Buying insurance

5 factors that affect both home and auto insurance premiums

Explore the five key factors that influence both home and auto insurance premiums, helping you make informed decisions for cost-effective coverage.

There are multiple types of home and auto insurance, and a large variety of individual policies. But although there are different policies, some basic factors influence all types of auto or home insurance. If you’re wondering what affects car insurance rates or what affects home insurance rates, the five factors below cover the essentials you should know.

Factor 1: Where you live

The insurance industry is based on statistics. Your postal code provides a lot of information regarding potential risks to your house or car. And when you’re buying coverage, insurance companies factor those risks into your insurance quote. Where you live, statistically, affects how likely you are to experience a claims event.

How do they determine that risk? By examining details like whether there’s a high crime rate or high volume of traffic in your area. Are you in a flood-prone zone, or is your home/automobile subjected regularly to severe weather events? If so, you’ll likely pay more to insure your home or car than people who live in areas without these factors. You may even have to consider adding insurance riders or supplemental insurance to your policy to help cover these additional risks.

Factor 2: The age/condition of your home or vehicle

Usually, the older a home is, the more expensive it is to insure. Why? With age generally comes deterioration. Weaker, older materials are less apt to stand up to severe weather and more likely to require repair or replacing. So, the insurance company prices your premium to help cover these risks.

It’s a bit different with auto insurance. Unlike homes, most older cars are cheaper to insure. That’s because they tend to have a low replacement value. Newer cars are more expensive than older cars; newer cars usually cost more to repair or replace if they are in an accident. That’s why insurance premiums will usually be higher on a newer car than an older car.

So, insurance companies need to know the make, model and year of your car. Its condition matters, too. Auto insurers also want to know how much driving you do in a year. More mileage increases your chance of a collision, and therefore the risk of making a claim. Drivers often ask, does mileage affect car insurance? In general, higher annual driving does the potential risk, which is why usage and commuting patterns matter.

Factor 3: Your deductible

A deductible is the portion of the claim amount that you have to pay when you have a claim. The remainder of the claim amount is paid by your insurance company.

When choosing your deductible amount, it’s important to think about your financial situation. Consider how much you could afford to pay if something were to happen, and you need to make a claim.

Tip: You can choose a lower deductible so you pay less in the event of a covered claim, but you may have to pay a higher premium. Or you can choose a higher deductible to help lower the cost of your car insurance.

Factor 4: Previous insurance claims

Most people buy insurance hoping they never have to use it. If you do make a home or auto claim, it’s likely your premiums will increase. Some companies offer Accident Forgiveness or Claims Protection, but you usually have to pay for this added coverage and meet eligibility criteria.

If you make a claim, your insurance company will consider you a higher risk for potentially making another claim in the future and may raise your rates.

Factor 5: Bundling your home and auto insurance with one company may help you save

Insurance companies value your business. Buying your home and auto insurance with one company should get you a discount. This kind of bundling home and auto insurance discount is common and can meaningfully lower your premium.

When PC Optimum™ members buy their home and auto insurance together from PC® Insurance, they can save up to 890^† in combination with other available discounts. Get an online quote today.

General information is provided for your reference and interest only. The above content is intended only to provide a summary and general overview on matters of interest and is not a substitute for and should not be construed as the advice of an experienced professional. PC® Insurance does not guarantee the currency, accuracy, applicability or completeness of this content.
If you purchase a product, the terms and conditions of your insurance coverage will be outlined in your insurance policy, which will prevail. Certain conditions, limitations, and exclusions apply. Savings are not guaranteed and vary based on your profile, place of residence, and, where applicable, year, make and model of your vehicle. Rates, discounts, and eligibility rules are subject to change without notice. Please speak to a PC^® Insurance Advisor to learn more.

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Important Information on Products, Discounts, and Services by PC Financial Insurance Agency Inc.

Not everyone who uses online platforms or calls in will be able to get a quote or buy an insurance policy. This page provides, for information purposes only, a summary of our different insurance products and discounts that may be available to you. If you purchase a product, the terms and conditions of your insurance coverage will be outlined in your insurance policy, which will prevail. Certain conditions, limitations, and exclusions apply. Savings are not guaranteed and vary based on your profile, place of residence, and, where applicable, year, make and model of your vehicles. Rates, discounts, and eligibility rules are subject to change without notice. Please speak to a PC^® Insurance advisor to learn more.

