Westworld Alberta
Issue link: http://westworldmagazine.ama.ab.ca/i/68789
S 46 WESTWORLD >> JUNE 2012 What's Driv Understanding your auto insurance Still think a red car will cost more to insure than a blue one? Suspect you're paying more than you should for your policy? Separating fact from fi ction can help you save – and set your mind at ease. Vital statistics It's a numbers game: drivers under the age of 25 and over 85 have a greater probability of collisions and traffi c violations, and their higher insurance rates refl ect that. Female drivers under age 25 have better driving records on average than their male coun- terparts and may qualify for better rates. (For instance, in 2010, there were 1,971 men aged 20 to 24 involved in casualty collisions in Alberta, but only 1,250 women in the same age bracket.) Under-25 married drivers of both sexes usually net better rates than their single male counterparts for similar reasons. Hear that, guys? After age 25, as a driver's experience increases, rates tend to go down. But there's hope for new drivers: completing an Alberta Transportation-licensed driver-training pro- gram, such as AMA Driver Education, can earn them a certifi cate that gives them expe- rience credit toward a better rate category. "If you're teaching your kids to drive yourself, you're actually missing out on an opportunity for some savings," says Bob Hillman, AMA Insurance vice-president of fi nance. Location, location If you call Calgary home, you'll pay more for insurance than you would if you lived in Black Diamond – for the same vehicle. Why? In the city, you're statistically more likely to get in a collision because of higher population and traffi c density. More risk means paying more. "On the liability side, there are way more claims in urban areas, though in the rural areas, you usually pay a little bit more for comprehensive insurance, because you get collisions with animals," says Hillman. Make, model and year Quick, what costs more to insure: a red, souped-up two-door or a grey, four-door sedan? Many people would point to the bright-and-sporty two-door because it's more likely to be driven fast and furious. But colour and number of doors don't fi gure into the equation. Make, model and year are factors, though. And the hierarchy may surprise you. For example: based on AMA's rate index, the cost of comprehen- sive insurance on a 2010 Honda Civic Si is more than double that of a 2010 Nissan Sentra 2.0, a vehicle of comparable size and value. This is because Honda Civic models hold three of the top 10 spots on the Insur- ance Bureau of Canada's list of most stolen vehicles in Alberta (among models manu- factured between 1998 and 2010 – see ibc.ca). Number one on this dubious-honour roll? The 2006 Ford F-350. Second place goes to the 1990 Dodge Neon. Sexy sports cars don't even crack the top 10. Vehicles that are expensive to repair or replace also command higher premiums, so iStock