.
Once your classification is determined, then Insurance Companies begin the task of discovering your individual driving record and that of your “vehicle”.
Your Driving Record includes all drivers of the vehicle and more importantly, includes any accidents or incidents that took place with your vehicle regardless of who was driving!!
This is an important fact that few people are aware. If you loan your vehicle to a friend or neighbor and that friend has an accident, it is your insurance company that will have to respond to that claim, and it is your driving record to which that claim and accident will attach.
Be careful when loaning your vehicle!
1. Make sure that the driver has a valid drivers license. Your insurance driving record will be affected when you permit people with no license or a suspended license to drive your vehicle.
2. Make sure that your drivers follow the rules of the road. A conviction of an offence of any driver of your vehicle will affect your own driving record and premium, and if the offence is severe enough, will affect your own ability to buy insurance at market prices.
3. Understand that any damage done by your vehicle to pedestrians or other property or other vehicles will be your responsibility, paid by your own insurance company, and be considered “your accident” when next calculating premiums for you.
4. If you carry Collision and Comprehensive coverage, and your own vehicle is damaged, this will also be treated as “your accident” when determining premiums.