*All purchases with the PC Financial^{^®} Mastercard^{^®} earn a minimum of 10 PC Optimum™ points per dollar and all purchases with the PC Money™ Account earn a minimum of 5 PC Optimum™ points per dollar. When you pay your PC^{^®} Insurance home or auto insurance premium with your PC Financial^{^®} card, earn double the regular PC Optimum™ points per dollar (20 points per dollar for PC Financial^{^®} Mastercard^{^®} and 10 points per dollar for PC Money™ Account). PC Optimum™ points are awarded exclusively by President’s Choice Services Inc. This is not an offer provided by any other entity. PC Money™ Account points offer is available only with Aviva General Insurance Company policies entered into after January 20, 2025. Minimum redemption is 10,000 PC Optimum™ points (worth $10 in free rewards) and in increments of 10,000 PC Optimum™ points thereafter, at participating stores. You can redeem the PC Optimum™ points you earn for eligible purchases, or for any other purposes of which we may advise you from time to time. Some redemption restrictions apply; visit pcoptimum.ca for details and full store list.

^†Details on Potential Savings

Save up to $890 on PC^® Home and Auto Insurance
PC Optimum™ members could have a combined savings of up to $890 on their homeowner’s and car insurance policies if they are eligible for the following discounts: Combined Policy Discounts by purchasing home and auto insurance together, Claims Free Discount for homeowners, Conviction Free Discount, and Affinity Discount for PC Optimum™ members. Customers may be eligible for other discounts on their car or home insurance such as the Electric Vehicle Discount, Hybrid Vehicle Discount, Winter Tire Discount, Mortgage Free Discount and Multi Product Discount. Savings are based on rates in force as of July 2025. Savings are calculated by determining the average base premium PC^® Insurance customers with one car insurance policy and one homeowner insurance policy would have paid if they were not eligible for the discounts. Discounts may not apply to all coverages and endorsements. PC Optimum™ members must be in good standing to be eligible for the Affinity Discount. Certain conditions, limitations, and exclusions apply. Condominium and tenant insurance policies are excluded from this savings calculation. For detailed information about how savings could apply to you, including saving opportunities for condominium owners and tenants, speak with a PC^® Insurance advisor.

Save up to $1,000 on PC^® Home and Auto Insurance in Toronto
PC Optimum™ members in Toronto could have a combined savings of up to $1,000 on their homeowner’s and car insurance policies if they are eligible for the following discounts: Combined Policy Discounts by purchasing home and auto insurance together, Claims Free Discount for homeowners, Conviction Free Discount, and Affinity Discount for PC Optimum™ members. Customers may be eligible for other discounts on their car or home insurance such as the Electric Vehicle Discount, Hybrid Vehicle Discount, Winter Tire Discount, Mortgage Free Discount and Multi Product Discount. Savings are based on rates in force as of July 2025. Savings are calculated by determining the average base premium PC^® Insurance customers with one car insurance policy and one homeowner insurance policy would have paid if they were not eligible for the discounts. Discounts may not apply to all coverages and endorsements. PC Optimum™ members must be in good standing to be eligible for the Affinity Discount. Certain conditions, limitations, and exclusions apply. Condominium and tenant insurance policies are excluded from this savings calculation. For detailed information about how savings could apply to you, including saving opportunities for condominium owners and tenants, speak with a PC^® Insurance advisor.

Save up to $150 on PC^® Homeowner’s Insurance in British Columbia, Saskatchewan and Manitoba
PC Optimum™ members could save up to $150 on their primary homeowner’s insurance policy if they are eligible for the following discounts: Claims Free Discount for homeowners and Affinity Discount for PC Optimum™ members. In British Columbia, savings for being claims-free have already been factored into the premium rating calculations for homeowner’s policies. Customers may be eligible for other discounts on their homeowner’s insurance such as the Mortgage Free Discount and Multi Product Discount. Savings are based on rates in force as of July 2025. Savings are calculated by determining the average base premium PC^® Insurance customers with a homeowner insurance policy would have paid if they were not eligible for the discounts. Discounts may not apply to all coverages and endorsements. PC Optimum™ members must be in good standing to be eligible for the Affinity Discount. Certain conditions, limitations, and exclusions apply. Condominium and tenant insurance policies are excluded from this savings calculation. For detailed information about how savings could apply to you, including saving opportunities for condominium owners and tenants, speak with a PC^® Insurance advisor.

Save up to 35% on PC^® Home and Auto Insurance
PC Optimum™ members could save up to 35% on their homeowner’s, condominium, or tenant insurance policy if they are eligible for the following discounts: Claims Free Discount, Combined Policy Discount by purchasing home and auto insurance together, and Affinity Discount for PC Optimum™ members. PC Optimum™ members may also save up to 35% on their car insurance policies if they are eligible for the following discounts: Conviction Free Discount, Combined Policy Discount by purchasing auto and home insurance together, and Affinity Discount for PC Optimum™ members. Customers may be eligible for other discounts on their car or home insurance such as the Electric Vehicle Discount, Hybrid Vehicle Discount, Winter Tire Discount, Mortgage Free Discount and Multi Product Discount. Total available discounts are in comparison to the base premium PC^® Insurance customers would have paid if they were not eligible for the discounts. Discounts may not apply to all coverages and endorsements. PC Optimum™ members must be in good standing to be eligible for the Affinity Discount. Certain conditions, limitations, and exclusions apply. For further information, see More Information Section below.

