3 New Year's Resolutions for Saving Money on Your Insurance

Notebook with "Resolution #1: Save Money!" written in it. Decorative pinecones surround the notebook.

As the clock strikes midnight on January 1, 2019, thousands of people in Ontario will vow 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 insurance could also go a long way in ensuring 2019 is your most profitable year yet.

1. Get rid of insurance 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 (which are essentially insurance) on electrical appliances or gadgets? These warranties 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 after the holidays, 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 the 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 from your policy too.

2. Shop around for better deals

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 had by shopping around for your life insurance or travel insurance too.

Your circumstances might be different in the new year which is why it’s worth reaching out to your current insurance providers and find out if you can save money. Do you now own a set of winter tires? If so, you’ll now qualify for the winter tire discount which all Ontario auto insurers offer if you change your tires seasonally. 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 insurer is unable to lower your premiums and you can get a better deal with another insurer, 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.

3. Bundle your insurance and pay your premiums annually

Bundling several insurance policies could save you more money in 2019. 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 per cent when bundling their auto and home insurance together. 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 pay for it annually. After the holidays, 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.

2019 is just around the corner, so what better time is there to review your 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 ever. Happy New Year!