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Mythbuster: Does the type of car you buy affect your insurance rate?

Myth: The type of car you buy doesn’t have an effect on your insurance rate.

Yes it does.

Fact: The Canadian Loss Experience Automobile Rating (CLEAR) system identifies the average size and frequency of insurance claims for most makes and models of cars. Most insurance companies use CLEAR to rate vehicles according to their safety record and the cost to repair or replace them, and may offer lower premiums to drivers who buy cars with better ratings.

For example, some vehicles may be more susceptible to theft than others; some may be better designed and less easily damaged; some are less expensive to repair; and some protect their occupants in collisions better than others.

Checking how different types of cars are rated before you buy could really save you money when it comes time to insure your new car. Learn how your car measures up. Visit the Insurance Bureau of Canada (IBC) to read their fact sheet on the statistics that affect the cost of car insurance for particular makes and models of cars.

The Insurance Bureau of Canada (IBC) also produces an annual list of the top 10 stolen vehicles in Canada. Learn the top ten for 2016

We’re here to help!

If you’re considering buying a new car, talk to an OTIP insurance broker to find out how the type of car you choose will affect your insurance rates. One of our brokers would welcome the opportunity to find you the best coverage and value for your needs.

Call us today at 1-800-267-6847

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