1. 617 POINTS
    Waltere Koti
    Principal Agent, First Insurance Agency Inc, United States
    Your questions refers to "different provinces," but I would supposed you mean "different states" except you reside outside the United States of America. Now back to your question, Auto Insurance Rates are influenced by several factors in different states or localities. Among them is claims experience in that state or locality. If you are a single male aged 20 and live in lets say New York city and lets say 500,000 vehicles were involved in some sort of collision, theft or vandalism in 2014 and your college friend lives in some city in West Virginia where all you see is farm land and few cars. Total number of vehicles involved in any collision, theft or vandalism are 500 in 2014. Then question that is posed is what is the probability of your vehicle being in a collision in West Virginia? The answer is very low and as a result you pay low premium as compared to your friend who lives in New York. Insurance is all about probability.
    Answered on June 2, 2015
  2. 21750 POINTS
    Jim Winkler
    CEO/Owner, Winkler Financial Group, Houston, Texas
    That is a great question! There are many factors that go into determining rates charged by insurance companies in their auto policies. Remember that their focus is always on the risk that you might have to file a claim, and get paid. Since that is the focus, the more risk, the higher the premium they will charge you (so it doesn't cost the company as much when they do have to pay out. It seems wrong, but trust me, you would much rather have insurance if God forbid you are in an accident than not...). Things like accident rates where you live, the number of claims filed annually, theft rates, number of uninsured motorists, and average vehicle cost will all be factors in what they will charge you. If your province is heavily populated and there are a lot of cars, accidents, and crime it is wise to expect that your auto insurance rate will be higher than if your province is fairly rural, and crime and claims are low. It really is all about the risk. Thank you for asking!
    Answered on June 4, 2015
  3. 37376 POINTS
    David G. Pipes, CLU®, RICP®
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    Auto insurance rates ultimately reflect the experience that a company has. An insurance company cannot be allowed to lose money because they will eventually go bankrupt and be unable to keep their promises. Insurance in the US is a state responsibility and it is the state commissioner that approves the rates and the way that the rate is determined. In my state, California, the electorate took over the matter of rating and greatly limited the factors that could be considered. Whoever approves rating plans in your province could provide specific information about the manner in which rates are determined.
    Answered on June 9, 2015
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