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Why Is Car Insurance So Expensive in Surrey?

by admin

Many factors will influence how much you pay for car insurance, but one thing that appears to be universal is people in Surrey feel like they are paying too much. Even with recent changes to ICBC insurance coverage, drivers in British Columbia pay some of the highest car insurance rates in Canada.

So what determines how much car insurance costs in Surrey? And what can drivers do to reduce their annual premiums? This blog will examine the main factors that impact car insurance quotes and offer a few tips on how you can get the best rate.

Basic Autoplan and Optional Insurance Coverage

Before breaking down a few of the things an insurance broker will ask while giving you your auto insurance quote it’s important to note that your insurance can be broken up into two parts. There is the mandatory ICBC Basic Autoplan which all drivers are required to have. Then there are optional insurance coverages which drivers can choose to add to their Basic Autoplan insurance for additional protection. Drivers must go through ICBC for their basic coverage; however, they are free to shop around third-party providers for optional car insurance products, which could net significant savings over purchasing optional insurance through ICBC.

What Determines Your Car Insurance Rates in Surrey

Insurance brokers will look at several factors when calculating your car insurance premiums. First is your Driver Factor.

Driver Factor

Your driver factor is based on your driving experience, accident history, and age. A lower driver factor score indicates a lower risk profile, which can reduce premiums. This factor combines with crash-free years, improving over time as you maintain a safe driving record.​

Territory

Where you live also affects your car insurance rates. ICBC divides British Columbia into 14 territories and assigns each different risk profile based on population density, road conditions, and typical accident rates. Urban areas like Vancouver and Surrey have higher crash risks, impacting rates differently than rural regions​.

Rate Class

This considers how you use your vehicle. Drivers who primarily use their vehicles for day-to-day activities like running errands, driving kids to school, or short trips have different risk factors than someone who uses their vehicle for business purposes or long daily commutes.

Vehicle

The make, model, year, and value of your vehicle are also considered when calculating optional insurance coverage. Newer and higher-end vehicles typically incur higher premiums due to increased repair and replacement costs.

Other Drivers

ICBC also wants to know if anyone else will be using your vehicle and their experience and driving history will impact your car insurance rate.

Saving Money on Your Optional Car Insurance Coverage in Surrey

Now that you know what factors an insurance broker will consider when giving you your insurance quote, let’s cover a few ways you can save money on your car insurance.

Shop Around

As previously mentioned, while all drivers are required to have ICBC Basic Autoplan, you’re free to explore other providers for optional coverage. Shopping around can provide more competitive rates, especially if you decide to bundle say your car insurance with home or renters’ insurance policies.

Take Advantage of Distance-Based Discounts

ICBC provides savings for drivers who clock a few kilometres annually. If you drive less than 5,000 kilometres per year, you may qualify for a distance-based discount.

Maintain a Clean Driving Record

The best thing you can do to lower your car insurance rates is to maintain a clean driving record. Avoiding accidents and tickets will lower your driver factor each year, helping you qualify for a better rate.

Consider Your Vehicle

Newer, luxury or high-powered vehicles generally have higher insurance premiums due to their significant repair and replacement costs. If you’re looking for an easy way to lower your rates, consider an older model vehicle with a reputation for safety and lower repair costs​.

Increase Your Deductible

Opting for a higher deductible on optional coverage (like collision or comprehensive) will help reduce your premiums. You can choose a deductible as low as $300 or as much as $2,500. Just keep in mind, that if you ever do need to make a claim, you’re financially responsible to cover the higher out-of-pocket portion.