Affinity Discount for PC Optimum™ Members
PC Optimum™ members in good standing could benefit from an Affinity Discount on their homeowner’s, condominium, and tenant insurance in all provinces and territories, except Quebec where PC^® Insurance is not available. Additionally, an Affinity Discount could apply on car insurance for PC Optimum™ members in the following provinces and territories: Alberta, Ontario, Nova Scotia, Prince Edward Island, Yukon, Northwest Territories, and Nunavut.

Save up to 25% on PC^® Motorcycle Insurance
You could save up to 25% on your motorcycle insurance when combining the following discounts: Loyalty, Conviction Free, Motorcycle and Car, Motorcycle and Property, and Multi-Motorcycle. Discounts may not apply to all coverages and endorsements. Due to provincial legislation, PC^® Insurance motorcycle products are not offered in British Columbia, Manitoba, and Saskatchewan. Savings are not guaranteed and vary based on your profile and place of residence. Rates, discounts, and eligibility rules are subject to change without notice. If you purchase a product, the terms and conditions of your insurance coverage will be outlined in your insurance policy, which will prevail. Certain conditions, limitations, and exclusions apply.

More Information Section

British Columbia
You can save up to 5% on your homeowner’s, condominium, or tenant insurance policy if you are eligible for the Affinity Discount for PC Optimum™ members. In British Columbia, savings for being claims-free have already been factored into the premium rating calculations for homeowner’s, condominium, and tenant insurance policies.

Alberta
You can save up to 30% on car insurance if you are eligible for the following discounts: Conviction Free Discount, Combined Policy Discount, and Affinity Discount for PC Optimum™ members. You could also save up to 20% on your homeowner’s, condominium, or tenant insurance policy if you are eligible for the following discounts: Claims Free Discount, Combined Policy Discount, and Affinity Discount for PC Optimum™ members.

Saskatchewan
You can save up to 20% on your homeowner’s, condominium, or tenant insurance policy if you are eligible for the Claims Free Discount and Affinity Discount for PC Optimum™ members.

Manitoba
You can save up to 20% on your homeowner’s, condominium, or tenant insurance policy if you are eligible for the Claims Free Discount and Affinity Discount for PC Optimum™ members.

Ontario
You can save up to 30% on car insurance if you are eligible for the following discounts: Conviction Free Discount, Combined Policy Discount, and Affinity Discount for PC Optimum™ members. You could also save up to 25% on your homeowner’s, condominium, or tenant insurance policy if you are eligible for the following discounts: Claims Free Discount, Combined Policy Discount, and Affinity Discount for PC Optimum™ members.

New Brunswick
You can save up to 35% on car insurance if you are eligible for the following discounts: Conviction Free Discount and Combined Policy Discount. You could also save up to 40% on your homeowner’s, condominium, or tenant insurance policy if you are eligible for the following discounts: Claims Free Discount, Combined Policy Discount, and Affinity Discount for PC Optimum™ members.

Nova Scotia
You can save up to 40% on car insurance if you are eligible for the following discounts: Conviction Free Discount, Combined Policy Discount, and Affinity Discount for PC Optimum™ members. You could also save up to 40% on your homeowner’s, condominium, or tenant insurance policy if you are eligible for the following discounts: Claims Free Discount, Combined Policy Discount, and Affinity Discount for PC Optimum™ members.

Prince Edward Island
You can save up to 35% on car insurance if you are eligible for the following discounts: Conviction Free Discount, Combined Policy Discount, and Affinity Discount for PC Optimum™ members. You could also save up to 40% on your homeowner’s, condominium, or tenant insurance policy if you are eligible for the following discounts: Claims Free Discount, Combined Policy Discount, and Affinity Discount for PC Optimum™ members.

Newfoundland and Labrador
You can save up to 30% on car insurance if you are eligible for the following discounts: Conviction Free Discount and Combined Policy Discount. You could also save up to 35% on your homeowner’s, condominium, or tenant insurance policy if you are eligible for the following discounts: Claims Free Discount, Combined Policy Discount, and Affinity Discount for PC Optimum™ members.

Northwest Territories, Yukon, and Nunavut
You can save up to 15% on car insurance if you are eligible for the Combined Policy Discount and Affinity Discount for PC Optimum™ members. You could also save up to 35% on your homeowner’s, condominium, or tenant insurance policy if you are eligible for the following discounts: Claims Free Discount, Combined Policy Discount, and Affinity Discount for PC Optimum™ members.