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Postal Code Car Insurance
Postal code car insurance can play a big role when it comes to personal auto insurance costs in Ontario. Although the insurance industry is highly regulated, insurance providers try to be as competitive as possible. Every insurance provider has their own underwriting guidelines which mean no two companies will offer the same coverages or rates. Many factors will dictate an auto insurance rate and a postcode can be one main factor, along with a driver’s personal history of claims and convictions.
Why does postal code car insurance make a difference?
A postal code gives an insurance provider a geographical history of the number of claims a certain area has had over the past. If that number is high, the insurer will take that into consideration as the likelihood of more claims happening is greater. Even if you move across the city you can find a difference in your rate and it can be either positive or negative. Postal code car insurance is a factor to always keep in mind even if you are a few months away from moving.
Cost vs. Coverage
If you have moved and discovered your rate has increased the first thought is to bring that cost down. Many people will choose to sacrifice their coverages in order to lower their premiums. While it may seem like a good idea at the time, it may not be so when that accident happens and you are left with a large bill from an auto-body shop. Take your situation into consideration; how old is your vehicle? Would the cost of repairs outweigh its value? Discussing your options with a licensed insurance broker will help you come to an informed decision.
If you have found yourself in a similar situation and are looking for better options we have a range of providers we can quote you through. Call us today at 1-877-454-4476 or go to our quote page for more information.