Auto theft has decreased in recent years, but it remains a serious problem in Canada. Thieves steal roughly 420 cars each day, according to the Insurance Bureau of Canada. This means that a car is stolen every three to four minutes! In the average year, auto theft causes 65 injuries and 40 deaths nationwide.
On a per capita basis, the least amount of car theft occurs in eastern Canada. Nova Scotia, Labrador, Newfoundland and Prince Edward Island report relatively few stolen cars, according to Kanetix. People in the Northwest Territories and Nunavut face the greatest risk of auto theft. The Automobile Insurance Rate Board reported that theft rates went down in all but two provinces during 2007. They increased in Nunavut and Prince Edward Island.
Some provinces have different types of car thieves than others. Drug users and teenagers often steal automobiles in western Canada, according to the AIRB. They usually take the cars for a short time before abandoning them. The cars may be damaged in joy-riding accidents. In Ontario and Quebec, organized crime syndicates steal cars to make money. Typically, they sell the parts or export the automobiles to foreign countries. Owners seldom recover these vehicles.
Some autos remain more likely to be stolen than others. About 54 percent of stolen vehicles in Canada are passenger cars, according to the AIRB. Most of the remaining automobiles are trucks, vans and sport utility vehicles. Only two out of 50 auto thefts involve a motorcycle. All recent vehicles in Canada have electronic immobilizers. These devices decrease the likelihood of auto theft by four-fifths, according to the Vancouver Sun.
Due to the lack of anti-theft devices, thieves are now inclined to steal older cars. Vehicles made after 1996 and before 2007 face the greatest risk; they are easier to steal, and they still retain significant value. Older luxury cars tend to have more security features than other vehicles, so they aren’t always the most appealing option for car thieves. More Toyota Venza SUVs were stolen in 2011 than any other model, according to Kanetix.
In 2002, the provincial government of British Columbia embarked on a successful effort to combat auto theft. The Bait Car program uses unattended cars and vans to attract thieves. The vehicles lack anti-theft devices, making them appealing targets. Authorities monitor the automobiles with surveillance cameras. In addition to helping the police apprehend individual car thieves, this program deters auto theft in general. The government recently expanded it to include campers, boats and other vehicles.
Langley was once known as the top city for auto theft in British Columbia. However, the Langley Times reported in 2012 that car theft had decreased by 65 percent since 2003. In combination with the Bait Car program, the use of electronic immobilizers in recent vehicles has helped to prevent thieves from stealing cars in Langley. Theft rates may also decrease in northern Canada as the vehicles become newer.
At the same time, it is seldom possible to completely bring an end to a major type of crime. Criminals often find ways to subvert new security systems. They also take advantage of carelessness on the part of their victims. Many car thefts can be prevented by locking doors and parking in easily visible areas. Drivers should never leave running automobiles unattended, even for a moment.
An at-fault accident will cause your auto insurance rates to rise. It will also leave a blemish on your driving record, keeping your rates high for several years. Even if your insurer offers accident forgiveness, your premiums will still rise a little. Yet, millions of people who go to great lengths to find low car insurance rates maintain driving habits that increase the likelihood they will cause an accident.
Below, we’ll explain the most common factors that lead people to cause collisions. We’ll also provide a few tips that will help you to avoid making similar mistakes.
Factors That Contribute To At-Fault Car Accidents
Driving habits that result in collisions are usually related. That is, drivers tend to demonstrate more than one, and often several. One common cause is speeding. Most people who drive faster than the speed limit are aware they are doing so. In fact, they often speed past signs with the limits posted.
Another factor is changing lanes without taking proper precautions. The adjacent lane may seem unoccupied, but keep in mind cars can slip into blind spots quickly.
Many people disregard signalling when making lane changes or turning. If they slow their vehicles without alerting the person behind them of their intentions, an accident can occur.
Distractions play a major role in causing collisions. When drivers’ attention is diverted from the road, they are less able to react to the conditions in front of them.
5 Tips For Avoiding Collisions
Given the effect an at-fault accident can have on your auto insurance rates, it’s worth considering your habits behind the wheel. Although the following tips may seem intuitive, there is a good chance you are neglecting at least one or two of them.
#1 – Eliminate Distractions While Behind The Wheel
Most motorists think of cell phones when they consider driving distractions. To be sure, using your phone – even a hands-free unit – while driving is dangerous because it diverts your attention from the road. But consider other things you do behind the wheel that have little to do with operating your vehicle.
For example, do you adjust the volume controls on your radio? Do you glance at magazines or newspapers? Do you drink coffee or apply makeup? All are distractions that increase the odds of causing a collision. Avoid doing them behind the wheel.
