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HOME : Just the FAQs Ma'amCheaper Auto Insurance Rates In The CountryMy husband and I are thinking of moving from the city to the country. It would mean a longer commute to our jobs, but we want to weigh all the pros and cons - including the cost of insurance - before making a final decision. Would we pay about the same for our insurance as we do in the city? That all depends. Before you make the transition from city slicker to country bumpkin, here are a few points to consider. First, let's look at your car insurance. Insurance companies divide the province into "rating territories." The premium each company decides to charge will vary according to the rating territory in which you live (although many of these territories are similar). Generally speaking, however, your overall premium would be lower in a rural area, because there is less traffic to contend with than in an urban environment. Less traffic means less chance of being involved in an accident, and that translates into lower premiums. If, on the other hand, you end up driving more than 18 kilometres one way to work, you will pay more for your insurance than someone who drives a shorter distance each day. (Of course, the insurance company will also take into account your driving record in calculating your car insurance premiums.) As for home insurance, the most important factor in determining the cost is usually the standard of public fire protection that is available. Consider the following when shopping for your country home: Is there good water pressure in the public water supply? Is there a hydrant within 300 metres (approximately 1,000 feet)? If not, is the house within eight kilometres (five miles) - by a road that is kept open year round - of a fire hall? If you have a fire hydrant within 300 metres of your house (as is likely the case in the city), you would pay the least for your insurance; if you don't even have a fire hall within eight kilometres, your house would be called an "unprotected risk," and you would pay the most for your insurance. On the other hand, while you likely have better fire protection in the city, you may also have a greater exposure to burglary. That may help lower your rate in the country. Insurers also take other "risk factors" into account when pricing your home insurance, like the style and construction of the house, and whether it is occupied by the owner or by tenants. And remember, prices may vary from one insurer to the next, depending on how each views these risk factors. Finally, when comparing prices, make sure you are comparing apples to apples - not all homeowner policies are alike. |
