I’ll be the first to admit that I have a potentially unhealthy love for my car.  I love her colour (warm and yellow like the sun) the way she moves (peppy as all get out) and the fact that I can get from point A to point B with a minimum amount of stress.  Provided I’m not driving on Dufferin.  Then all bets are off.

So of course, because I love her so much, I want to make sure she is protected.  I wash her and wax her, take her in for monthly check ups and get her insured.

To be honest with you however, I’ve never really been sure about my car insurance.  What factors are involved in determining my rates?  How is there enough money to cover all the claims made? And why can’t I get my shoes insured at the same time (okay, that’s not a real question…I’ve already got that covered). Do not mess with my Manolos)

To answer all my questions, I once again turned to my friends in insurance, Insurance Bureau of Canada. They really do have all the answers to anything you might want to know about insurance. And because I figured if I’m asking these questions…I bet a bunch of other people are as well.

It turns out, the payments (or premiums) of the many cover off on the pay out for the losses of the few.  The money that I pay goes into a large pool through my insurance company, and that money is paid out to provide relief to the few who make claims and need that money. There is always enough to pay off claims because there are more people paying insurance than there are making claims at any one time. Which is good to know.

I also looked into ways to decrease the amount of insurance I pay.  I’ve always wondered if I pay more because my car is yellow. Turns out, I don’t.  But there are lots of other things taken into consideration when calculating my insurance premiums.  Like where I live (collisions and auto theft are more prevalent in urban areas, so that could affect the premium), the kind of car I drive (not colour), what I use my car for and my driving record and so much more.

Wow.

While I was delving into the world of insurance, I decided to see if there were ways I could decrease my premiums (I have mentioned the shoes right).  And there are plenty of options for saving some money while protecting my baby.  I can get a package deal for insuring my car and my home with some insurance companies, and by installing an approved theft deterrent system, I can decrease my rates…and make my car less appealing to thieves.

The way I look at it…my car keeps me safe…I should do what I can to keep her safe as well.,

Although this post has been generously sponsored by IBC, the opinions and language are all my own and in no way do they reflect Insurance Bureau of Canada.