Doesn't everyone want to save money on everyday expenses? We’ll drive across town to save a few bucks on fuel, we bundle our phone & cable, we use loyalty cards but when it comes to car insurance most people don't do anything to save more.
And saving is much easier than you think. Here's are our Top 10 Tips with a bonus tip to help Ontario drivers save more on their car insurance. You save hundreds every year!
1 - Compare Car Insurance Quotes From Multiple Companies
Just like the well-known real estate mantra for home buyers and sellers is location, location, location, when it comes to saving on car insurance, one of the most important things you can do is compare, compare, compare.
Think about it, if you’re only getting one quote from a single company, what are the odds that it’s the lowest quote out there? Only by getting multiple quotes and comparing them can you know for sure.
2 - Bundle Your Car + Home Insurance
Many companies offer discounts for bundling the same way telecommunications companies will offer discounts if you bundle your home phone, mobile device, internet and cable. Be sure to ask your broker how much you can save if you bundle your car and home insurance. In many cases you could save up-to 15% by doing this.
3 - Sign Up For Usage Based Insurance
Insurance companies now have coverage that rewards good drivers with savings discounts. These are called Usage Based or Telematics insurance programs. They monitor driving habits such as quick acceleration, hard braking and the time of day you drive.
Typically you receive a 10% discount as soon as you sign up. And depending on your driving habits, you can save as much as 25% when it comes time to renew. These programs are great for all good drivers but young and new drivers can really benefit as it helps them build insurance history much quicker.
4 - Increase Your Deductible
Insurance deductibles and premiums are directly linked to each other. By raising your deductible – the amount you pay before your insurance pays the rest of a claim – your premium will decrease. Premiums can drop by as much as 15% to 30% on your collision and comprehensive insurance depending on how much you increase your deductible.
5 - Remove Collision And Comprehensive On Older Vehicles
With diminishing value of an aging vehicle, you’ll want to determine if the deductible you’ll pay in the event of a claim and what you pay for the coverage is worth it.
Consider this rule of thumb: if your car is worth less than $3,000, you probably want to drop the collision and comprehensive coverage.
6 - Install An Anti-theft Device
One of the reasons rates are higher in Ontario is because auto theft is more prevalent than in other provinces in Canada. So having an anti-theft device will help lower your rates.
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, ask what kind of discount on your premium you may be entitled to if you employ anti-theft measures.
7 - How Appealing Is Your Car To Thieves?
Choosing the right vehicle can have an effect on how much you pay for car insurance.
8 - Drive Less
If you only use your vehicle to drive, say, 5 km or less back and forth to work, you should be paying a lower premium than someone driving the same vehicle further for their daily commute.
Talk to your broker about how much you drive to see if there are any low mileage discounts available.
9 - Ask About Discounts
There are many types of discounts available to help drivers save on their car insurance. We have touched on some of the main ones in this but there are many others such discounts for :
New car purchases
Family members in the same household
Good student grades
Car insurance discounts vary from company to company so ask your insurance broker or company what discounts you're eligible for.
10 - Driver Training
Car insurance is much more expensive for new and young drivers who don't have any driving experience or insurance history. Taking an approved driver training course and will get young and new drivers additional savings.
11 - Bonus Tip - Keep A Clean Driving Record
Keeping a clean driving record is one of the best ways to keep your car insurance costs down. If you have traffic convictions or accident claims your rates will increase so it's best to avoid any of those issues.
We hope you found this article helpful.
Talk to your broker or insurance company about applying some or all of these tips and see how much you can save on your car insurance.