This article has been updated from a previous version.
As the clock struck midnight on January 1, 2023, thousands of people across Canada likely vowed to save more money — one of the most common New Year's resolutions there is. Along with cutting back on unnecessary expenses, making some simple changes to your home and auto insurance could also go a long way in ensuring 2023 is your most profitable year yet.
Get rid of coverage you don't need
The new year is the perfect time to review your finances. Take a look at your current insurance and ask yourself whether you really need those policies. Ontario law requires all drivers to have auto insurance, and you should never skimp on home insurance, but do you really need extended warranties on electrical appliances or gadgets? These warranties (which are essentially insurance) can be costly and often work out to be more expensive than repairing or replacing the item if it breaks down.
Also, review your policies, and if you don't need a particular type of insurance, consider getting rid of it. For example, if you drive an older car, it might be time to have a chat with your provider about the necessity of having collision and/or comprehensive coverage. It’s a personal decision but, given the value of the car, your deductibles, and the premium you’re being charged for these optional coverages, it might make sense to drop this coverage from your policy. Another example is optional rental car coverage. If you no longer rent cars as much or perhaps have coverage through your credit card, then maybe it’s time to remove this endorsement from your policy, too.
Shop around for better auto and home insurance rates
Next, take a look at your insurance policies and see if you can find better deals elsewhere. You could save hundreds of dollars just by switching to a different insurance provider. Shopping around for better deals on your home and auto insurance, for example, lets you take advantage of insurance rate changes, which often fluctuate throughout the year. There’s also considerable savings to be made by shopping around for your life insurance or travel insurance too.
Your circumstances might be different this year, which is why it’s worth reaching out to your current insurance provider(s) and finding out if you can save money. Do you own a set of winter tires and live in Ontario? If so, you’ll qualify for a 5% winter tire discount, which all Ontario auto insurance providers are obligated to offer. Have you recently paid off your mortgage? If so, you may be eligible for a discount on your home insurance as well.
If your current insurance provider is unable to lower your premium and you can get a better deal with another insurance company, consider making the switch. Using an insurance comparison website like InsuranceHotline.com is always a good idea because you can compare different insurance policies in Ontario in one place.
Bundle your insurance and pay your premiums annually
Bundling several insurance policies could save you more money in 2023. By purchasing your policies from the same provider you’ll be eligible for the multi-line discount, plus you’ll be able to manage your policies with one point of contact. The multi-line discount usually saves customers up to 15% when bundling their auto and home insurance with the same provider. Paying for your insurance annually (instead of monthly) could also save you some cash.
You don't have to wait until it's time to renew in order to bundle your insurance, or change your payment frequency to annually. Ask your insurance company if you can reduce insurance costs without compromising your current coverage. You could save lots of money just by making a quick phone call. Don't forget to ask your provider about other discounts, too.
2023 is here, so what better time is there to review your home and car insurance? Shop around for cheap insurance in Ontario and bundle your insurance for even bigger savings. Making changes to your insurance policies could be your most lucrative New Year's resolution yet.
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