Top 10 Factors That Affect Car Insurance Rates in BC

As British Columbia residents navigate the vast sea of car insurance companies, understanding what affects your car insurance rate can be a real money-saver. Here are the top ten factors influencing car insurance premiums, tailored specifically for our B.C. audience.


Age plays a significant role in car insurance pricing. Young drivers, particularly teen drivers, often face higher insurance costs due to their lack of experience and perceived risk. On the other hand, older drivers, typically those over 70, may also see increased rates due to the potential for health-related driving issues.

Driving Record

A clean driving record can significantly lower your auto insurance rate. The better your record, the lower your premium. Why? Because car insurance companies value safe drivers who are less likely to be involved in at-fault accidents and are practicing safe driving habits. Conversely, drivers with a history of traffic violations or accidents are considered high risk as they demand more car repair costs, leading to increased insurance premiums. Therefore, the less speeding tickets, car accidents, parking tickets, etc. on your record, the more access you’ll have to “safe driver discounts.”

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Insurance Company

Not all insurance companies offer the same rates. Factors such as business expenses, profit margins, and market strategy can lead to considerable differences in how much each insurance company charges. Shopping around and comparing rates can help you save money on your auto insurance premiums. That’s why partnering with an experienced auto insurance agent is essential to finding affordable insurance coverage.

Years of Driving Experience

Alongside age, your years of driving experience significantly impact your auto insurance rate. Drivers with more experience are generally considered less risky by insurance providers, translating to lower insurance costs. Therefore, experienced drivers could be eligible for a lower insurance premium.


Where you live and park your car in British Columbia can affect your car insurance costs. Areas with higher crime rates or a high incidence of accidents might result in higher premiums. Conversely, safer neighbourhoods typically have lower insurance rates.

Discount Options

Insurance companies often provide discount options that can help reduce your insurance premiums. Some discounts may be related to the driver’s age, occupation, marital status, or if the car has safety features installed. As your insurance provider, ask us about any discounts you might be eligible for to save money.

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Insurance History

Your history with previous car insurance companies can also impact your insurance costs. A history of missed payments or lapses in coverage can make you a high risk to an insurance company, potentially increasing your premiums.

Distance Driven Annually

The more kilometers you drive each year, the higher the chance of being involved in an accident, which can increase your auto insurance rate. If you have a history of traveling fewer kilometers annually, be sure to let our insurance company know as it could lower your premiums. For example, ICBC’s distance-based discount could lower your car insurance rates if you drive less than 10,000 kilometers in a year.

Claims History

A history of many insurance claims, especially at-fault accidents, will raise red flags for your insurance provider. To maintain lower insurance premiums, aim to drive safely and avoid making small claims that you could afford to pay out of pocket.

Coverage Level

The level of coverage you choose, such as opting for comprehensive coverage or adding collision coverage, affects your auto insurance rate. Higher levels of coverage mean higher premiums. However, this also ensures better protection in the event of an accident, theft, or damage.


Understanding what impacts your auto insurance policy rates empowers you to make informed decisions that can save you money. Whether you’re a young driver or have years of experience, taking these factors into account when choosing your car insurance company, coverage level, or even where you park your car, can contribute significantly to your financial well-being. Remember, the most important aspect of car insurance is not just the cost but ensuring that you have the liability insurance necessary to protect you, your loved ones, and your assets.

At Goldleaf Insurance, our brokers are here to get you the right amount of coverage at the best price.