A change in season is the ideal time to spot check your car insurance rates.
Now that winter’s chill is officially upon us, it’s time to see if you can warm up your wallet by saving on your car insurance premiums. And, who couldn’t use a little extra cash, especially at this time of year?
‘Tis the season to shop around
Saving money on your car insurance rate is as simple as comparing quotes. In fact, comparing quotes is probably the best way to lower your car insurance rate. Auto insurance rates often change, and if you haven’t shopped around lately there’s a good chance you’re overpaying for your car insurance coverage. Yet, more than half of drivers simply let their policy automatically renew. This could be a costly mistake, especially when you consider that on average, InsuranceHotline.com shoppers save $700 after comparing their rates.
Car insurance savings tips
Comparing quotes will likely give you the most bang for your buck, when it comes to spending less on your car insurance, but you can also maximize your car insurance savings by:
- Paying your premiums all at once rather than in monthly installments
Many insurance companies charge drivers a little extra to cover the cost of administering monthly payments. If you can afford to pay the cost of your annual premiums in one lump sum, you can avoid those extra fees that are tacked onto your premium.
- Driving carefully and maintaining a clean driving record
Your driving record is one of the biggest factors in determining your insurance rate. Traffic tickets can raise your insurance rates for up to three years, and accidents stay on your record for at least six. Over several years, a bad driving record can cost you hundreds, even thousands, of dollars.
- Combining insurance policies for a multi-line discount
Multi-line is insurance jargon for what might be better described as, multi-product. Auto insurance and home insurance are different products, and when you buy them from the same insurance company they’ll often reward you for bundling. The discount can range from anywhere from five to 15 per cent off of one, or even both of your policies.
Multi-Line Discount Tip: Often people think only a home insurance and auto insurance policy qualifies for a multi-line discount, but there’s actually more to it. Snowmobiles, RVs, motorcycles, or tenant insurance can all usually be bundled to qualify for a multi-line discount too.
- Talking to your auto insurer if you change your tires seasonally
Chances are you’ve already swapped out your all-season tires for winter wheels. But does your auto insurer know that you change your tires seasonally? Makes sure they do, because it could save you about five per cent off your premium.
- Asking for a list of insurance 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.
Put your car insurance premiums on ice
A change in season is the perfect time to take a second look at your car insurance. Compare quotes, review your policy and talk to your insurance provider to see if there’s an opportunity to save.