Auto Insurance Qualifications

Auto Insurance Qualifications

Insurance may play a small part in your ability to procure an auto loan. On top of protecting your new vehicle, insurance also affects your overall monthly cost. For this reason, it should be among the first considerations when shopping for a vehicle. Our last post covered the auto loan process, so now let’s take a look at what influences auto insurance premiums and eligibility.

What Auto Insurance Companies Look For

In addition to the type of auto insurance, companies look at numerous factors concerning a driver’s behaviour and financial obligations:

  • History — Auto insurance companies request information on past collisions and traffic violations to assess risk.
  • Vehicle — Expensive vehicles often come with steeper insurance premiums simply because repairs cost more. Similarly, cars likely stolen or driven recklessly incur higher insurance charges. The quality and quantity of safety features in a vehicle may bring these rates down.
  • Location — Insurance rates correspond to a community’s theft and collision statistics.
  • Credit — Past payments come into consideration when applying for auto insurance, so learn how to give your credit report a boost.

Most Canadian auto insurers use the Auto Plus system, meaning they have access to a driver’s licence and policy number for application verification. Honesty and transparency help when requesting a quote.

Reasons for Denied Insurance Applications

Despite your unblemished driving or credit history, auto insurers sometimes respond negatively to inquiries. Denial of service may arise for several reasons:

  • Non-Renewal — Policyholders with too many claims may be denied renewal or may suffer from premium hikes.
  • Claims — Situation, policy deductible, and liability determine an insurer’s payout. Even drivers with protection run the risk of denied claims because of context.
  • Policies — Just because you already have one insurance policy does not mean you can secure another. Sometimes, a person with too many obligations may be denied.

Of course, failure to submit the proper documentation may also result in a blatant refusal of auto insurance. Know, however, that in such situations, not all is hopeless. Trillium Auto Group helps relieve drivers of this pressure by providing expert guidance every step of the way. Whether it’s a question about cars or credit, we’re here to help.