How are the rates I pay for collision and comprehensive insurance determined?
-Most insurance companies now use what they call CLEAR rating. Under the CLEAR(Canadian Loss Experience Automobile Rating) system, devised by the Vehicle Information Center of Canada(VICC),rates are based, not on price, but on the experience and risk associated with the make and model of each vehicle. Separate rate groups are assigned for accident benefits, collision and comprehensive /specified perils. VICC takes several factors into account when coming up with a rate group: claims and vehicle characteristics, such as weight to horsepower ratio, wheelbase, body style, price, etc. Each year, VICC reviews the rate groups, factoring in new claims data, and adjusts rate groups accordingly. Also, statistics have shown that some vehicles are more susceptible to theft than others.
