Think you can save a lot on Black Friday? Save even more just by shopping around for your car insurance.
Long gone are the days when you would have to cross-border shop to benefit from Black Friday sales. In fact, Black Friday in Canada is now more popular for deal hunters than Boxing Day. But if you really want to save money, you should start by looking at what you’re currently paying for your car insurance. On average, InsuranceHotline.com shoppers save $450 after comparing their current rate against the rates available through our network of more than 30 insurance providers.
Who couldn’t use an extra $450 as we quickly approach the holiday season?
Car insurance rates often change
It may come as a surprise, but insurance rates often change. In Ontario, for example, the Financial Services Commission of Ontario (FSCO) releases the rate changes they’ve approved every three months. Sometimes just a few insurers change their rates, and sometimes dozens do. Last time FSCO released their quarterly approvals, 20 insurers in Ontario had rate changes approved and of this 20, 16 increased their rates.
This is why shopping around is so important. The company who offered you the best rate five years ago, or even last year, may not be the company that can offer you the best car insurance deal today. You need to compare rates to be sure.
Ways to save on your car insurance, over and above shopping around
Comparison shopping is easily one of the best ways for you to save money on the car insurance you need. However, there are other ways you can save too and the following are a few of the most popular:
- Pay your premium all at once, rather than monthly
It sure is convenient paying monthly premiums, but that convenience comes at a price. Many companies charge a little extra to cover the cost of administering monthly payments. If you can afford to pay your premium annually—in one lump sum—then you’ll ultimately pay less for your coverage.
- Bundle your policies
If you buy your home, condo, or contents coverage from the same provider who insures your vehicle, then you’ll likely benefit from a discount in the range of five to 15 per cent off of one, or even both of your policies.
- Change your tires seasonally? Tell your auto insurer
Winter is quickly approaching and many people are switching their all-season tires to winter tires. But does your auto insurer know that you swap out your tires seasonally? Make sure they do, because it could save you about five per cent off your premium.
- Ask about discounts
Ask your provider for a list of discounts as there may be opportunities to save money that you didn’t know existed, or that your provider didn’t know to offer you. It will start a dialogue that could result in you saving money in the end.
- Increase your deductibles
The higher your deductibles, the lower your insurance premiums. If your insurance deductibles are set at $500, for example, consider increasing them to $1000 because you can typically save anywhere between five and 10 per cent. Keep it affordable though because should you need to submit a claim, the deductible is the portion you have to pay.
Car insurance is a big expense, see if you could pay less for it
As a Black Friday deal hunter, you know the value of shopping around to find the best prices. It’s time to take this same approach for your car insurance too. Compare car insurance quotes today to find the best deal for your coverage.