Tired of expensive car insurance? Make sure you are getting the best price for your coverage with these tips...
Bundle your policies
Raise your deductible
Shop around and compare qutoes
Lower your coverage
Find another way to get around
Choose a car that insurance companies like
Secure your car
Special group rates
With the cold season basically upon us you might want to consider switching to winter tires. They offer you better traction and reduced braking distances during Canada’s frosty months. Having a set installed on your vehicle for the winter can also net you a discount on your car insurance with some providers. Not all insurers offer such a discount, so check with your provider to see if they do. And even if they don’t, winter tires are still a good idea. The better traction they offer in winter conditions makes it less likely for you to be involved in a fender-bender and ultimately less likely to file a claim and have your insurance premiums rise as a result. Just don’t forget to change back to all-weather or summer tires when the temperature goes back up.
This might sound obvious, but safer drivers get better rates. The fewer accidents, traffic violations, and claims on your record, the better the rates you will be offered on your car insurance. If you don’t feel your driving is up to par, consider taking a refresher course in driver’s safety.
Most insurance companies offer discounts for bundling. If you already have home, boat, or other vehicle insurance policies, you can save money by bundling your car insurance together with the same company. In general, the more you bundle, the more you can save.
Raising your deductible can lower the cost of your premium and save you money overall. However, you need to make sure that you do not raise your deductible beyond what your budget could handle in the event of a claim. When raising your deductible, you might want to consider setting aside the amount of your deductible in a separate savings account in case you need it.
Do not simply go with the insurance company everyone else in your family uses. Different insurance providers use different formulas to determine your rates and, as a result, the premium you are quoted can vary substantially. You should also not assume that just because one provider was the least expensive for a previous car that they will be again for your next vehicle. It is generally a good idea to use an insurance broker or search online to get quotes on your insurables. Brokers work with a variety of different insurance companies and can save you time and effort by using their knowledge of the industry to recommend the right coverage for your needs, at a good rate.
You can reduce your insurance premiums by lowering your overall coverage amounts, but you need to be careful with this as it will affect your potential reimbursement or payout in the event of a claim. Additionally, a large reduction in coverage will sometimes yield only a small savings on premiums. Only lower your coverage after careful consideration and never lower below required minimums.
When determining your premium, one factor insurance companies will look at is the actual number of kilometres you drive your car every year. Driving more means an increased risk of accidents and required claims, which subsequently means a higher cost to you for your premium. Walking, taking public transit or carpooling will reduce mileage on your car and save you money on your insurance.
Generally, this means buying a vehicle that rates well for safety and does not show up in many insurance claims. Choosing a vehicle with the highest possible safety rating will reduce the cost to insure the car and can also provide additional peace of mind. Consider checking out the insurance board of Canada’s How Cars Measure Up to see claims statistics on the most popular vehicles.
One of the things insurers take into consideration when setting your rates is how often the model of car you drive is stolen. If your vehicle does not come factory equipped with an alarm or other form of security system to deter theft, you may want to consider investing in one. Some insurance providers offer a discount for approved after-market anti-theft devices installed on your vehicle, so check with your provider to see whether they offer one, and if so, what types of devices qualify. You should also consider where you park your vehicle. Perking your car in a garage overnight will likely result in a lower premium than leaving it on the street.
Some companies, professional groups or alumni associations will offer their employees or members a discount with a particular insurer. Check with your employer or association to see if they have negotiated a special group rate that you may qualify for.