Tools & Resources
9 Ways to Save Money on Your Auto Insurance
The more you know about how insurance works, the more you'll be able to save off your premiums. Follow these simple tips and you'll not only become a more informed consumer, but you'll have everything you need to know to maximize your savings.
- Make sure all your cars are on the same policy
- Drive carefully
- Insure both your car and home with the same company
- Have an anti-theft device installed in your car
- Increase your deductibles
- Drive a "low-risk" car
- Do you have an older car? You might want to review your collision coverage
- Don't drive to work
- New driver? Take a driver's training course
- Make sure all your cars are on the same policy
Most insurance companies offer a "Multi-vehicle discount" for customers who insure more than one car on the same policy. This can bring you savings off both cars.
- Drive carefully
Your driving record is one of the most influential factors in determining your insurance rate. Tickets affect your insurance rates for up to three years and accidents stay on your record for at least six! With a bad driving record, you can find yourself paying a lot of extra premium over the years.
- Insure both your car and home with the same company
Insurance companies offer this savings as an incentive to get your property insurance business too. This will qualify you for a discount called the "Multi-line discount". It's a great way to get another discount off your premiums.
- Have an anti-theft device installed in your car
Most insurance companies recognize that your car is less likely to be stolen if you have an anti-theft device installed in your vehicle and offer an "Alarm or anti-theft discount" . If you already have an approved, factory-installed alarm in your car, they will take this into account when determining your rate.
- Increase your deductibles
The higher your deductibles, the lower your insurance premiums. Insurance was really meant to cover you for damages you could never afford on your own. If you can afford a $1,000 repair job, then raise your deductibles to $1,000 and pay less for your insurance.
- Drive a "low-risk" car
Insurance rates for cars are based on the previous claims history for that vehicle. The more likely a car is to be stolen or in an accident, the more you pay for insurance. If you are buying a new car, check with the Vehicle Information Centre of Canada or compare quotes to see how your dream-car rates. This may influence your purchase.
- Do you have an older car? You might want review your collision coverage
If your car is getting up there in age, you may want to think about dropping the collision coverage on your policy. You need to think about this one though - it's not always a clear-cut decision. You need to weigh the cost of the collision coverage with the value of your car and your chosen deductibles.
- Don't drive to work
The more you drive on the road, the more you increase your chances of getting in an accident. Insurance rates are higher for people who commute to work. Taking public transportation or sharing a ride will not only help you save on parking and gas, but will help lower your insurance premiums.
- New driver? Take a driver's training course
Licenced drivers who have completed an approved drivers training course in the last 3 years will pay lower insurance premiums. Remember, safer drivers pay lower insurance rates.
|
|
