Understanding Car Insurance Premiums

When you're shopping for car insurance, every company is happy to give you a quote. But how do they come up with those numbers? In many cases, the choices you make affect the amount of your car insurance premium.

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Car Insurance Coverage and Deductibles

Insuring a $35,000 car for its full replacement value will cost more than getting minimal coverage for a vehicle worth $500. However, going for the lowest possible car insurance premium now means you might have to pay a lot out of pocket in case of an accident. Every province requires you to have a minimum amount of liability insurance. Beyond that, it's a balancing act.

A State Farm agent can help you make smart choices for your situation. Or get a free online car insurance quote to see immediately how your choices affect the amount of your premium.

Your Driving Behaviour

It's no surprise - drivers who get tickets or are involved in at fault accidents typically pay more for their car insurance premiums. Other factors like where you live and how much you drive will also affect your rates.

Car Insurance Rates and Discounts

Based on the policy options you pick and your driving history, an insurance company will quote you a base price. Qualifying for one or more discounts will reduce the cost of your car insurance premium.

State Farm offers competitive rates and discounts. For example, you'll see savings if you insure multiple cars together, insure your home with State Farm, or have multiple years of driving experience.

The Difference Customer Service Makes

Getting a low car insurance premium is important. It's also important to know that your insurance company will be there for you if an accident occurs. State Farm's agents and Claims Centres are committed to providing exceptional customer service. Whether you need to file a claim or just get a question answered, our Call Centre is available 24/7.

Talk to a State Farm agent or get an online car insurance quote to see how low your car insurance premium can be.

Visit our online Learning Centre to find:

Information to help you choose the right amount of coverage
Explanations of common deductibles and coverages