#2 – Practice Safe Driving Habits
Speeding, changing lanes without looking, following cars too closely, and failing to use your turn signals are unsafe driving habits. So are using cell phones, texting, and eating while driving. Each of these habits alone can lead to an accident. Those who demonstrate several increase the odds substantially.
Being a safe driver involves maintaining a constant speed (below the posted limit), allowing plenty of space in front of you, and using your turn signals. It also means avoiding distractions and noting road conditions. Taking these steps makes it far less likely you’ll cause a collision.
#3 – Adjust And Use Your Mirrors
Your car’s mirrors provide invaluable information regarding other vehicles. They inform you about their positions, speeds, and even the drivers’ intentions. Don’t ignore them. Use your mirrors constantly while on the road. Experts suggest checking them every fifteen seconds.
#4 – Don’t Rely On Traffic Laws
It’s tempting to assume everyone on the road will acknowledge local traffic laws. That is, motorists will maintain the proper speed, use their turn signals, and yield to stop signs and traffic lights. In fact, drivers violate these and other traffic laws every day.
Usually, other motorists simply accommodate the lawbreakers, thereby preventing and avoiding accidents. Sometimes, however, a single action by one motorist can have horrific results. Always stay alert, and watch other drivers. Don’t assume everyone is following the same rules. For example, when approaching an intersection, glance left and right before entering to make certain others intend to yield the right of way to you.
#5 – Minimize Lane Changes
Changing lanes while other vehicles are nearby always increases the likelihood of a collision. Even if you take every precaution before doing so, a speeding, careless motorist may unexpectedly occupy the space you intend to move into. Clearly, lane changes are often necessary. But bear in mind that the fewer you make, the lower your odds of colliding with another car.
A clean driving record results in lower auto insurance rates. Do everything possible to avoid causing an accident that sullies it. If, because of an at-fault collision, your rates are already high, now may be the time to compare quotes from competing insurance companies.
There is a high likelihood that you will be involved in an auto accident at some point in your life. It may be a minor fender-bender that causes little damage and no injuries. Or, the event might result in substantial property damage and severe injuries for those involved. It can happen at any time to any person, regardless of how safe he or she is on the road.
If you are blameless for a collision, your rates should remain unaffected. On the other hand, if your actions played a role, you can expect to pay higher premiums for years down the road. We’ll take a closer look at this issue below. First, you’ll learn how an accident is treated in a “no-fault” insurance system. Then, we’ll explain why your insurance company may be willing to “forgive” an at-fault accident, and what that “forgiveness” means for your rates.
Auto Accidents In A “No-Fault” Environment
Suppose you live in a province that has implemented a “no-fault” insurance system, and are involved in a collision. You and the other driver would submit your claims to your respective insurers to seek compensation for needed repairs and medical attention. It’s tempting (and reasonable) to think nobody is at fault, given the name of the system. In reality, from your insurer’s point of view, someone is always at fault.
Insurance companies rely on rules that help them to determine who is at fault for a collision. These rules are usually set by the government, and cover dozens of scenarios. Insurers can review them to identify which driver caused an accident, and if both were to blame, the percentage of fault that should be applied to each participant.
This means that causing a collision in a no-fault environment is still likely to result in a rate increase. It is important to understand the reason.
How Your Insurance Company Interprets An At-Fault Accident
Before your insurer extends coverage to you, they compile a profile that reflects the risk of loss you represent to them. Their assessment is based on several factors. One of the most important is your driving record.
Among other things, your record is considered to be an accurate gauge of the likelihood you’ll cause a collision in the future. It includes traffic tickets, convictions, and at-fault accidents that have occurred over the last several years. This information plays a key role in calculating your rates.
When you cause an accident after this risk assessment has been completed, your insurer must update the profile. This is necessary since the collision increases the level of risk you represent. Your rates may not increase immediately, but are likely to do so once your contract expires. The exception is if your insurance company is willing to “forgive” you.
Can You Ask Your Insurer For “Forgiveness?”
Many companies offer a special feature called accident forgiveness to some of their policyholders. This feature protects them from the rate increase that would usually follow an at-fault collision.
Earlier, we noted that insurers evaluate the level of risk policyholders represent based on their driving records and other criteria. The risk is reflected in a rating that is applied to each policyholder. Normally, an at-fault accident will cause your rating to drop, which in turn will cause your premiums to increase. If your insurer offers accident forgiveness, your rating is provided support. It may drop a little, but will be spared the plunge it would otherwise take.
This feature is handled differently by different insurance companies. Some extend it automatically to all policyholders who have a clean driving record (it is rarely offered to those with spotty records). Others extend it as an optional feature that can be added to a policy for a price. Additionally, the level of protection provided by this feature varies. Some insurers will completely “forgive” an accident while others will only partly do so.
