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Auto insurance terms explained

CLEAR rating

For explanations of policy coverages please go to our What is covered by auto insurance section

Insurance policy terms and conditions are as stated in the actual insurance policy wordings. Nothing stated herein is intended to modify any part of an insurance policy. If you have a specific question of significance to your situation contact your insurance advisor.


Vehicle Information Centre of Canada was established in 1989 to provide analysis of Canadian insurance claims by individual vehicle models. The Vehicle Information Center is no longer a separate organization and is now part of the Insurance Bureau of Canada (IBC). The CLEAR rating programme is the industry's effort to introduce a more scientific approach to rating autos for insurance purposes. Previously, insurers relied on the manufacturer's suggested price to rate a auto for potential claims costs. The problem was that the sticker price was no indication of how often that auto is likely to be involved in a claim or the cost to repair the auto.

As a result of the work done by the VICC, insurers now use the cost of claims relative to such factors as wheelbase, bodystyle, weight to horsepower ratio, price and the theft record of individual models. The system is called the CLEAR system which stands for Canadian Loss Experience Automobile Rating.

Because of this system you should not assume that a lower priced auto will be less expensive to insure.


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