Who doesn’t want cheaper car insurance? Whether you’re a new or experienced driver, looking for a new car or driving an old clunker, here are 10 ways you can save on your auto insurance rates.
1. Increase your deductible
the higher your deductible (the share of a claim you pay), the lower your premiums
2. Eliminate collision and/or comprehensive insurance coverage
if your car is older, consider eliminating the collision and/or the comprehensive coverage
if you don’t have collision insurance and you have an accident, you’re responsible for any costs to repair or replace your car, unless someone else is as at fault
if you don’t have comprehensive insurance coverage you’ll have to pay for the repairs if your car is damaged by hail, has a cracked windshield, etc.
3. Buy a car with a lower-cost insurance rating
insurance companies keep track of which cars are most often stolen, and most frequently in accidents, and those cars can cost more to insure
when shopping for a new or used car, check out Insurance Bureau of Canada’s report "How Cars Measure Up".
4. Build a clean driving record
a consistent accident and conviction-free driving record will help your premiums too
even if you currently have a bad driving record, consider today the first day of building a clean driving record
5. Reduce how much you drive
Insurance companies charge higher premiums to drivers who drive further in a year
For longer trips, buying an air, train or bus ticket may be cheaper in the long run than the extra mileage
Walking when possible is good for the fuel budget, the waistline, and the environment, and it keeps your annual mileage lower
6. Remove new or high-risk drivers from your policy
if you have a new driver or a high-risk driver on your policy, it may be better to have them insured separately
if it’s practical, new or high-risk drivers should drive and be insured on the older or less valuable household car
7. Make sure your driving record is up to date
make sure you let your insurance broker know when you have graduated from a G1 to a G2 license, or from a G2 to a G under Ontario’s graduated licensing system
double-check the Vehicle Insurance Number (VIN) that appears on your insurance records versus the VIN in your car
if the numbers don’t match, you could be paying insurance on a more expensive make or model
8. Ask your insurance broker about discounts
if you’re over age 65, insure an occasional driver who is a full-time student far from home, have an approved anti-theft system, or drive a hybrid or electric vehicle, you could qualify for insurance discounts
also ask about a discount for insuring more than one car, or your car(s) and home with the same company
9. Invest in good driver training
professional driving courses can mean lower insurance rates; ask your broker before you choose your driver training company, or if you have just graduated from driver training
10. Pay bills, including your premiums, on time
your credit score and any lapses in coverage count, so make sure you pay all of your bills on time
very good article!
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