Another thing to keep in mind is that this feature is only activated following a first-time at-fault collision. If you cause a second accident, your rating will not be protected. It will plummet, and your premiums will rise accordingly.
To summarize, a collision should only affect your rates if you are at fault. Even then, you may be forgiven. Ask your insurer whether they offer accident forgiveness to policyholders with clean driving records. If they don’t, this may be a good time to compare quotes from other insurance companies.
How much influence does your credit history have on your car insurance premiums? There is a good chance that it plays an important role. Many consumers are unaware that insurance companies often include credit-related data in their decisions to underwrite policyholders’ coverages. These same data are also used to set policyholders’ rates. It is important to be familiar with the way in which your credit history is used, and the reasons it is used in the first place.
In the space below, we’ll explain the differences between a conventional credit score and a credit-based insurance score (CBIS). You’ll learn why insurance companies use the latter, and how it helps them to make better underwriting decisions. We’ll describe the elements of your credit history that are taken into account, and offer a few suggestions for improving your CBIS.
Credit Risk Scores Versus Credit-Based Insurance Scores
When you apply for a credit card, line of credit, or mortgage loan, the lender submits a request to one of the credit bureaus for your FICO credit score. This score is used by the lender to determine your reliability in paying your bills. A low score implies habitual lateness or delinquency, which in turn suggests more risk to the lender. A high FICO credit score implies the opposite; you are more likely to pay your bills on time, and thus represent a lower risk of loss to the lender.
Credit-based insurance scores are used by insurance companies. The scores are calculated based on the same data used to calculate credit risk scores for lenders, but are derived from a different model. They are designed to evaluate the risk of loss associated with underwriting a prospective policyholder’s coverages in comparison to other policyholders.
This information is valuable to the auto insurer. It suggests the likelihood that insuring an individual will result in claims that lead to a loss. But CBISs also present other advantages.
Reasons Insurers Use Insurance Scores
One of the biggest challenges car insurance companies confront when calculating rates for policyholders is predicting whether those rates will produce a profit or loss. For example, suppose your insurer predicts that you are unlikely to submit claims. Based on this forecast, they offer to underwrite your policy for a low rate. Further suppose that during the time your policy is in effect, you cause three accidents, resulting in substantial, and costly, damage. Your insurer would suffer a significant loss.
By using an insurance score based on your credit history, your insurer hopes to better predict the likelihood that you will submit claims. More specifically, they can set your rates accordingly to avoid the loss demonstrated above.
Another challenge for insurers is to make accurate underwriting decisions, and do so efficiently. Rather than applying a different predictive model for each policyholder, and thus introducing substantial variance in results, the insurer can use CBISs to maintain consistency. This also allows the insurer to make faster decisions without sacrificing accuracy.
Factors Included In Your Credit-Based Insurance Score
To understand the role your credit history might play in your auto insurance rates, it is important to be familiar with the data used in your insurance score. The FICO CBIS used by many auto insurers takes into account five categories. These include the total amount you owe, your payment history, the number of inquiries and new accounts opened, types of accounts currently open, and the age of those accounts.
Each category is further broken down into several criteria. For example, your payment history includes payments that are past due, the delinquency of each past-due item, and any liens and collection items. It is also worth noting that the five categories are weighted differently. For instance, the types of open accounts is weighted at only 5 percent of your score while your payment history is weighted at 40 percent.
How To Improve Your Insurance Score
First, realize that insurance companies take several factors unrelated to your credit into account when determining your rates. Although improving your credit profile will have an effect, improving your driving record will likely have a larger one. Second, improving your credit-based insurance score takes time, similar to improving your FICO credit score. With that in mind, here are a few tips.
1. If you’re behind on payments, get current as soon as possible.
2. If you are carrying a high amount of revolving credit, pay it down. The faster, the better.
3. Avoid applying for, and opening, new credit accounts.
4. Avoid closing all of your credit card accounts. Keep at least one or two open, and pay down the balances.
One of the most significant factors in keeping your car insurance rates low is to shop around each time your policy is about to expire. As noted, raising your insurance score will help, but comparing quotes from multiple insurers will likely produce larger and quicker results.
Auto theft has decreased in recent years, but it remains a serious problem in Canada. Thieves steal roughly 420 cars each day, according to the Insurance Bureau of Canada. This means that a car is stolen every three to four minutes! In the average year, auto theft causes 65 injuries and 40 deaths nationwide.
How much influence does your credit history have on your car insurance premiums? There is a good chance that it plays an important role. Many consumers are unaware that insurance companies often include credit-related data in their decisions to underwrite policyholders’ coverages. These same data are also used to set policyholders’ rates. It is important to be familiar with the way in which your credit history is used, and the reasons it is used in the first place.