If you’re insuring more than one vehicle, it’s always a good idea to insure all your vehicles with the same insurance provider. Insurance companies offer a discount for customers insuring multiple vehicles, which will save you a percentage on each policy.
Save money on Auto insurance
Save money on Auto insurance
3. Compound Your Savings
If you require additional insurance, including homeowner’s, tenant or condo insurance, find out what discount your insurance provider offers to insure your vehicles along with your other policies. Most insurance companies offer discounts when you buy both your home and auto insurance policies with them, which could save you 5-10% off your total insurance cost.
4. Higher Deductibles
As a general rule, the higher your deductible is, the lower your insurance premiums will be. As long as you can afford to have a higher out-of-pocket cost if something happens to your car, choose a $1,000 deductible instead of $500 deductible to save.
5. Cancel Collision Coverage
Collision coverage is typically a significant portion of your insurance premium, and if you’re driving an older car collision coverage may not be necessary. The value of your vehicle can be drastically reduced if it is older, has higher mileage or if it’s in bad shape. If the value of your car is worth the same or less than your deductible, you’re likely better off cancelling your collision coverage and putting the premium savings away to go towards purchasing another vehicle.
6. Drive Better
Your insurance premiums are affected by your driving record, so it pays to keep it clean. Tickets and convictions have a negative effect on your insurance rates for up to three years, and accidents can affect your rates for much longer (6 years or more!). Drive safe every day to keep your insurance rates low.
7. Choose Your Vehicle Wisely
The type of car you drive influences your rates, depending on the average cost of claims for that make and model. For example, four wheel drive vehicles often cost more to insure than their two wheel drive counterparts, as mechanical repair costs in the case of a collision on four wheel drive vehicles are generally more complex (and therefore more expensive). Your insurance company will also look at how often a vehicle is stolen. Before purchasing a new (or newer) vehicle, it is wise to check in with the Vehicle Information Centre of Canada, which can show you the difference in theft and claim rates for different vehicles. By choosing a lower risk car you can reduce your annual insurance premiums.
8. Take Transit or Carpool
In your insurance company’s eyes the more you drive, the more likely you are to get in an accident. And driving during rush hour (which is when most people commute to work) can be even worse. This is why insurance rates are higher if you drive your vehicle to work. Go green and take the bus, train, or join a carpool group to save money on your insurance, and the other costs associated with driving your car to work.
9. Get Educated
If you are a new driver, completing an accredited driver’s education course will result in significantly lower premiums for your car insurance in Canada. Though the course will cost you initially, you’ll be safer on the road, and you’ll save on your insurance premiums every year.
10. Install an Anti-Theft Device
Your car is at a lower risk of being stolen when you have an anti-theft device. Though most cars today come with a factory installed alarm system, and your insurance provider will have already discounted your policy to compensate for that, additional security measures may qualify you for an additional discount. Check with your insurance company and see if having an alarm or immobilizer installed in your vehicle can further reduce your rates.