Six Ways to Save on Car Insurance

Car insurance is necessary to protect yourself and your loved ones financially in the event of an accident, theft or vandalism. It's also a legal requirement in Canada. So, how can you get the best bang for your buck when buying car insurance and still protecting yourself against the unexpected? Here are six tips that will help you keep you well protected and keep your costs reasonable:

1. Buy your home and car insurance from the same company.

Insurance companies will generally give you a discount if you purchase multiple insurance policies from the same company. This is known as a multi-line discount. In addition, it means you only have one monthly statement and one bill to pay - saving you time and making it easier to keep track of your expenses. You should also insure all of your vehicles under the same policy to compound your savings.

2. Stick to the speed limit.

Speeding tickets add up in a hurry and can significantly increase your insurance premiums. Additionally, speeding is more likely to lead to serious accidents. Multiple speeding tickets can give your insurance company the impression that you are a high risk driver, and you'll pay more because of that. Give yourself lots of time to get where you need to go and you'll not only feel more relaxed, but you'll be safer and avoid seeing costly increases in your insurance rates.

3. Plan ahead.

When shopping for another car, either new or used, inquire with your insurance provider to get quotes on the vehicles you're considering purchasing. Some vehicles are much cheaper to insure than others, and this can significantly affect the overall cost of putting a vehicle on the road. It pays to do your homework before you buy. If you'd rather not spend the time on the phone with your insurance broker, an online car insurance quote provider is a quick and easy option to see where the vehicles stack up. Try to find the cheapest rates on auto insurance before you purchase your new ride.

4. Raise your deductible.

Choosing a higher deductible can reduce your annual or monthly insurance bill significantly. After all, your main goal is to be insured for larger and more expensive losses, such as accidents or theft. In the case of an insurance claim, you'll need to make sure you can come up with the money to cover the deductible. If you're a safe and claims-free driver, a higher deductible can save you money on your premiums without costing you out of pocket.

5. Reduce the amount of driving you do.

Your auto insurance rates are based in part on the number of kilometres you drive in a year. Take public transit or car pool when possible to reduce the distance you drive over the course of a year and that can help keep your insurance rates down. Walking or biking occasionally for short trips is not only great exercise; it reduces wear and tear on your car and can help reduce your premiums as well.

6. Shop Around.

Auto insurance is a competitive industry. It pays to do your homework and shop around for the best rates. But be sure to consider other important aspects of insurance - in addition to the premiums. Choose a company and agent you trust, one that is readily available to you and who you feel comfortable dealing with.

Car insurance is a significant but necessary expenditure for every vehicle owner. It pays to know how to keep your premiums as low as possible while still ensuring that you and your loved ones are protected in case of an accident.