You can easily save yourself some extra cash by avoiding these common car insurance pitfalls
You have too much coverage
You are too loyal
You switched providers too soon
Your deductible is too low
You drive too fast
You drive too aggressively
You have too many providers
You miss payments
Your car is a target for thieves
You drive too much
If you drive an older car that is not worth very much, you should not be carrying a lot of insurance on it. While you still need to have the mandatory minimum amount required by law, if your car is worth less than $1,000 you probably don’t need much more than that.
Loyalty, while an admirable quality, is not always the best policy when it comes to car insurance. If you have been with the same company forever, or simply chose your insurance provider based on who your parents used, you may not be getting the best deal. While some insurance providers offer loyalty discounts, a different provider may still be a better fit depending on your individual situation. It is a good idea to speak with an insurance broker who understands your needs to ensure you are with the right provider.
Even if you find a better rate from a different provider, you generally do not want to switch providers mid-year. If you do, you may be hit with early cancellation penalties that could outweigh any potential savings offered by a new provider for that first year. Stay the course and wait until your current contract is up before switching insurers, this way you’ll avoid those cancellation fees.
A lower deductible will mean that you pay a higher premium on your insurance. By increasing your deductible (the amount you have to pay in the event of a claim before your insurance coverage kicks in) you can lower your overall costs. Just be sure you don’t raise your deductible to a level you cannot afford if you are in an accident.
Those speeding tickets add up. Even if you’ve never been in an accident, other smaller traffic violations like speeding will have a negative impact on your insurance rates. One minor speeding ticket (travelling less than 30km/hr above the speed limit) likely won’t have a big impact on your rates, but multiple tickets or any citations for a larger offence such as dangerous driving will.
Statistics show that things like speeding, tailgating, running red lights and other aggressive driving behaviours substantially increase your risk of being in an accident. In addition to the safety concerns, accidents that are your fault are a surefire way to cause a spike in your premiums. Slow down, relax and everyone will be better off for it.
Okay, so you went online and found the best deal for car insurance, the best deal for home insurance, the best deal for pet insurance and the best deal for life insurance. But that does not mean you’re getting the best deal overall. If you have multiple providers for the different types of insurance you have, you are missing out on bundling savings. Combine all of your insurance together and then shop around for the best rate on the total package, not just the individual pieces.
If you don’t pay your premiums, under certain circumstances, it can lead to the cancellation of your insurance. This will make you a more uncertain risk for other insurance providers and you will have to pay more because of it. If you have trouble remembering to pay your bills on time, see if you can set up your payments to be made automatically so you don’t have to worry.
If you purchase a car that is known to be a target for thieves, you should expect to pay more for your insurance. Even if your car isn’t a prime target there are steps you should take to keep your car safe like never leaving your keys in the car and hiding your valuables to lower the risk of a break-in.
Seems pretty obvious, the more you drive, the more you need to pay on insurance. Rather than driving to work all the time, why not hop on the bus, a streetcar or subway train. Many insurers offer a low-mileage discount that can save you money.