How to gobble up savings on your car insurance

If you’re driving to see family this Thanksgiving, you don’t exactly have control over how much it costs in gas to get there. However, there are ways to minimize your overall vehicle expenditure, starting with your car insurance premium.

Don’t let your auto insurance premium eat away at the savings you could gain from restructuring your policy and prioritizing vehicle safety. Stuff your wallet this Thanksgiving with these money saving car insurance tips.

Drive safely

Your driving record is in your hands, so steer clear of a high premium by driving within the laws of the road. At-fault collisions and traffic tickets add up and can cost you hundreds, if not thousands of dollars in unnecessarily high insurance premiums over the years.

Pay your car insurance premium in one lump sum instead of monthly

Monthly payments are convenient, but did you know many companies charge a little extra to cover the cost of administering them? If you can afford to pay your premium annually in one lump sum, chances are you’ll have paid less for your coverage at the end of the year.

Increase your deductible

Save on your car insurance premium by raising your deductible. A deductible is the portion of an insurance claim you pay out of pocket, so the higher your deductible, the lower your car insurance premium. Keep it within reach though, because the deductible amount is what you’ll have to contribute if you need to submit a claim.

Bundle your home and auto insurance policies

If you buy your home, condo, or tenant coverage from the same provider that insures your vehicle, you’ll benefit from a discount on one or both of your policies. Your insurance company can let you know what discounts they may offer.

Use winter tires

All car insurance companies in Ontario must offer a discount to policyholders who install winter tires by a specific date prior to the winter driving season. The winter tire discount can usually save you about 5% off your annual premium. Make sure your insurance provider knows about your winter tires to take advantage of the discount.

Shop around for the lowest car insurance rate

Insurance rates often change. In Ontario, for example, the Financial Services Regulatory Authority of Ontario (FSRA) releases approved auto insurance rate changes, usually within days of giving insurance companies the green light to increase or lower their premiums. Some months, one or two insurance providers change their rates, and others, a handful do.

As a result, comparing auto insurance rates becomes crucial to finding the lowest rate possible. Otherwise, there’s a good chance you’re overpaying for your coverage. The provider who gave you the best rate last time around may not be the one who offers you the best car insurance rate this year, so it pays to shop around.

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