People enjoy saving money. You do not? To save a little money on gas, we’ll travel across town. We also bundle our phone and TV service, use loyalty cards, and go through the weekly grocery fliers for the best discounts.
However, the majority of people in Canada don’t take any action to reduce their auto insurance costs. They forget to compare their options and let their policy renew automatically, losing out on potential savings.
Finding strategies to cut costs is more crucial than ever for drivers as insurance premiums climb. Need to reduce the cost of your auto insurance? Every motorist does! We have all the best money-saving advice to assist you in cutting expenses.
Saving is much simpler on auto insurance than you might think. These suggestions could help you save hundreds of dollars on auto insurance each and every year!
1) Bundle Insurance
You can save by having your home/ condo or renter insurance and all your automobiles insured with same insurance company. Savings can be up to 20 to 50% depending upon your unique situation.
2) Register for insurance based on usage
These telematics or usage-based insurance plans honour safe drivers. They keep track of things like abrupt braking, sudden acceleration, and the time of day you drive. Insurers offer upto 10% discount just for subscribing with usage based insurance policy. Renewal discounts can be up to 30%. It motivates you to drive safe as you monitor your driving habits. These programs are great for all good drivers but young drivers and new drivers can really benefit as it helps them build insurance history much quicker.
3) Increase Your Deductible
Costs and insurance deductibles are directly related. Your rate will go down if you increase your auto insurance deductible. Depending on how much you raise your deductible, the amount of your collision and comprehensive coverage can decrease by as much as 15% to 30%.
4) Drop Extra Coverage From Older Vehicles
You should assess whether the deductible you’ll pay in the case of a claim and what you pay are worthwhile given the declining value of an older vehicle.
As a general guideline, If your car is only worth $3,000, you should generally forego collision and comprehensive coverage.
5) Consider A Vehicle That Is Less Prone To Theft
Your premiums are affected by the car you drive, especially if it is frequently targeted by thieves. One of the elements used by insurers to determine your insurance price is how frequently your make and model of car is stolen.
6) Maximize your discounts based on your choices
Ask your brokers what discounts are offered by your insurance company
a) Low Mileage Discount
if your commute is less that means annual kms driven will be less as well. Insurers offer discount for low mileage.
b) Anti-theft Device Discount
Having an anti-theft device will make you eligible for an Anti-theft Device Discount and make your vehicle less of a target for thieves. Whether you have a high-tech alarm system that shuts down your fuel pump or starter motor, or a lower-tech visible “club-like” theft deterrent, you must qualify for a discount and you must check with your insurance broker.
c) Invest In Driver Training
Insurance is significantly more expensive for inexperienced and young drivers who don’t have a lot of driving time under their belts or a history of being covered by insurance. Young and novice drivers are eligible for additional discounts if they complete a drivers education course recognized by the Ontario Ministry of Transportation. It will help you learn how to become a safe driver and establish good driving habits.
d) Consider a vehicle that is insurance-friendly
Your costs are influenced by the kind of car you drive. Insurance for rarer and more expensive vehicles is more expensive. For instance, a luxury sports car or classic car will cost more than a sedan or an SUV. If you’re shopping for a new car, factoring in premium prices will help you make the right choice. Great safety ratings, a lower propensity for breakdowns, and a lack of typical targets for thieves are all characteristics of insurance-friendly vehicles. the least expensive vehicles to insure.
e) Keep Your Driving Record Clear
One of the best methods to reduce your prices is to have a clean driving record. You can anticipate higher prices at renewal time if you have any traffic infractions on your record or if you were the at-fault party in an accident. Drive safely by avoiding distractions, adhering to all traffic laws and signs, and staying at home if the roads are bad.
f) Opt on a green vehicle
Driving an electric or hybrid vehicle is beneficial for the environment and your budget. Get a discount of up to 10% if you drive electric or hybrid cars.
g) Multi Vehicle Discount
If you have more than vehicle at home or your spouse owns a vehicle, you can save up to 20% by bundling all of your vehicles under one policy.
h) Winter Tire Discount
Driving is safer while using winter tires. It gives drivers more traction, makes stopping in icy circumstances quicker and more effective, and gives you piece of mind. Use winter tires to receive up to 5% discount.
i) Drive a New Vehicle & Save
Did you know that driving a new automobile entitles you to a discount? You can save up to 10% when you buy a new car that is less than three years old. There might be some constraints.
j) Age Discount
Seniors, retirees, and experienced drivers over 50 with clean driving histories typically receive discounts from insurance companies.
k) Good Student Discount
Up to 10% in savings could be yours if you achieve good grades. To be eligible, you might need to submit a transcript or report card.
l) No Claims Discount
To minimize savings, it’s crucial to eep your record claims free. Before choosing to submit an automobile insurance claim, consider all of your alternatives by discussing with your broker.
m) Loyalty & Renewal Discount
Insurance companies value loyal clients. When customers renew with the same insurer year after year, they receive discounts. Even competing insurers offer discount if you have been with same insurer for 3 years or more.
7) Avoid Changing Insurers Mid-Term
If you wish to change insurance, aim to do it at the time of renewal. If you want to change before renewal, you will be charged a cancellation fee.
8) Students away at School
You can save up to 50% on your insurance while you have children who are away at school if they are included on your coverage.
9) Pay Your Premiums In Full
Paying your premium in full rather than paying monthly or quarterly will save you money. Insurers charge an administrative fee to process monthly payments. You will not pay this fee by paying in a lump sum.
10) Alumni Or Professional Associations
For their members or alumni, numerous professional organizations and post-secondary institutions provide discounted group rates. You may be eligible for a group pricing if you belong to a professional organization or are a recent graduate of a post-secondary institution.
11) Review Your Policy every year
Insurance contracts are valid for one year. In one year, a lot may happen. Every time it is up for renewal, you should review it to determine your needs, look for new savings, and modify your policy as necessary to save expenses.
12) Compare Quotations Annually
Comparing is one of the most crucial things you can do to save money on auto insurance and you must compare your auto insurance annually.
13) Always use an an independent Insurance broker for advice
Saving money on vehicle insurance rates in Ontario and across Canada is easy when you work with independent Insurance broker for advice . They are professionals in insurance who work for you and will provide you quotes from multiple insurance companies. I independent Insurance brokers may aid in choice comparison, ensure that your coverage is adequate, and offer professional guidance. Independent Insurance brokers represent you in negotiations with insurance companies.
Talk to your independent insurance broker about applying as many of these tips as possible to save more.