Car Insurance Rate - Car Insurance Price

Car Insurance Rate & Car Insurance Price Information

Insurance is one of those industries jam packed with jargon and definitions that can seem to vary somewhat between one insurance company and the next. Car insurance price, car insurance rate, car insurance premium, deductible, not-at-fault, liability, coverage, group coverage, etc. etc. Generally, the best way to find out what these terms really mean is to use an Insurance Dictionary or Insurance Glossary.

Before getting into a discussion about the terms - "car insurance price" and " car insurance rate," if you're simply here to find out how to get the best deal on your auto insurance, the simple answer is to click on this link: www.kanetix.ca/auto-insurance. Otherwise, let's take a look at what the words "price" and "rate" mean in the insurance world. Note that "car insurance price" and "car insurance rate" may not appear in some insurance dictionaries or glossaries because these terms seem fairly simple or obvious. But perhaps it's not as obvious as some may think.

The Insurance Industry On "Car Insurance Rate" and "Car Insurance Price"

Most insurance companies seem to agree on the same definitions for terms like price and rate. However, some companies also add their own "flavour" to such insurance jargon, to reflect their company's take on a particular term. An insurance term can also be different than the usual dictionary definition because of the way in which a particular company may calculate or consider certain factors which are related to the term.

For example, the term "not-at-fault". The Highway Traffic Act or the Criminal Code of Canada has a set of regulations called "fault determination rules," which give guidelines for a variety of situations as to who is at fault or not at fault.

While you may be found not-at-fault according to these rules, and even the police, your insurance company may disagree and claim that in fact, you were at fault. This could cause an increase in your insurance rate.

This is one example that shows why it can get pretty tricky to keep all the insurance jargon straight!

Rates and Prices and Premiums, Oh My!

Terms like "price" or "rate" seem rather simple. Actually, it would be pretty difficult to fully alter the meanings of the words because they are used outside of insurance in many other sectors, industries, and in daily conversation. But the problem is that price and rate can easily be conflated and confused.

You'll often hear phrases like these when you're shopping for auto insurance:

• Best car insurance price
• Get the best car insurance rate here
• Paying too much for your car insurance premiums?
• Find out how you can get the best premium and rate for your car insurance.
• Everything you need to get a car insurance rate, price, and premium.
• Car insurance prices too high? Find out more here.
• Are you satisfied with your cost of car insurance?

As you can see, price, rate, cost, and premium are often used. That is, they are used interchangeably and synonymously from one phrase to the next, within and between different companies. But the fact is that price, rate, premium, and cost are not synonymous with each other, although their meanings are very similar.

Let's straighten things out.

Car Insurance Rate is the payment required from a policy holder to the insurance provider based on a calculation; or a quantity (or amount) considered in relation to some other unit. The calculation or the other unit which payments are based on for an auto insurance rate is: the degree of risk that you pose to that company. That is, how likely someone of your profile, is likely to make a claim and thus cost the insurance company money. So when insurance providers talk about "insurance rate" - they typically mean how much of a risk you pose. This will change depending on a variety of factors, including: driving history, gender/age, type of vehicle, use of vehicle, urban or rural area of residency, etc.

Car Insurance Price is the sum or amount of money that one pays for auto insurance coverage.

Admittedly, both of these are similar to Car Insurance Premium, which is defined as the periodic (monthly, quarterly, annual) payment (cost or price) required to be given by the policy holder in order to have coverage under a contract. If premiums are not paid, then coverage is not supplied.

What does this all mean? It means that your car insurance rate is: the price that you pay (the cost or payment due) to obtain your auto insurance coverage, which is based on the calculated risk that you may be to the insurance company. Premium seems to be a more technical and formal term of rate, and is used between insurance providers and their already-contracted-customers, to discuss periodic payments made or to be made under a contract, in exchange for insurance coverage.

For the best car insurance rate and car insurance price, look no further!

With all that said and done, what you probably want to know is: how do you find a price or a rate for your auto insurance coverage?

In our opinion, the best place to look is at: www.kanetix.ca/auto-insurance where you can input your driving history and with a few clicks, our Quote Maker will generate quotes for you from many of the top competing insurance companies in Canada. Comparing quotes from various companies is the best way to get insurance because it shows you what rate and price you will be charged by each company, and for what kind of coverage.

Check your car insurance rate and price today! Visit www.kanetix.ca/auto-insurance. You could be in for a most pleasant surprise.